London Mining has secured a 30-year exploitation licence for its Isua iron ore project in Greenland, Denmark.
Located 150km north-east of Nuuk in Greenland, the mine is expected to produce 15 million tones of iron pellet feed concentrate per year.
The company said the ore concentrate could be shipped year round from a dedicated deep water port.
London Mining has completed detailed environmental and social impact assessments, which have been subject to public consultation as part of the permitting process.
As part of the licence, London Mining has agreed to incorporate a royalty structure with the Government of Greenland, based on sales and tax rates for more than 16 years.
London Mining chief executive officer Graeme Hossie said the licence was received after many years of exploration and development work.
“Isua is an important project for Greenland and its development will help deliver key objectives for Greenland of economic growth and diversification from sustainable mining activity,” Hossie said.
“Although new projects in iron ore currently do face funding challenges, we believe Isua’s high-quality product segment will become increasingly important to steelmakers to balance the growth in lower quality iron ore supply and the increasing importance of pellets in the evolving iron ore market.”
London Mining started sales from its Marampa Mine in Sierra Leone in 2012 and anticipates reaching production capacity of 6Mdmt/a in 2014.
Image: The Isua mine is expected to produce 15 million tones of iron pellet feed concentrate per year. Photo: Courtesy of London Mining.