London Mining Staged Development Program

The current  Marampa  operation is processing  a combination of   tailing   from previous operations  and highly weathered in situ material. London Mining aim s to  expand  this  plant  to  achieve  a  production  rate of 5  Mtpa  of  premium  sinter concentrate by the end of 2013. Capital expenditure to install the initial 5 Mtpa  of capacity is expected to  be  USD  320m (USD64/annual tonne  of capacity) of which USD163m was spent to  achieve  first production. Initial production from the first of two  plants  has  commenced with  production  of 1.5 Mt expected  in 2012

A  second processing  plant  is to be commissioned in Q1  2013  resulting in installed  capacity  of  3.6  Mtpa  or  300 kt/month. Gravity circuits will   be added to  both plants which should result in installed capacity of 5Mtpa in Q3 2013. All logistics required  to  load ocean  going  vessels, including   the  haul  road,  river   port and   barging  operation  have   commissioned.  Further  investment  of   USD 250m will enable the  5Mtpa plant  to  process all ore types following  the exhaustion of the tailings resource in 2017. This would extend the mine life to over 30 years.

London Mining is a signatory of several initiatives to show our commitment to  becoming a   fully  sustainable  and responsible  company.These   initiatives enable the global community to monitor our performance and progress against internationally recognised best practice.By doing this, we align our operations with international  standards  and  industry  best  practice. It  also  helps  us  to continue  to  reassess  our  progress  and  track  our  path towards becoming a flagship company among our peers.

A value engineering process is underway which will include a further review of cost estimates for 9 Mtpa based on  alternative tailings disposal solutions  and use   of  contract  mining  which   could realise  potential  capital   expenditure savings  of  an   estimated  USD 140m. Other   scenarios    including  a   second expansion to over  16 Mtpa   and  further  investment  in   logistics including a deep water port and  use  of  pipeline  or  rail  transportation  are also  being considered.

Flooding are the most common form of natural disaster in the UK and are now part and parcel of the British winter months; widespread flooding happens at least once a year in the UK. Earlier this year, torrents of rain hit the UK, with Cumbria the worst-affected area; heavy, prolonged rainfall caused bridges and road networks to collapse and four people lost their lives. In 2007, Yorkshire was hit hard by floods and some people  are  still  recovering  from  the destruction caused by the floods three years later; the floods killed six people and left hundreds of people homeless and thousands without electricity.