StockMarketWire.com - Sir Nicholas Bonsor, deputy chairman of London Mining, told shareholders at its AGM that the company had started the year well.

He said: "Turning to each of our assets, at Marampa, we are pleased to say that the plant is successfully processing tailings and weathered ore to a consistent high quality and we are on track to achieve our full year target of 1.5Mtpa of iron ore concentrate. The logistics from mine to ship have been proven to work as designed and over the first quarter we produced 300,000 dry metric tonnes of iron ore and shipped over 230,000 dry metric tonnes to Europe and China.

"This was shipped in five Supramax vessels, four of which went to China and one to Europe. Since the end of the quarter, we have successfully reached an average run rate of 4,300 tonnes per day which is in line with our ramp up plans and puts us firmly on track to reach the 2012 production target.

"Expansion works at the first plant continues apace, and we have commenced works for the second plant which when combined together will ensure we continue to grow capacity at Marampa and reach our production targets of 1.5Mt in 2012, 4.2Mt in 2013 and 5Mt in 2014.

"Work on the Bankable Feasibility Study for a further expansion to 9Mtpa is expected to be completed in the third quarter of this year, with completion of the Environmental and Social Impact Assessments expected after that sometime in the fourth quarter.

"In Colombia, construction of the coke ovens continues although we were severely hampered by the unexpected rains caused by La Nina. None the less we produced 5,800 tonnes over the quarter. We have caught up some lost ground and we continue to aim for our target of 200,000 tonnes production capacity in the first phase. We are also exploring and undertaking feasibility studies on nearby coking coal concessions.

"Briefly turning to Isua, as we announced on 29 March, we have now completed the BFS for a 15Mtpa operation. The BFS defined a three year construction period to begin producing 70% Fe premium grade iron ore pellet feed with a payback period of 3.5 years. Since the BFS, we have commenced the permitting process.

"To realise our growth plans we know we must continue to attract and retain talented people and also ensure that the communities and countries in which we operate are able to see tangible and long-lasting benefits from our activities. We are particularly proud to provide employment and training for over 2,000 Sierra Leoneans.

"2012 is significant as we will contribute directly to the economy of Sierra Leone through payments of royalty and taxes to the Government of Sierra Leone; and indirectly through our social development royalty, local employment and local supply chain initiatives.

"As we enter a new phase of operations, construction and development we are ever more appreciative of the need to minimise the impact of our operations to the surrounding environment and communities and to keep our employees safe."

At 10:46am: (LON:LOND) share price was -3.62p at 242.63p


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