LIBERIAN IRON ORE PROJECTS

Liberian Iron Ore (LIO) proposal for the development of the Western Liberia Iron Ore Cluster, comprising the iron occurrences at the Bomi-West, Bea and Mano River Mountains, and adjacent areas as may become available.

LIO believes that it will provide the best solution for Liberia in advancing the Western Iron Ore Cluster:

  • by developing the iron ore deposits progressively so that those which can be brought into production early are progressed immediately, and those which require more study and development are progressed later;

  • by bringing together an appropriate mix of world class skills combined with a highly focussed approach - which will maximise the benefits to Liberia in re- developing these resources - and at the same time providing a reasonable return to its shareholders, many of whom it is hoped will be Liberians;

  • by ensuring that the benefits will not only accrue in the normal manner of royalties and taxes collected from the operations, but more particularly from the benefits to be gained by a focussed approach to the development of excellent relationships with local communities by careful attention to two way communications and a broad based support for the social, educational and sporting activities of the local communities;

  • by developing the operations in a manner designed specifically to be suited to Liberia’s current and developing industrial situation; and

  • by supporting the re-establishment of a sustainable iron ore mining and processing industry in the region in a manner and at a pace that is best suited to Liberia and its people.

As a single purpose company, LIO has no other interests, and in particular, it does not need to consider the requirements of other operations or the wider corporate requirements of a multi- national or multi-operation company. At the same time, because LIO has directors and managers with a very extensive Liberian, African and International experience, it is able to recognise - and has the capability to access - the very best available technology and expertise available worldwide in the mining industry and apply it in a manner which best suits Liberia’s current needs.

LIO sees the developments best undertaken in several phases. While it needs to be said that with so little information available to bidders these stages cannot be certain, from the information available these would seem to be feasible and would support LIO’s desire to make an early start while also making best use of the resources in the long term.

Stage 1

  1. Feasibility Study of Bomi Initial Production and
  2. preparation and planning for the Full Production Feasibility Study;

Stage 2

  1. establishment of the Bomi Initial Production operation and
  2. completion of Exploration and Ore Reserves determination;
  3. substantial completion of Bankable Feasibility Study for Full Production;
  4. completion of Environmental and Social Impact Assessment studies and reports for Full Production;

Stage 3

  1. Completion of public consultation programme; and
  2. securing of all Development and Production approvals for Full Production;
  3. project financing and equity raising for Full Production;

Stage 4

  1. final design, procurement and construction for Full Production;
  2. commissioning and build up to Full Production;

Stage 5

  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.

The first phase is aimed at making an early start on re-habilitating the essential infrastructure and starting the mining and export of direct shipment ore. When this is under way, then the careful and comprehensive evaluation of the ore bodies and how they might best be exploited will be undertaken. This will lead onto the development of detailed feasibility and optimisation studies, and the associated Environmental, Social and Strategic studies that are essential for the large scale, long life operations (called Full Production in this proposal). Once this is complete and the requisite licences and approvals for the Full Production operations are in place, the financing, design, construction and commissioning of these operations will be implemented as quickly as possible.

In all these phases, LIO will be actively engaged in the social interaction so necessary for a stable long term operation, and in capacity building in the people who will operate the mines and their associated support facilities and services. This will not only include specific training and development of personnel for LIO’s needs, but will also include support and encouragement for all the social, commercial and services activities that will be needed by LIO company and the community as the operations are developed.