May 17, 2020

REPORT: Anglo American Boosts Iron Ore Output Production in Q3

Anglo American
BHP Billiton
Rio Tinto
Iron ore
2 min
REPORT: Anglo American Boosts Iron Ore Output Production in Q3
The third quarter of 2014 was a good one for mining company Anglo American(LSE:AAL) (JSE:AGL).The London-listed company increased its iron ore productio...

The third quarter of 2014 was a good one for mining company Anglo American (LSE:AAL) (JSE:AGL).

The London-listed company increased its iron ore production significantly in Q3, producing roughly 13 million tons of the steel ingredient. The 37 percent rise in output puts Anglo American on the same page as BHP Billiton and Rio Tinto, both of which recently released figures showing their continued increase in iron ore output.

The rise in production is thanks in part to Anglo’s Kumba Iron Ore Ltd., which implemented a turnaround plan after falling grades at its Sishen mine in South Africa. The mine is the continent’s largest producer for iron ore.

"The iron ore increase shows the redesign of the Sishen mine is taking place and is happening a bit faster that we thought," said Macquarie analyst Jeff Largey.

According to a statement by Anglo American, the company’s Minas-Rio iron ore mine in Brazil continues to make progress in delivering production.

“Work on the Minas Rio project continues, with significant progress made to deliver first ore on ship. Commissioning and testing activities are ongoing, ore stockpiles are being built at the Port of Acu and first ore loading has begun.”

Iron ore accounted for nearly 40 percent of Anglo’s operating profit in the first half.

"It's a good performance. They lifted guidance across most commodities so it is a pretty solid result," said Investec analyst Marc Elliott.

Despite lifting production numbers, the company remains skeptical on whether increases in iron ore will affect the market. In an interview with The Wall Street Journal last month, Anglo’s Chief Executive Mark Cutifani confessed his fears about the outlook for the iron ore market amid signs the global supply glut won’t subside any time soon.

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May 11, 2021

Gerald Group resolves iron ore dispute with Sierra Leone

Gerald Group
SL Mining
Iron ore
Marampa iron ore mine
2 min
Gerald Group, the US commodity broker, set to restart iron ore shipments from Marampa mine with subsidiary SL Mining

Gerald Group, the US commodity trader, will pay Sierra Leone $20mn and cede a 10% stake in an iron ore project as part of the resolution to a nearly two-year dispute that led to the shutdown of production, the two sides revealed.

SL Mining

Gerald's wholly-owned subsidiary SL Mining filed for arbitration in August 2019 over a royalty payment dispute and suspended the Marampa mine the following month. Sierra Leone's government responded by cancelling its mining licence. 

As part of the agreement signed on Friday, Sierra Leone will take a non-dilutable 10% stake in a new company that will replace SL Mining and resume operations at Marampa by June 1, Gerald said in a statement.

Iron Ore

Gerald will make two $10mn payments this year and will have the immediate right to ship its current stockpile of about 707,000 tonnes of iron ore, it said.

Both sides will withdraw their legal claims before the International Chamber of Commerce (ICC) and International Centre for Settlement of Investment Disputes (ICSID), the statement added.

Gerald’s chairman and CEO Craig Dean commented: "I am delighted that we have been able to resolve our differences and have a fresh start and new beginning with the government of Sierra Leone."

SL Mining

Sierra Leone

Sierra Leone's Mines Minister Timothy Kabba told a news conference on Tuesday that the agreement was a milestone for the country.

"Whatever the pain we may have borne or dreaded throughout these two years ... this outcome justifies our action," he said.

Gerald estimates that Marampa holds about 1 billion tonnes of iron ore with a potential lifespan of 30 years.

Gerald Group

Back in 2019, Dean spoke with Mining about the development of Marampa and commented: "SL Mining offers a substantial opportunity for Gerald Group as our Marampa mine in Sierra Leone is set to deliver six million tonnes of high-grade iron ore during its operational life. If you analyse the iron ore market it has transformed, even from a couple of years ago when prices were very low. Now prices have stabilised we’re in a favourable position with our first shipments leaving for China.

"Our goal is to make ‘Marampa Blue’ an internationally recognised premium grade iron ore brand. We intend to expand the delivery of high-grade 65% iron ore concentrate to markets in Europe and Africa.”

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