African Minerals and London Mining to negotiate? 24 October...

African Minerals and London Mining to negotiate?

24 October 2008 10:45

Junior miners African Minerals and London Mining will be heading to the negotiating table to resolve a dispute regarding their respective Marampa licence areas in Sierra Leone, Cape Lambert ceo Tony Sage told Hotline last week.

Cape Lambert bought a 30% stake in African Minerals’ Marampa iron ore exploration project earlier this month. Sage said he expects the two parties to reach a “commercial agreement” on the matter rather than continue with the legal proceedings currently underway, but both companies denied that they have scheduled a meeting.

The disputed land constitutes about 30% of London Mining’s licensed area and is reportedly worth at least $500 million. The two parties are also at loggerheads over dilapidated port and railway infrastructure, with the Sierra Leonean government seemingly backtracking on a MoU signed with London Mining in 2007.

The government is expected to make an announcement on the infrastructure, allegedly involving a 99-year lease with African Minerals, within the “next week or two”, Sage said.