London Mining has released the results of an updated bankable feasibility study for the Wadi Sawawin iron ore pellet project in Saudi Arabia that foresees production of at least 5 million mt/y of direct reduction pellets over a 20-year mine life. Capex to develop the project is estimated at $1.9 billion. Potential to expand to 10 million mt/y exists based on currently identified exploration targets. London Mining will hold a 25% interest in the joint venture that is developing the project, with Saudi Arabia’s National Mining Co. holding 75%.

The project configuration envisages mining and primary crushing at the mine site, after which ore will be transported 52 km by road to a beneficiation and pelletizing plant on the coast, adjacent to a proposed deep-water port and related power and desalination facilities.

Construction is anticipated to take 27 months, following the arranging of financing, which is estimated to take six to 12 months.

The Wadi Sawawin project has a current indicated JORC-compliant resource of 248 million mt grading 39.8%.