Anglesey Mining plc LSE:AYM
18 July 2012
5 million tonne per year port capacity reserved
Anglesey Mining’s 26% owned associate Labrador Iron Mines Holdings Limited (TSX: LIM) is pleased to announce that it has agreed to participate with the Sept-Îles Port Authority (the “Port Authority”) in the development of its new multi-user dock facility (the “Facility”) at Pointe-Noire in the Port of Sept-Îles. Under the terms of its agreement with the Port Authority, LIM has reserved an annual capacity of 5 million tonnes of iron ore with a right to secure additional residual capacity.
The $220 million project, proposed and sponsored by the Port Authority, is planning for two berths, dedicated exclusively to iron ore shipments, equipped with two ship loaders as well as two conveyer lines, with an annual capacity of 50 million tonnes per year.
Under the agreement, 50% of the capital cost ($110 million) will be contributed as buy-in payments by five potential users, pro rata to each user’s reserved tonnages. LIM has reserved an annual capacity of 5 million tonnes and has committed a total of $12.8 million (£8 million) payable in two equal installments. The first installment of $6.4 million has been made and the second installment is payable in July 2013. These advance payments will be credited as discounts against future port wharfage and shipping fees, until such time as the cumulative discounts amount to LIM’s buy-in payments.
As previously announced on February 13, 2012, the Government of Canada will invest up to $55 million and contribute to the construction of the Facility.
Construction of the new dock is expected to be completed by 31 March 2014.
About Labrador Iron Mines Holdings Limited
Labrador Iron Mines is Canada’s newest iron ore producer. It owns a portfolio of direct shipping iron ore operations and projects located in the prolific Labrador Trough. The first full production season commenced in April 2012 with a sales target of 2 million tonnes of iron ore for the 2012 year.
LIM is focused on a strategic and robust growth plan arising from its portfolio of 20 iron ore deposits in Labrador and Quebec, all within 50 kilometres of the town of Schefferville. The James Mine is connected by a direct rail link to the Port of Sept-Iles, Québec. The area also benefits from established infrastructure including the town, airport hydro power and railway service. Starting with the James Mine and leading to the development of the expanding Houston flagship project, the objective is to provide shareholders with long-term value as production and sales ramp up towards 5 million tonnes per year by 2015.
LIM is currently the only independently-owned Canadian iron ore producer listed on the Toronto Stock Exchange and trades under the symbol LIM.
About Anglesey Mining plc
Anglesey holds 26% of Toronto-listed Labrador Iron Mines Holdings Limited which is now producing iron ore from its James deposit, one of LIM’s twenty direct shipping iron ore deposits in western Labrador and north-eastern Quebec.
Anglesey is also carrying out development and exploration work at its 100% owned Parys Mountain zinc-copper-lead deposit in North Wales, UK where there is estimated to be a total historical resource in excess of 7 million tonnes at over 9% combined copper, lead and zinc.
For further information, please contact:
Bill Hooley, Chief Executive +44 (0)1492 541981;
Ian Cuthbertson, Finance Director +44 (0)1248 361333;
Samantha Harrison / Klara Kaczmarek: RFC Ambrian +44 (0)2076 344700;
Emily Fenton / Jos Simson: Tavistock Communications +44 (0)20 7920 3155