African Minerals Limited (AML), a Channel Islands-based iron ore miner with significant iron ore and base metal interests in Sierra Leone, West Africa, has announced the commencement of formal mining operations at the Simbili part of the ore body at its Tonkolili iron project, Sierra Leone.
According to a company statement, the first production blast for the direct shipping ore (DSO) phase 1 material occurred successfully on December 17, 2010. The phase 1 dry plant process equipment was also commissioned during the course of the week, with the wet process plant to follow with planned first ore on ship in Q4 2011.
Commenting on the development, CEO Alan Watling said, "This memorable event marks another milestone in the company's development which has seen us progress rapidly from Tonkolili's rediscovery three years ago, through its development stage from a magnetic anomaly to become a major commercial ore body and now towards mine production."
AML also said that a secured loan facility of the company will now be completed in January 2011 instead of on December 31, 2010 as previously announced. The company retains the option to receive further commitments until closing up to the maximum facility amount of US$500 million.
As SteelOrbis previously reported, in a release on December 8 the miner announced the successful outcome of the marketing of its secured loan facility announced on November 11, 2010, with commitments received for in excess of US$370 million to that date.
The company believes that, following the closing of this facility, it will have sufficient funds in place to reach production under its phase I development program.
As SteelOrbis previously reported, AML announced on June 9 this year that an aggressive exploration program is underway to define additional hematite mineralization to underpin the expansion of the Tonkolili project to 25 million mt per year of DSO output. The company said that it is currently on schedule to commence shipping of 12 million mt of DSO hematite product in Q4 2011.