26th Nov 2013 13:22
LONDON (Alliance News) - Sable Mining Africa Limited Tuesday said its subsidiary West Africa Exploration S.A. has entered into a memorandum of understanding with the Government of Liberia.
The AIM-listed iron-ore exploration mining company said the deal would enable the parties to conduct discussions and negotiations over a binding infrastructure development agreement for the purposes of exporting iron ore products from the Nimba project in the Republic of Guinea.
The company said the deal would relate to the use and operation of both rail and port infrastructure by WAE and the deal should progress the Nimba Project towards commencement of operations in 2015.
Sable was granted its export decree in October from the Republic of Guinea to transport iron ore from its flagship Nimba project through Liberia to the port of Buchanan.
The Nimba site is located just 30 kilometres from a multi-user standard gauge railway which Sable hopes would take the iron-ore through Liberia to the port of Buchanan.
There had been questions over how possible use of the railway was, considering it is currently used by Alcelor Mittal, the steel producing giant who told Alliance News that the single-track line doesn't have capacity, especially once it ramps up production at its Liberian operations to 15 million tonnes a year, from 4 million, in 2015.
Sable Mining shares were down 3.2% to 10.17 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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