On the re-opening of SLPP Office … “We would never encourage violence” John Benjamin...

Sierra Leone News: As mining companies tumble …Cape Lambert in trouble

cape lambertThe labour dispute in former London Mining which is now Timis Mining seems to have a far reaching effect than earlier envisaged.
With workers of Timis Mining getting ready to take the company to court over alleged historic unpaid benefits due workers by the former company – London Mining, the effect has now stretched to Cape Lambert Resources another Iron Ore mining company which had farmed into the London Mining buy over.
Lately Cape Lambert announced that a royalty deal struck last year with Frank Timis’ of Timis Mining had hit problems, with mining of the Marampa project being suspended because of issues “that appear to relate to sabotage”.
Timis Mining bought the project from London Mining last year and was using infrastructure built by Mr Timis’ African Minerals – itself in administration – to export iron ore.
Cape Lambert bought into the deal in October, offering Timis Mining an $8 million bridging loan and paying $12 million for a four-year royalty from the project worth $2 per tonne.
But Timis Mining has been embroiled in an increasingly heated dispute with its workforce. It is unclear whether the alleged sabotage at Marampa relates to the labour dispute.
Cape Lambert received a $400,000 royalty payment in January, and its shares fell last Tuesday.
As a result, Cape Lambert Resources’ $20 million investment in the Marampa iron ore project has struck problems, signaling fresh worries for chairman Tony Sage.
Friday April 24, 2015

Comments are closed.