Sierra Leone's SL Mining will suspend operations at its Marampa iron ore mine in Lunsar, following a disagreement with the country's government over royalty payments.
This comes after a dispute in August between SL Mining and the government over whether the mining firm was in compliance with the country's mines and mineral act, which resulted in the government banning its exports. The suspension has been communicated to the employees in a confidential notice from Gerald Group, SL Mining's parent company.
"The company is disappointed and concerned that the government appears unwilling at present to seriously engage or commit to any process with a view to resolving the unlawful and indefinite export ban," the Gerald Group said.
SL Mining shipped its first iron ore cargo from the port of Freetown to China in June. The shipment contained 55,000t of Marampa Blue iron ore concentrate, which will have more than 65pc Fe.
The mine was idled in the wake of falling seaborne iron ore prices in 2014, but stronger market conditions in recent years have paved the way for its restart. Production at Sierra Leone's Marampa mine was ramping up earlier this year after the completion of a first-phase investment programme to rehabilitate the site.
Gerald Group committed to spend around $300mn on the first and second phases of the Marampa mine's revival, bringing output to 2mn t/yr in phase one and 6mn t/yr in phase two. It has overall iron ore reserves of around 1bn t.
