The JV between London Mining plc, on behalf of Saudi London Iron (SLI), and Saudi Arabia-based National Mining Co. has reported key findings from its feasibility study on the first 5 million tonne per annum phase of SLI’s planned iron ore mining and palletizing operation in Saudi Arabia. Key findings from a market study on the same project regarding long-term iron supply needs in the Middle East and North African region have also been reported. The feasibility study shows that the Wadi Sawawin mining, beneficiation and 5 million tonne per annum DR pellet production project is feasible with a NPV of USD 1.6 billion. The key financials from the feasibility study indicate a potential NPV of USD 1.6 billion, even with conservative inputs and a higher than ultimately anticipated CAPEX of USD 1.8 billion. In addition, the findings in the Market Study confirm possible pricing improvements over modeled long-term pellet prices of USD 115pt FOB Red Sea, which would further improve the project economics. The first phase of the project is for 11.6 million tonne per annum open pit mine, a 60km slurry pipeline to beneficiation and palletizing facilities on the Red Sea, which will produce 5 million tonne per annum of DR pellets.
