Formalizing existing MOU Britannia set to further develop USD $80 Million logistics arrangement
Britannia Mining, Inc. (BMIN or the Company), the successor of a merger between UK based mining development company Britannia Mining Plc and U.S. based Micron Enviro Systems (Former Symbol: MSVS) announced today, that the Company has begun taking steps to advance its MOU with Central East African Railways (CEAR) initially securing rail transportation and bulk cargo services for 720,000Mt of Britannia’s proposed Iron Ore extractions.
“It is extremely fortunate that our Nthale iron ore project is positioned 3Km (1.86 miles) from CEAR’s rail lines,” stated Kenneth Roberts, CEO of Britannia Mining. “Logistics is one of the biggest factors to consider in the mining sector. Without existing infrastructure, the movement of mineral products can become an extremely costly endeavor. Many companies need to assign millions of dollars to transportation feasibility. Britannia’s strategy is ready and in position to move cargo from mine site to transportation lines, to distribution hubs and ports. This railway is quite literally in our backyard.”
The Company anticipates developing its MOU, which currently affords Britannia an approximate annual hauling value of USD $80 – $100 million, transposing the understanding between the two companies, into a full and commercial agreement. Management expects the internal logistics of CEAR to increase significantly over the next year. This process is expected to further increase Britannia’s ability to transport even greater volumes of iron ore, increasing its anticipated revenues.
“The most pertinent aspect of this railway is its route through Malawi to its eventual Indian ocean destination,” continued Roberts. “This rail line runs straight through our project to Nacala; a natural deep water port. In consideration of Britannia developing its mining operation, the commercial strategy set forth by this management team to supply both local and international markets, coupled with the positioning of our primary ore body (Nthale Hill being the first target identified to date), provides us with a strategic and fundamental framework to develop significant income streams.”
The entire logistics from freight loading to port storage takes approximately 18 hours. Britannia’s ore will then be loaded onto cargo ships and delivered to its continuously expanding worldwide distribution outlets.
Robert’s concluded, “We strongly believe that as the country of Malawi and the operations of CEAR continue to develop economically, having formalized the logistics agreement with the regional rail operator, will help us to build significant value and greater prosperity for Britannia and its shareholders for many years to come.”
- 7 Nov, 2013
- Sindy Foster
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