UK-based London Mining Plc. has announced the creation of a new 50:50 JV company called Saudi London Iron Ltd (SLI) with Saudi Arabian National Mining Company (National Mining) for the development of the Wadi Sawawin iron ore project near the west coast of Saudi Arabia.
SLI plans to utilize mining licenses held by National Mining, which are to be transferred to SLI, to create a three million mt per annum iron ore mining and palletizing operation for the production of high grade pellets. The mines in question are located in the Northern Hijaz region of the Kingdom of Saudi Arabia, 900 km north of Jeddah and 60 km from the Red Sea coast. The three deposits involved are estimated to contain a total of 412 million mt of iron ore reserves with an average Fe grade of around 42 percent.
The establishment of the JV in question is in line with London Mining's strategy to build a world class portfolio of mines to cater for long-term world steel demand.
London Mining has mining, exploration and development projects located in Brazil, Sierra Leone, Greenland and Mexico as well.