Gerald Group’s Sierra Leone mine ships iron ore to China after restart
Gerald Group’s subsidiary Marampa Mines Limited restarted mining and processing on September 1 after the trader resolved a dispute with the Sierra Leonean government that led it to shut down the mine in September 2019.
Gerald Group paid the government $ 10 million as a first installment of the $ 20 million payment agreed to as part of the settlement, he said on Friday.
Marampa will increase production of iron ore concentrate from 2 million tonnes per year to 3.25 million tonnes per year within 12 months, the company said.
Marampa’s first capesize ship – the largest cargo ships – set sail Thursday evening carrying more than 175,000 wet metric tonnes of iron ore concentrate.
âLoading capesize ships will dramatically improve the efficiency of our overall supply chain, a key objective not only to reduce our operating costs, but also to advance our ESG plan and minimize our carbon footprint,â said FrÃ©dÃ©ric Lotti, COO of Marampa Mines.
Prices for iron ore, which is the main ingredient in steel production, have skyrocketed over the past year to record highs of $ 240 per tonne in May, driven by strong demand from China .
China is looking for new sources of iron ore in a trade war with its main supplier, Australia. Botswana was a recent addition to China’s growing list of suppliers.
(Reporting by Helen Reid; Editing by Mark Potter)