.gif?width=220&height=200&mediaprotectionhash=b13da841472e6e7ed500ee35df2a350aaf53d75246118b33ea2095cc7e9a3fc4&ext=.gif)
Severstal’s Putu Iron Ore Resource Estimated at 3.2 Billion Tonnes
07/12/2011 - An independent mineral resource report has estimated a 3.2 billion tonnes deposit at the Putu iron ore project in Liberia, of which OAO Severstal is the majority stakeholder.
An independent mineral resource report has estimated a 3.2 billion tonnes deposit at OAO Severstal's Putu iron ore project in Liberia. Severstal is the majority stakeholder in the project with a 61.5% interest and Afferro Mining Inc. has a 38.5% stake.
An independent mineral resource report completed in February 2011 had estimated 2.4 billion tonnes of iron ore at 34% total Fe for the 13 km long iron rich ridge. The National Instrument 43−101 compliant report issued by independent engineers SRK Consulting reflects a 36% increase compared to the previous estimated size of the resource in the existing pit at Putu.
“The estimated increase in the resource places Putu among the largest deposits of iron ore in West Africa,” commented Boris Granovsky, Head of Strategy for Severstal Resources. “We are planning to prepare the preliminary and final feasibility studies of the Putu project to start-up the operations ahead of schedule.”
A Mineral Development Agreement detailing the fiscal and legal terms for development and mining of the Putu iron ore deposit was granted and ratified by the Government of Liberia on September 9, 2010. The Agreement term is for a period of 25 years and this can be extended further in line with the life of mine. Severstal has held a 61.5% interest in the project since 2008.
Severstal is one of the world’s leading vertically integrated steel and mining companies with key assets in Russia, the US and Europe.
