Guinea-focused miner Bellzone said it has sold a bulk-carrying ship after a cut in its iron ore production forecasts at its Forecariah mine earlier this year meant the vessel was no longer needed.
The ship - FGM Iron - has been sold for a consideration of$8.9 million, Bellzone said.
The firm said in March that Forecariah, a joint venture with China International Fund, should produce 800,000 to 1 million tonnes of iron ore this year - potentially less than a quarter of original forecasts, after the miner found less direct shipping ore - which can be shipped straight to a steel furnace - than expected.
Bellzone said the FGM Iron was not needed given the current levels of Forecaria production.
The company said the use of a future trans-shipment system is currently being looked at for its other larger asset in Guinea, Kalia, with news expected in the third quarter. (Reuters)
Bellzone sells ship due to lower iron ore output from Guinea
posted by AJOT | Jun 02 2013 at 08:00 PM | Maritime