London Mining Venture

London Mining is an expanding producer of high specification iron ore for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from the Marampa mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mtpa in 2013. A prefeasibility study was completed in 2011 which shows that Marampa has resources to support a staged expansion to over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production by developing two other mines in Greenland and Saudi Arabia. In addition London Mining is producing from a coke operation with coking coal resource potential in Colombia. The Company listed on London AIM on 6 November 2009.

Wits Basin owns the Bates-Hunter Gold Mine in Central City, Colorado. Discovery of gold at the Bates-Hunter Mine in 1859 kicked off the Colorado gold rush and established Denver as a major American city. All mines in the area went dormant in 1936. This mining district has historically produced more than 4 million ounces of gold. Twenty-five percent (25%) of all the gold mined came from the area immediately surrounding the Bates-Hunter mine. Wits Basin’s property controls the 15 principal veins underlying the mine

London Mining is pleased to announce that it has signed a letter of intent with Wits Basin Precious Minerals, Inc. (“Wits Basin“) which may result in London Mining becoming a 50/50 joint venture partner for Wits Basin’s iron ore project in Ma Anshan in the People’s Republic of China. The potential transaction remains subject to due diligence and finalisation of definitive legal documents.

Flooding can come from various sources, from coastal waters, from rivers (also known as fluvial flooding) and surface water flooding. O f all these sources London is most vulnerable to surface water flooding. Heavy rainfall can swiftly overwhelm the drainage network, leading to flooding of low-lying areas.

 

London Mining Operations

Under the terms of a revised  joint  venture agreement signed on 20 July 2010, in  return  for   no  further    material  funding   requirements  and  no   further  dilution  in subsequent equity   funding’s, London   Mining  is  to  recieve a direct interest of 25% in the Wadi Sawawin project  through its  joint venture partner in  the  project  National  Mining  Company (NMC).  NMC  holds  the historical  exploitation   licence  for   the  Wadi  Sawawin  project  and  three  adjacent  exploration   licences . This  agreement  supersedes  the  previous agreement whereby London Mining held a 50% interest in a joint venture company, Saudi London Iron Limited, into which the  licences  were  going  to  be  transferred. Upon  closing  London Mining  will receive shares equal to 25% of the issued share capital of NMC.

Wits  Basin  Precious  Minerals  Inc. (OTC  BB:  WITM)  holds  an  impressive property portfolio.China Global Mining Resources (CGMR), Wits Basinís 50/50 joint venture with London Mining Plc, controls over  69 million tonnes of magnetite iron ore resources in a single deposit that can  be  processed with existing facilities at the  Companyís Maanshan Xiaonanshan Mining Co., Ltd. and the Nanjing Sudan Mining Co., Ltd., an iron  ore  mine and concentrator plant located in the Anhui and Jiangsu Provinces of the People ís Republic of China.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens at least once a year in the UK. Earlier this year, torrents of rain hit the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused bridges and road networks to collapse and four people lost their lives. In 2007, Yorkshire was hit hard by floods and some people  are  still  recovering  from  the destruction caused by the floods three years later; the floods killed six people and left hundreds of people homeless and thousands without electricity.

Special “rest centres” were set up in the worst-hit villages, allowing families to take shelter overnight as the floodwater surged through the rural West Country.

London Mining

London Mining is an expanding producer of high specification iron ore for the global  steel  industry and  is  focused  on  identifying,  developing  and  operating  sustainable  mines. London Mining commenced sales  from the Marampa mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mtpa in 2013. A  prefeasibility study was completed  in  2011  which  shows that  Marampa  has resources to support a staged expansion to over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production  by developing two other mines in Greenland and Saudi Arabia. In addition  London  Mining  is producing  from a  coke  operation  with  coking  coal resource  potential  in  Colombia. The  Company  listed  on London  AIM  on  6 November 2009.

London Mining (“London Mining” or the “Company”) announces  that  China Global Mining Resources Limited (“CGMR”), a subsidiary of the China Global Mining Resources (BVI) Limited joint venture (“JV”) which is held 50:50 with Wits Basin Precious Minerals Inc (“Wits Basin”), has received a claim regarding the  payment  of  the  deferred consideration for  the purchase of   the Sudan processing plant.  The claim is to be determined through arbitration.  CGMR is in discussions with the sellers of the plant regarding this claim and a resolution (either by agreement of through arbitration) is expected in the next 6 months.  The Sellers have no legal or commercial recourse to London Mining or any subsidiary other than the CGMR JV with respect to this claim.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens at least once a year in the UK. Earlier this year, torrents of rain hit the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused bridges and road networks to collapse and four people lost their lives. In 2007, Yorkshire was hit hard by floods and some people  are  still  recovering  from  the destruction caused by the floods three years later; the floods killed six people and left hundreds of people homeless and thousands without electricity.

London Mining hires former Schroders chairman

 

LONDON – Iron-ore miner London Mining has hired Michael Miles to be its chairman, appointing the former chairman of fund manager Schroders to  its board with immediate effect.

The  miner, which  produces  iron-ore  in  Sierra Leone,  said   it  current chairman, Colin Knight, would step down from the role at the start of 2013, after almost eight years.

“This is the right time for a new chairman to steer the company as it  takes its projects in Sierra Leone and Greenland through to their next phases,” Knight said.

Miles, who has also been chairman of speciality chemicals  company Johnson Matthey, has experience in China, the world’s largest consumer of iron ore, through an early career in Cathay Pacific.

He stepped down as chairman of Schroders in May after nine years.

Parliamentary Debate on UK-listed mining companies

Wednesday’s Westminster Hall debate in the UK Parliament on UK-listed mining companies included several mentions of London Mining Network and our report, UK listed mining companies and the case for stricter regulation.

John McDonnell MP singled out GCM Resources for particular criticism, noting the extreme damage that would be done by its Phulbari opencast mine in Bangladesh were the project to go ahead.

GCM’s AGM is to take place on 20 December in London.

John McDonnell also spoke about Anglo American, BHP Billiton, Vedanta and Xstrata.

TECHNICAL TEAM ADDITIONS

London Mining is pleased to announce the appointment of John Wonnacott, as the Project Director for the Isua Project in Greenland and Rinaldo Nardi as Senior Specialist in Mineral Processing and Plant Design.

John Wonnacott is a civil and geotechnical engineer with 30 years experience with particular expertise in the development of projects in cold weather climates. Most notably between 1997 and 2003 John was the Deputy Project manager and Chief Engineer of the Diavik Diamond Mine in Canada where he hired, led and directed a team of engineers responsible for the design and construction of a $1.3 billion new mine installation 100 Km south of Arctic Circle.

Rinaldo Nardi is a mining engineer and is also a doctor in mineral engineering. He has 35 years experience including 25 years with Vale. Rinaldo has significant expertise of managing both iron ore and coal projects at the design, construction and start-up stages.

John and Rinaldo augment the project and technical services teams led by COO Luciano Ramos. Luciano’s team has recently been expanded to provide support for the continued fast track development of projects in China, Sierra Leone, Saudi Arabia and Greenland.

In the last quarterly report London Mining announced the hiring of Phillip Sterling, a metallurgical engineer with over 25 years experience with Samarco Mineração Rio do Norte, Savage River Mines and BHP Billiton, as General Manager for Mineral Processing, Engineering & Mining Operations, and Sergio Guedes, a geologist with over 20 years experience and formerly with CVRD and Rio Tinto, as General Manager for Mineral Resources.  Separately, David Keili, a Sierra Leone national with extensive western training in the US including an MBA, and 28 years experience in civil engineering and mining, was appointed as Project Director for the Marampa Project in Sierra Leone.

Luciano Ramos said “The success of any company is directly linked with the competency and capability of its team. London Mining’s investment in the right people has been the cornerstone of its success so far and we continue to build on our core of industry professionals with experience of some of the world’s best mining projects. Our aim is to have a technical services and project management capability that will enable us to execute our ambition to become a leading mining company.”

Mining

Mining is the extraction of valuable minerals or other geological materials from the earth, from an orebody, lode, vein, (coal) seam or reef, which forms the mineralized horizon and package of economic interest to the miner.

To gain access to the mineralised package within the lease area (aka Mining Rights Lease) it is often necessary to mine through (to create access, shafts, addits, ramps) or remove to the side waste material which is not of immediate interest to the miner. The total movement of ore and waste, which also includes the removal of soil in some cases, is referred to as the mining process. Depending on the nature, attitude, and grade of the orebody, it is often the case that more waste than ore is mined during the course of the life of a mine. The waste removal and placement is a major cost to the mining operator and to facilitate detailed planning the detailed geological and mineralisation characterization of the waste material forms an essential part of the geological exploration programme.

London Mining is an expanding producer of high specification iron ore for the global steel industry and is focused on identifying, developing and operating sustainable mines. London Mining commenced sales from the Marampa mine in Sierra Leone in 2012 and expects to reach production capacity of 5Mtpa in 2013. A prefeasibility study was completed in 2011 which shows that Marampa has resources to support a staged expansion to over 16Mtpa. London Mining has also completed bankable feasibility studies outlining plans for a further 20Mtpa of iron ore production by developing two other mines in Greenland and Saudi Arabia. In addition London Mining is producing from a coke operation with coking coal resource potential in Colombia. The Company listed on London AIM on 6 November 2009.

Objectives and strategy of London Mining in CGMR

Objectives and strategy

London Mining’s objective is to identify, develop and operate scalable mines to become a mid-tier supplier to the global steel industry. The Group’s principal assets have actual or anticipated production and the ability for further expansion through either upgrading resources or acquisition.

The Company is currently undertaking resource definition programmes to ensure that all of these principal projects will have JORC standard resources in accordance with the time frames set out in this document.

The Directors believe that the total iron ore concentrate production capacity of the Group’s four principal projects (on a 100% basis) has the potential to rise from 0.4Mtpa in 2009 to 14Mtpa in 2014 and to in excess of 20Mtpa in 2018:

• Sierra Leone – sinter feed : 1.5Mtpa in 2011 to in excess of 3Mtpa in 2013

• Saudi Arabia – DR pellets : 5Mtpa in 2013 to 10Mtpa in 2017

• Greenland – DR pellet feed : 5Mtpa in 2014 to 10Mtpa in 2018

• China – magnetite concentrate : 0.4Mtpa in 2009 to 1Mtpa in 2011

(Source: Company estimates)

The strategy of London Mining is to focus its activities on deliverable iron ore projects, where the key features are scalable production, financing opportunities and a clear route to market. The ability to accelerate projects through to efficient producing mines, utilizing its experienced technical and operating team, is an important part of the Company’s strategy.

The Group’s principal projects range from late stage exploration projects, through a brownfield site to an under-optimized producing mine, all of which the Company intends to develop to be efficient producing mines. All of the Group’s principal assets have an ore body and logistics solution which allow for production to be initiated and/or expanded in phases. The logistics solution primarily focuses on workable port locations with available land and with the ability to load, either directly or via transhipment, to ocean going vessels. The port locations are all within approximately 100km of the proposed mine site for all of the existing principal projects with the exception of China, where the product is largely sold at the mine gate, hence transportation costs are low. Currently, London Mining’s target markets are the MENA countries and China, and all of the principal assets are able to supply one or both of these markets.

The Company has an experienced management and technical team. The iron ore assets are managed by in country project directors aided by a technical services team headed by the Company’s Chief Operating Officer, Luciano Ramos and comprising seven people with expertise in geology, metallurgy and mine engineering. The technical services team is focused on delivering low-cost, fast track solutions to production. The iron ore assets are overseen by the Company’s management team in London, which focuses on head office functions including funding, off-take agreements and corporate development opportunities.

London Mining Developing Mines

London Mining

Plc is developing mines to supply the global steel industry. The Company has iron ore exploration and development projects located in Sierra Leone, Saudi Arabia, Greenland, China and Chile, and a coking coal project in Colombia. The Company’s products include pellet feed, P1 sinter feed / P2 sinter/pellet and DR pellets. The Marampa mine is a 13.82 square kilometers brownfields site. The Company focuses to develop Marampa in two phases. The Wadi Sawawin Project is located in the north-west corner of Saudi Arabia, 125 kilometers from Tabuk and 60 kilometers from the Red Sea port of Duba. Greenland includes the Isua Project. Isua is located 150 kilometers Northeast of Nuuk. Isua will produce a 70% Fe pellet feed concentrate. London Mining had completed three seasons of exploration drilling on the Isua Project.

Welcome to London Mining

London Mining is producing from its Marampa Mine in Sierra Leone and developing two other iron ore mines in Saudi Arabia and Greenland as well as a coking operation in Colombia. All London Mining’s assets have deliverable production with potential for expansion. The Company listed on AIM in London on 6 November 2009. It trades under the symbols LOND.L (Reuters) and LOND LN (Bloomberg).