Bellzone Mining sells ship for 8.9m dollars

3rd Jun 2013 12:39

AIM-listed exploration and resource development company Bellzone Mining has reported that the Forécariah Joint Venture has sold the ship named "FGM Iron" for a consideration of 8.9m dollars. Following the announcement on March 27th 2013 outlining revised production targets for Forécariah, Bellzone Mining said that the joint venture had carried out an in-depth analysis into the operational efficiency of the Forécariah operations. It said that the analysis had shown that the potential use of FGM Iron or an alternative vessel configured for trans-shipping was neither an operational requirement nor a material economic benefit at the current levels of joint venture production. As the joint venture was planning to ship between 800,000 and 1.0m tonnes in 2013, and 1.0m tonnes for 2013 and 2014, the company said that the use of geared vessels rather than FGM Iron was operationally effective and with one less ore handling stage.Glenn Baldwin, Chief Executive Officer of Bellzone Mining, commented: "The company is pleased to continue its operational optimisation with the sale of FGM Iron. The ship was originally purchased on the basis of the old Forécariah JV mine plan and production target and with our new JV production targets, there is no requirement for a ship with the ability to trans-ship ore to a Capesize vessel." Bellzone Mining's share price was down 7.37% to 4.40p at 11:54 on Monday.MF