🕐15.08.11 - 13:54 Uhr
ANGLESEY MINING - LIM SIGNS IRON ORE SALE AGREEMENT WITH IOC
Anglesey Mining plc
Anglesey Mining plc LSE:AYM
15 August 2011
LIM signs Iron Ore Sale Agreement with IOC
Anglesey Mining’s 33% owned associate Labrador Iron Mines Holdings Limited
(TSX: LIM) is pleased to report that it has entered into an agreement with
the Iron Ore Company of Canada (“IOC”) for the sale and shipping of all of
LIM’s 2011 iron ore production.
Iron ore from LIM’s new James Mine in northwest Western Labrador is
currently transported by rail from its Silver Yards rail head, near
Schefferville, via the TSH railway and the Quebec North Shore and Labrador
(QNS&L) railway, to the Port of Sept-Iles where the ore is unloaded and
stockpiled, adjacent to LIM’s Point-aux-Basques dock facilities leased from
the Port of Sept-Iles.
Under the confidential sales contract with IOC, the iron ore will be
delivered to Asian markets and resold by IOC’s marketing organization on the
spot market.
The sale price for iron ore sold to IOC will be based on the
actual realized prices to Chinese customers, less an allocation for
handling, loading, shipping and sales costs.
IOC is Canada’s largest iron ore producer from its mines located in Western
Labrador and is a leading global supplier of iron ore pellets and
concentrates.
IOC’s major shareholder and operator is the international
mining group Rio Tinto which has activities in more than 40 countries
throughout the world.
IOC owns 100% of the QNS&L railway and, at the Port of
Sept-Iles, owns established storage and ore handling facilities, including
its ship dock capable of taking ocean going vessels up to 240,000 (dwt)
tonnes.
LIM has previously entered into a life of mine, confidential rail
transportation contract with QNS&L for the rail transportation of LIM’s
products on the QNS&L railway.
This contract provides for a confidential
tariff, with capacity and volume commitments on the part of each party.
LIM’s agreement with IOC will enable utilization of Cape Size Ocean going
ships, where current freight rates are lower than for the alternative but
smaller Panamax vessels, for the shipment of LIM’s iron ore.
LIM believes that the benefits associated with this arrangement, together
with the benefits of the utilization of larger ships, will ensure that the
maximum possible tonnage of LIM’s iron ore will be efficiently shipped and
sold during the remainder of 2011.
About Labrador Iron Mines Holdings Limited
LIM’s Schefferville Projects involve the development of twenty direct
shipping iron ore deposits in western Labrador and north-eastern Quebec near
Schefferville, Quebec.
The properties are part of the historic Schefferville
area iron ore district where mining of adjacent deposits was previously
carried out by the Iron Ore Company of Canada from 1954 to 1982.
Mining and processing operations commenced in June 2011 and the first train
carrying iron ore departed LIM’s Silver Yards for Sept-Iles on June 29,
2011.
To the end of July, about 50,000 tonnes of direct shipping iron ore
had been delivered to the Port of Sept-Iles where it is stockpiled awaiting
shipment.
Production is planned to increase in stages over the next several
years.
For further information, please view [1]www.labradorironmines.ca.
Links:
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http://angleseymining.us2.list-manage.com/track/click?u=b2509bf4262d15b1a66d37bc4&id=59bfddd097&e=ba26fee041
About Anglesey Mining plc
Anglesey Mining with its LSE main board listing is primarily focused on its
33% interest in Labrador Iron Mines (TSX:LIM).
In addition to any new
projects that may be brought forward the company owns 100% of Parys Mountain
in North Wales with an historical resource in excess of 7 million tonnes at
over 9% combined copper, lead and zinc.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0) 1492 541981;
Ian Cuthbertson, Finance Director +44 (0) 1248 361333;
Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076
344700;
Emily Fenton / Jos Simson, Tavistock Communications +44 (0) 20 7920 3155 /
+44 (0) 7788 554035.
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