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Agreement to Utilise Established Rail Corridor to Port of Buchanan
Sable Mining Africa Ltd, the AIM listed iron ore exploration and development company, has said that West Africa Exploration S.A., its 80% subsidiary, has signed an Infrastructure Development Agreement with the Government of Liberia relating to the development, ownership rights, financing, use and operation of rail and port infrastructure in the Republic of Liberia necessary to facilitate the export of iron ore from the Company’s flagship asset, the Nimba Iron Ore Project in south-east Guinea, through Liberia utilising the established rail line from Yekepa to the Port of Buchanan.
Overview:
· Landmark agreement signed between the Government of Liberia and WAE, for a 25 year IDA relating to the export of Guinean-based natural resources through Liberia to the Port of Buchanan from Nimba.
· Provides a framework for (amongst other matters):
o the granting and obtaining of additional rights necessary to implement the Liberian aspects of the Project; and
o the rehabilitation and expansion of the existing rail corridor from Yekepa (30km from the Project), to the Port of Buchanan.
· In the context of the Project’s development, signing of the IDA complements and builds upon the grant of Mining Licence and Export Decree by the Government of Guinea in September and October 2013, respectively (which authorise WAE to mine iron ore from Nimba and export through Liberia to the Port of Buchanan).
Sable Mining Chief Executive Andrew Groves said, “The signing of this IDA is truly a momentous occasion for Sable Mining and the countries of Guinea and Liberia and is the result of many months of hard work by the Company, its partners, and numerous Government ministers, staff and representatives in both Liberia and Guinea. I wish to thank all those parties involved, and especially Her Excellency the President of the Republic of Liberia, Ellen Johnson Sirleaf, and His Excellency the President of Guinea, Alpha Condé, who have both had the vision to recognise and champion the importance of regional co-operation to facilitate resource and economic development for the benefits it will bring to both of their countries.
“The significance of the IDA will be felt across the West African region, as it paves the way for the development of Nimba which, when in production, will generate significant revenue, employment opportunities and tax income. The spirit of co-operation between these two countries has not only meant a defined development path can be put in place for this strategic asset but also provides a clear signal to other international enterprises that the Mano River Union region is an attractive investment destination.
“On a project specific basis, the use of Liberian based infrastructure for export means that, compared to its peer group, Nimba’s capex requirement is greatly reduced. Nimba has demonstrated itself to be a unique iron ore asset with excellent commercial potential even during periods of depressed spot prices. It is high grade, high tonnage DSO and has simple mining and processing methods. Nimba therefore displays many of the key attributes which position it as an attractive asset to move through to production in the near term. These key differentials, coupled with an established export solution and the support and co-operation of both the Government of Liberia and the Government of Guinea, clearly distinguishes Nimba as a high priority target for investment and development.”
