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London Mining’s (LON:LOND) announced Thursday production volumes at its Marampa Mine in Sierra Leone jumped 24% to 2.1 million tonnes in the six months to end-June, but warned the outbreak of the Ebola virus in the West African country is beginning to impact operations.
Graeme Hossie Chief Executive of London Mining said in a statement the company has “begun to experience disruption to the supply chain and to a number of services” due to the epidemic.
As a result of a slower than expected ramp-up of its plant to 5.4 million tonnes per year and Ebola, the company narrowed its 2014 production guidance to the lower end of the range.
Based on the current expected level of Ebola-related impact output of between 4.9 million tonnes and 5.1 million tonnes is now expected for the full year.
The company predicts operating cost of around $50 a tonne, with $1 a tonne in Ebola related costs.
Revenue of $110.6 million for the six months were down 22% as 5% increase in sales volumes was offset by lower market prices.
Weak iron ore prices have also forced the company to defer for two years a $175 million “Life of Mine” extension capital programme.
Marampa, which boasts a billion tonne resource, is about 120 km from Freetown, the capital of the West African nation.
The Marampa mine is a brownfields site formerly operated by the Sierra Leone Development Company (DELCO) and William Baird between 1933 and 1975.
Marampa reached a peak production of 2.5mtpa before low iron ore prices forced its closure.
Continuing weak market economics and civil war prevented redevelopment of the mine until the mining licence was acquired by London Mining in 2006.
London Mining is also developing projects in Greenland and Saudi Arabia.
London Mining acquired Marampa Mine in 2006.
Image by Mohand Yahiaoui
3 Comments
Murkin
Problem could be easily solved if they just hired white people to run their mine as white Americans don’t die from Ebola .
Winston Forde
How unreasonable of Ebola to interrupt the deplorable plundering of our rich iron ore mines. For now these people have fled and so Briitsh Airways has no reason to fly to Lungi. This article puts things into perspective with its lack of any reference to the local people, the workers who have been abandoned to suffer and die until their rich masters return safely to continue to pillage. How sad their profits have dropped, not because they are making a sizeable contribution to the recovery from Ebola or offering to pay their due taxes, but because the market is aggressive….my heart really bleeds for them.
Plenum
Right, let’s hear more of the Capitalist’s Perspective for a few weeks, and maybe a few Western governments will realize that they really should CARE (ha!) about the health concerns of those peoples they exploit, those leaders they bribe, and the countries they do, and provoke, (civil) wars. As they see their profits drop and dividends dry up, that’s surely, only, when action will occur…