Rail and Port Infrastructure
Bellzone reaches MOU for Kalia Iron Project Rail & Port Infrastructure
31.05.2010 | Deskman: Marcel Dröttboom
West Perth, Australia – Bellzone Mining, an iron ore company developing the 2.4 billion tonne JORC magnetite Kalia Iron Project along the company estimated 13 billion tonne Kalia magnetite deposit in Guinea, West Africa, is pleased to announce it has reached a Binding Memorandum of Understanding with China International Fund with regards to the financing of the rail and port infrastructure required for the Kalia Iron Project.
The Binding Memorandum of Understanding (MOU) is subject to the parties agreeing and executing definitive agreements for the infrastructure company, joint venture agreement and off-take agreement on or before 30 June 2010 or such later date as is agreed between the parties.
Nik Zuks, Managing Director of Bellzone Mining, commented: “I am delighted to announce this Binding MOU with China International Fund Limited (CIF). Under the terms of the Binding MOU, CIF will fund and construct the 286 kilometre rail and port facilities for our Kalia Iron Project in return for the right to purchase 100 percent of the off-take from Kalia. In addition, Bellzone will gain a 50 percent interest in the highly prospective Forecariah Permits located on the proposed rail alignment and in close proximity to the coast. This agreement will significantly de-risk Bellzone’s implementation strategy by ensuring Bellzone’s production value chain is secured from mine to customer. CIF is a highly regarded group of companies with a proven track record of developing large infrastructure projects in Africa and has got a serious commitment to Guinea and its development. This infrastructure project, estimated at USD 2.7 billion, is intended to form the first leg of developing a multi-user railway and port that is expected to open a number of opportunities for Guinea’s mineral deposits”.
Highlights of Binding MOU
CIF shall fund the entire infrastructure required for the Kalia Iron Project. The infrastructure will include the rail system (including rolling stock), bulk storage facilities, port, port loading facilities, port services and power development required to produce and transport a minimum of 50 million tonnes per annum of iron ore from the Kalia Iron Project.
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