African Minerals’ Export of Iron Ore on Track

Twenty-six Cape-size vessels operated by African Minerals have been very busy in the first quarter of 2014, transporting 4.52Mt of direct shipping iron.

 
African Minerals exported 9.1Mt from the Tonkolili iron ore mine in Sierra Leone in the first half and is on target to achieve full year guidance of 16-18Mt, the company said.

In June, with nine vessels completed, all exports were lump and fines, with the exception of only one vessel of lump blend. On 22 June the company completed loading of the Cape Rivera with 182,289t of standard iron ore fines. The completion of loading of this vessel takes the total material exported from the operation to over 25Mt since the commencement of loading for export on 2 November 2011.

Prior to the loading of this vessel, a total of 141 Cape-size ocean going vessels and 5 smaller vessels had been despatched as standard sales cargoes (excluding test cargoes).

Chief executive Bernie Pryor said: “This milestone achievement that the project has reached, of already selling 25Mt in its operating life, is significant in that this has been achieved just 30 months after commencement of exports. Furthermore, exports commenced just 42 months from the drilling of the discovery hole by the executive chairman, and just 15 months from the granting of the mining lease.”

“This month is also significant since it marks our first self-arranged CFR cargo, and the 6% saving we have achieved, potentially in a permanent change, shows the benefit of our stated strategy of bringing more of our own control into the costly element of shipping. Marine costs are indeed as much as our land-side C1 costs, and represent an area which can yield significant near term savings.”

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Press Release, July 7, 2014