OUR APPROACH : Technical & Operational Delivery Plan

LIO sees the optimum development of the Western Iron Ore Cluster as best being undertaken in five stages.  This is seen as prudent and responsible in that it seeks to combine the desire to make early, visible progress without compromising the thorough and careful development of long term operations that would make best use of the ore bodies.  It also addresses the fact that little reliable information is available at this time.

Stage 1

In this stage a significant effort is to be made in sourcing whatever information on the ore bodies and previous operations is available and then developing a sensible plan for the very early operations and the work required for the technical and commercial feasibility, environmental and other studies required to secure approvals and financing for the Full Scale Operations.  This stage would be funded from the seed capital and at the end of the stage the initial listing of LIO would take place.

  1. Feasibility of Bomi Initial Production including:-
    • determining accurately what ore is available for direct shipping,
    • the costs and methods of trucking it to the coast,
    • the shipping costs and markets for this product
    • determining what other ore may be readily mined;
    • what beneficiation may be required for this additional ore to be profitably marketed;
    • determining the feasibility of trucking (or railing), shipping and selling this additional ore.
  2. Preparation and planning for the Full Production Feasibility Study:-
    • completing the initial reconnaissance necessary to scope the feasibility study for the  Full Production case;
    • assessing the drilling and other requirements to gather the data required for a feasibility study;
    • securing proposals and assembling the plans for the completion of the Feasibility Study, and the Environmental and Social Assessment Reports
  3. List LIO on the London stock exchange and raise the capital for the next stages.

Stage 2

In this stage the initial operations are planned to be started on a small scale and the substantial amount of work required to carry out the geological and other studies required to prepare for the Full Production stage are completed.

  1. Establishment of the Bomi Initial Production operation:-
    • initially trucking direct shipping ore to Monrovia;
    • moving on later to the beneficiation (if required ) of the ore and its export through Monrovia
  2. Exploration and Ore Reserves determination:-
    • ore reserves determination principally in the areas of Mano River and Bea Mountain to establish the principal platform for the feasibility study
    • reconnaissance exploration in all areas to determine any targets for later follow up and to design the long term plans for exploration and ore extraction
  3. Substantial completion of Bankable Feasibility Study for Full Production:-
    • development of the basic mine plans
    • determination of the proposed processing routes and marketing strategies
    • basic design of all the mining and processing facilities required
    • scoping and basic design of the infrastructure required
    • searching for and securing any assistance with infrastructure development
    • determination of all capital and operating costs
    • completion of basic economic modeling
  4. Environmental and Social Impact Assessment studies and reports for Full Production:-
    • collection and assembly of all baseline data required;
    • conduct of initial social studies
    • preparation and assembly of all relevant environmental and social impact assessment studies based on the material generated in c) above
    •  preparation of material required for public consultation processes

Stage 3

In this stage the work completed in Stage 2 is presented for all the approvals required and once this is done the project funding is sought.  The timing of the activities in this stage are important in that it is in this stage that time can be lost.  LIO’s plans for the initial production, started in Stage 2, are for it to continue long enough for a smooth transition from limited operations to full operations to occur smoothly.   However, in Stage 3 matters are substantially outside the control of the company and support from government is most important in this phase if the Project outcomes are to be achieved.

  1. Completion of public consultation programme;
    • Presentation of the proposals to all affected parties and the collection of questions in relation to the proposed development and operations themselves or their impact on the community or the environment;
    • Modification and updating of the Environmental and Social Impact Assessment report to reflect the questions raised and any resulting changes made by the proponent.
  2. Securing of all Development and Production approvals for Full Production;
    • determination by the competent authorities of the terms of those  licences to be issued for development and operation;
    • negotiation of any terms associated with the licences.
  3. Project financing and equity raising for Full Production;
    • identification, setting of terms and briefing of the lending consortium;
    • review by lenders of the completed feasibility and other studies and the   terms of  the licences granted;
    • negotiation, determination and settling of lenders’ terms;
    • briefing of equity investors on the project, its licences & approvals and lenders’ terms;
    • issue of new equity to complete the financing (“Financial Close”).

Stage 4

In this stage the most obvious changes occur with the preparation for full scale mining operations, the design and construction of the mining and processing facilities and the installation of the infrastructure.  It is in this stage that the major employment opportunities occur, although the bulk of the jobs in this phase are short lived and specialised.

At the end of this phase the permanent staff take over the operations and the business is settled into a steady state as quickly as possible.

  1. Final design, procurement and construction of all facilities for Full Production;
    • the mine pre-production development
    • the construction of the processing plants;
    • the construction and commissioning of all the infrastructure added as part of the project;
  2. Preparation of staff for operations;
    • build up of permanent staff for the expanded operations;
    • training of additional staff;
  3. Commissioning and build up to Full Production;
    • commissioning and start up of all the new facilities
    • gradual build up to full production

Stage 5

This is a phase of indeterminate duration.  While full production continues, it will be LIO’s specific objective to continually improve the safety, efficiency environmental profile and profitability of the operations while it maintains:-

  1. Full Production from all relevant areas;
  2. ongoing review & optimisation and continuous improvement of operations; and
  3. ongoing investigations into viable value adding business developments or expansion opportunities.  Examples of this might include:-
    • Developing associations with other iron ore producing regions in Liberia and/or possibly in neighbouring countries;
    • Optimising the infrastructure by establishing new or additional railways and/or ports (such as at Roberts Port for example);
    • Investigating the options for further processing of ore to add value in country