One of the world's leading asset management firms, BlackRock, has agreed to pay London Mining $110m, in return for a share of the company's future iron ore production, according to a press release issued on behalf of the company.
The release quotes London Mining as saying on Monday that BlackRock, through its listed World Mining Trust, will receive 2 % of iron ore revenues from the Marampa mine in Sierra Leone. The royalty agreement will help fund expansion of its flagship project to 9 million tonnes a year.
BlackRock, which has its headquarters in New York City, is an American multinational investment management corporation and the world's largest asset manager, according to the release. As of June 2011, it had over US$3.6 trillion in assets under management.
"Quality iron ore always finds a market," said Graeme Hossie, Chief Executive of London Mining, noting that the company was already producing a premium product used by steel mills to blend with lower-quality ore.
London Mining is expected to produce 1.5 million tonnes of iron ore this year, as part of its first US$ 300 million development phase which should see Marampa ramp up to 5 million tonnes by 2014, the release concludes.
