New book ‘102 Things to Do with a Hole in the Ground‘ spotlights global reclamation projects
Stories of reinvented coal mining regions, regenerated communities and rebuilt ecosystems are told in a new book published this month.
The Isua project will comprises of a mine, processing plant and 105km concentrate pipeline which connects the plant to a deepwater port capable of year round loading of 250,000t ships. Image from London Mining corporate video.
London Mining (LON:LOND) received a 30-year exclusive exploitation license for its 100%-owned Isua Project.
The operating mine, which would employ 450 people, is expected to produce 15Mdmt/a of iron pellet feed concentrate. The iron ore will be shipped to a dedicated deep water port. Shipping will be year round.
A bankable feasibility project for Isua was completed in March 2012. A JORC was completed showing a 1.1 billion tonne resource.
The company will pay the government an escalating royalties with the first five years at 1%, years 6-10: 3%; years 11-15: 4%, rising to 5% after year 16. London Mining says the lower rate in the earlier years recognises the need to protect the payback period for initial development investment once the mine is brought into production.
Based on a 15 year mine life, the company estimates that corporate and dividend tax could be Can$5.51 billion and income tax of personnel could be Can$740 million.
London Mining acquired the Isua licence in 2005 from Rio Tinto.
“The new fiscal agreement will have no material adverse impact on the net present value of the project,” said the company in a statement.
CEO Graeme Hossie admits that financing could be challenging.
“Although new projects in iron ore currently do face funding challenges, we believe Isua’s high quality product segment will become increasingly important to steelmakers to balance the growth in lower quality iron ore supply and the increasing importance of pellets in the evolving iron ore market,” said Hossie in a statement.
London Mining’s flagship operation is its Marampa Mine in Sierra Leone.
Located 150km north-east of Nuuk and 110km from a proposed deep seawater port, Isua will produce 70% Fe pellet feed concentrate. Map from London Mining.
Image of Greenland ice by Christine Zenino
6 Comments
Gwaine Robinson
Australian Dump Truck Driver, are they seeking workers?
Mike Hocker
I am a Canadian heavy equipment operator with 36 years in mining. I am safe and productive. I have experience on everything from heavy hauler to hydraulic and electric shovels. I have also been a heavy equipment trainer for 2 and 3/4 years. If any of these qualifications interest you , you may call me at 780 678 6715 , my email is [email protected]. You may also check out my Linked in Page, Mike Hocker. Thank you
Pekka Lappalainen
I am a Finnish geophysicist&mining engineer who made his MSc. thesis about Isua deposit in 1969. The huge deposit was already found years earlier by ‘regional’ airborne magnetic surveys, carried out by Finnish exploration co. in connection with Kryolitselskabet Oresund A/S exploration activities in Greenland. The thesis “Magnetic properties of The Isua Iron deposit and minimum amount of magnetic Iron”. Thesis was based on 97 cube ore samples and airborne & surface magnetic measurements, reflection seismic results of Ice cover thickness. Only about a half of the deposit was outcropping through the ice cap. It is interesting to see that after slow Ice cap melting (?) the deposit finally will be more and more visible and “available” for open pit mining.
Hoping good future for the mine project.
lutras
Forget about this mine: they will never get enough money to start the mine.
Apart from that anything you need on this island has to be imported and is terribly expensive, including staff, this means capex AND cash cost will be too high to make a profit.
Mike Failla
Doesn’t sound viable as with infrastructure and logistic concerns. Could it be done? Sure. will it be done doubtful (see lutras post).
Brutemandave
I have drilled at Isua and see many challenges for obtaining ore from this location, the main problem is how do you clear and remove 200 to 500 feet of solid ice which covers much of the deposit, and remain economically feasible? Other then that the iron ore deposit is world class.