Jonah takes over BHP Billiton’s Liberian iron-ore interests
JOHANNESBURG (miningweekly.com) – The Liberian iron-ore interests of diversified major BHP Billiton have been acquired by Cavalla Resources, a wholly-owned subsidiary of investment holding company Jonah Capital, a private company with a portfolio of assets primarily in the mineral resource sector in sub-Saharan Africa.
Cavalla has been granted the exclusive rights over the four exploration areas of Goe Fantro, Kitoma, St John River South and Toto, as Jonah Capital’s exclusive iron-ore holding company.
Work has begun at Goe Fantro and the development of the other assets will follow in a phased approach.
Scoping studies indicate that Goe Fantro can be brought into production by 2018 at a capital cost of between $160-million and $230-million to produce five-million tons a year of 58% to 62% iron at an estimated operating cost of $22/t, free-on-board at Buchanan port.
“We look forward to working closely with government and the local communities where we operate, to contribute towards the continuing growth of the Liberian economy,” Jonah Capital and Cavalla executive chairperson Sir Sam Jonah said in a media release to Creamer Media’s Mining Weekly Online.
Sir Sam, who began his career in mining at Obuasi gold mine in Ghana in 1969 as a $73-a-month shovel boy, is a former Ashanti Goldfields CEO who helped to form the JSE- and NYSE-listed AngloGold Ashanti with current Business Leadership South Africa chairperson Bobby Godsell.
The combined defined 1.9-billion ton resources are calculated to include 132-million tons of direct shipping ore at 57% iron.
Jonah said he hoped that the transaction would serve as a catalyst for attracting further investment to Liberia, where the development of the mineral resource sector was well under way.
Cavalla, which also has a further exploration licence at Kitoma II as well as the right of first refusal over three additional exploration areas, now has the opportunity to become a low-cost producer of quality iron-ore, with minimal logistics and infrastructure risk.
The transaction is also said to enjoy the full Liberian government support as it fosters economic growth following the eradication of the ebola virus in the country.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation