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Cape Lambert eager for Mayoko royalties

Cape Lambert eager for Mayoko royalties

Photo by Reuters

6th February 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – The shareholders of ASX-listed Cape Lambert smiled at the news that the company was expecting a royalty payment from the Mayoko project, in the Republic of Congo, after owner Exxaro Resources was recently granted a mining convention.

The Mayoko royalty was negotiated by Cape Lambert as part of its consideration when it sold the project to African Iron in 2011, with the company subsequently being taken over by Exxaro in 2012.

The royalty would equal $1/t for every tonne of iron-ore shipped from the Mayoko project.

Exxaro was expected to ship some two-million tonnes of iron-ore product in 2014, and would increase production to some ten-million tonnes by 2017.

“This is great news that Exxaro will commence mining operations at the Mayoko iron-ore project in the coming months, not only for Exxaro and the people of the Republic of Congo, but also for Cape Lambert and its shareholders, who will receive significant royalty income for many years to come,” said Cape Lambert executive chair Tony Sage.

The mining convention was subject to certain conditions, including the execution of definitive agreements for access to port and rail facilities.

Edited by Creamer Media Reporter

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