JOHANNESBURG (miningweekly.com) – The first shipment of 49 656 t of iron-ore concentrate from Aim-listed London Mining’s Marampa operation, in Sierra Leone, had left the Port of Freetown, bound for Europe, the miner said on Wednesday.

London Mining added that two more ships had been ordered to send iron-ore concentrate to China, where a premium price to the Platts 62% cfr China benchmark is expected to be realised.

Further, the Pride of Marampa transhipment vessel is expected in Freetown in March, providing the capability to load Panamax and Capesize vessels by the end of the first quarter.

Marampa produced 93 000 t of iron-ore concentrate since production started in December, of which 75 000 t was produced in January. Rampup of the plant continued with the average run rate of 2 500 t/d, and a maximum rate of 3 800 t/d, exceeding the target set for January. The current production target of 1.5-million ton this year is based on the assumption of an average production rate of 3 200 t/d in February, increasing to 4 100 t/d in March.

Capacity of over 5 000 t/d is expected once a ball mill is integrated into the processing circuit in the third quarter. A further increase in the capacity of the current plant is expected with the commissioning of the gravity circuit in the fourth quarter. The installation of a second optimised plant is expected to increase Phase 1 capacity to 13 900 t/d by the end of the third quarter in 2013, to achieve the targeted yearly production of 4.2-million tons in 2013 and five-million tons in 2014.

Meanwhile, the wholly owned Colombia coking coal operation has started production and the operation is now focusing on completing the oven build out, ramping up production, optimising product specification and starting transport of coke by road to Barranquilla, where port capacity has been secured for 200 000 t/y of exports.

London Mining expected to reach the targeted production run rate of 200 000 t/y by the end of the third quarter.

“January has been a landmark month for London Mining. We have commenced exports from our operation in Sierra Leone and production from our operation in Colombia. We are focused on producing 1.5-million tons at Marampa this year and are encouraged by the Marampa product specification, which allows us to capture a significant grade-related pricing premium,” said CEO Graeme Hossie.

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