Aricom ships first iron ore sales

June 19, 2008

June 19th (Telegraph) – Aricom, the Anglo-Russian miner spun out of Peter Hambro mining, will today announce that it has completed its first sales of iron ore from its Kuranakh deposit in a deal that marks its transition from developer to producer.

The sale comes almost five years after Aricom – run by Peter Hambro’s son Jay – first listed on Aim.

Mr Hambro said he was delighted “to witness the first shipment of ore from our Kuranakh project leave the railway loading facilities. With our first revenue from iron ore sales, Aricom has taken another major step from developer to producer. Although Aricom still faces a number of key challenges in fully commissioning the plants, achieving a revenue stream is a critical stage in the evolution of the group”.

Aricom has so far funded the development of its assets with two equity placings and recently appointed Morgan Stanley to raise around $1bn of debt to continue with the projects.

Kuranakh is the smallest of the company’s four deposits located in Russia’s far east close to natural markets in China, where iron ore is in heavy demand. The location of the deposits gives Aricom significant freight differential advantages over Australian and Brazilian rivals.


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