(Photo by Guy Debonnet | UNESCO.)
High Power Exploration (HPX) raised $200 million for its proposed Nimba iron ore mine in the Guinean Nimba Mountains, classified as a strict nature reserve in 1944 and then as a World Heritage Site in 1981-82 for being home to globally threatened and endemic species.
The boundary of the reserve and World Heritage Site was modified in 1993 to exclude a keyhole-shaped area to allow mining in the proposed project area.
HFX will only be able to secure the environmental permits needed to start construction if the World Heritage Committee approves it.
HFX will only be able to secure the environmental permits needed to start construction if the World Heritage Committee approves it.
Friedland has already taken provisions to cover himself from the underlying political risks: HFX said that the World Bank’s insurance arm, known as the Multilateral Investment Guarantee Agency (MIGA), has provided the project with political risk cover!
Friedland-backed HPX to fast-track Guinea iron ore project - The Northern Miner
Billionaire Robert Friedland-backed High Power Exploration (HPX) said on March 8 that it had raised US$200 million for its proposed Nimba iron ore mine in southeastern Guinea, home to some of the world’s highest-grade deposits, including the giant Simandou.The funds received will enable the Canadian company to fast-track development of the project, which is expected to produce an initial 15 million tonnes of iron ore a year, with exports starting by 2025-2026.
The proposed open-pit is located in the Guinean Nimba Mountains, classified as a strict nature reserve in 1944 and then as a World Heritage Site in 1981-82 for being home to globally threatened and endemic species.
The boundary of the reserve and World Heritage Site was modified in 1993 to exclude a keyhole-shaped area to allow mining in the proposed project area.
The modification doesn’t make Nimba’s path to production smooth. HFX will only be able to secure the environmental permits needed to start construction if the World Heritage Committee approves it.
There is also an underlying political risk,as resource nationalism has spiked in more than 30 countries over the last year, particularly among key producers of minerals and hydrocarbons.
Mining veteran Friedland has already taken provisions. HFX said that the World Bank’s insurance arm, known as the Multilateral Investment Guarantee Agency (MIGA), has provided the project with political risk cover.
“The policies will cover political risks which arise in either the Republic of Guinea or the Republic of Liberia in relation to 90% of the equity and principal on the shareholder loans HPX has already invested,” the company said in a news release.
MIGA’s protection also cover investments over the development phase and the Guinean and Liberian subsidiaries involved in the Nimba project’s development, HPX noted.
Vancouver-based HPX acquired the iron ore deposit in September 2019. Based on a 2015 report by the United States Geological Survey (USGS), Nimba holds roughly one billion tonnes of high-grade iron ore.
At full-tilt, the mine is expected to churn out 30 million tonnes of high-grade iron ore a year.
Guinea has some of the world’s highest grade iron ore, including the giant Simandou deposit.
Read the whole story here: Friedland-backed HPX to fast-track Guinea iron ore project - The Northern Miner
No comments:
Post a Comment
Commented on MasterMetals