SUPER AMBITION – Have you seen Bong Mine Lately?!

... It will likely take the better part of 18 months just to get a pellet plant back on line. Best of luck! (see story)

Monday, 26 Jan, 2009 Liberia expects Bong iron ore production in 18 months Reuters reported that the first productions of iron ore pellets from China Union's USD 2.6 billion Bong development project in Liberia is expected within 18 months.

Mr Richard Tolbert chairman of Liberian National Investment Commission said that the full USD 2.6 billion capital investment by China Union would be disbursed over a period of between 8 to 10 years.

He added that the contract signed this week between China Union and the Liberian government foresees 25 years of iron ore production from the Bong deposit, which is estimated to contain 300 million tonnes of low grade ore.

Mr Tolbert further said that "Within 18 months, we will see the first one million tonne palletizing plant up and running." He added China Union had also been granted a license to explore for ore in an area adjoining the Bong deposit, which would open the possibility of increasing the ore resource.

The deal, which beat 9 rival bids, went ahead at a time when many firms have scaled back or postponed African mining projects as metals prices have crashed in the past six months.

Ms Ellen Johnson Sirleaf, President of Liberia, at a ceremony to mark the signing, said that she hoped the China Union deal would encourage other investors to come to Liberia, which is still struggling to recover from a destructive 1989-2003 civil war.

Under its contract to mine the Bong deposit, which lies to the north east of the capital Monrovia, China Union intends to recondition the capital's port and build a hydro power plant to supply the city with electricity. The contract includes a USD 40 million cash signature fee to be paid to Liberia once its parliament ratifies the contract and it is promulgated. This was expected in the coming months.

(Sourced from Reuters)
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