Sierra Leone Mines to Receive $3 Billion of Investment in Next Three Years

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Four British and Irish mining companies are planning to invest $3 billion in four mining projects in the West African nation of Sierra Leone with an eye on the Chinese market. The companies include African Minerals Limited (LSE:AMI) (St Peter Port, Guernsey), Cluff Gold plc (LSE:CLF) (London, England), London Mining plc (OSL:LOND) (London), and Moydow Mines International Incorporated (Dublin, Ireland).

African Minerals has appointed WorleyParsons Europe (Brentford, England) to conduct a combined definitive feasibility study (DFS) and front end-engineering and design (FEED) on the company's Tonkolili iron ore project in the Sula Mountains, near Makeni in the northern part of Sierra Leone. Tonkolili is a world-class hematite deposit that will require capital investment of more than $2.6 billion. Development of the mine will also involve the upgrade of the Pepel Port facility, and construction of a rail hub and a haul road from Tonkolili to Lunsar. With both the DFS and FEED scheduled to be completed by October, main construction activities are expected to begin by early next year, so that the mine can go into operation in early 2013.

Cluff Gold, a pan-African gold group, is the driving force behind the development of the Baomahun Gold Project, located 180 kilometers east of Sierra Leone's capital, Freetown. Cluff Gold has 100% ownership in the Baomahun gold project through 25-year mining leases obtained in 2008. Cluff Gold plans to mine Baomahun as a combined open-pit and underground mining operation with ore process through a carbon-in-leach plant. The initial cost of the operation is pegged at $100 million.

London Mining will soon start work on expanding the output at the Marampa iron ore project in Sierra Leone between 3 million and 8 million tons per year. London Mining intends to spend $150 million to reopen and expand the mine. Work will begin with the processing of the old Marampa Tailings, which was closed in 1985, while mining of new ore will be phased in as the mine reaches full production. A two-stage wet high-intensity magnetic separation milling circuit is the chosen method on this site. London Mining wants to bring this site into production by the fourth quarter of 2011.

Moydow Mines International Incorporated was working on the development of the Port Loko bauxite project until recently, when the company was acquired by Franco-Nevada Corporation (TSX:FNV) (Toronto, Ontario), a gold-focus royalty company. Franco-Nevada's main interest was in Moydow's stake in the Ahafo gold project in Ghana. Franco-Nevada now maintains Moydow as a subsidiary, while the non-gold assets such as the Port Loko bauxite project have been moved to a private company headed by Brian Kierman, former CEO of Moydow. Now that the acquisition of Moydow is completed, the development of the Port Loko project will continue under this arrangement.

In addition to the foreign investment these projects will bring to Sierra Leone, the local communities stand to benefit from the schools, health care facilities and thousands of jobs involved in projects of these magnitudes.

View Project Report - 200006810 84800005 200006594 84800002

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy related markets. For more than 26 years, Industrial Info has provided plant and project spending opportunity databases, market forecasts, high resolution maps, and daily industry news.