African Minerals Limited (AML) with the largest iron ore deposit in Africa is well positioned in its global location to capture and supply the steel markets in both Europe and the Far East.
Last Friday, the company received its license after Parliamentary ratification, giving it the right to mine and export mineral deposits in its 227 square kilometer concession area with 45 million tonnes per annum (mtpa) magnetite iron ore production.
“The decision reached in Parliament was remarkable. It will serve as a boost to President Ernest Bai Koroma’s Agenda for Change, which requires revenue generated locally from such arrangements,” the Chairman Committee on Mines and Mineral Resources Chernoh Bah said.
The company now looks set to capture over 3% of the world’s export iron ore market based in its strong relationship with the steel industry in East Asia. Chinese steel is primarily supported by blast furnace hot metal production which depends on good quality iron ore (68% Fe) as a raw material feed.
This puts African Minerals in the best position as an exporter. The company’s iron ore product contains consistent, low impurity, high grade (70% Fe) iron concentrate, resulting in a favourably lower priced, higher quality iron ore product that meets steel mills’ quality requirements.
Meanwhile, the Minister of Mineral Resources Alhaji Alpha Kanu said the license acquisition creates the foundation for sustainable social and economic development in the country.
“The company will be paying 25% Corporate Tax with 5% concession. The good news is that they will be working on the biggest iron ore deposit in Africa, which means a huge potential for the country’s