By Bhoyy Jalloh

African Minerals Ltd has confirmed the signing of a memorandum of understanding with the Government of Sierra Leone for the construction and management of a railway extension between the Pepel port and Marampa to the company's flagship iron ore project at Tonkolili.

Pepel Island is part of the Atlantic seaport near the mouth of the Sierra Leone River, an estuary formed by the Rokel River and Port Loko Creek.

Beginning in 1933 it exported iron ore brought by rail from the Sierra Leone Development Company's mines at Marampa, 41 miles (66 km) east-northeast. Until iron-ore mining was suspended in 1975, Pepel, the nation's only iron-ore port.

According to Thomson Financial News in London the company would undertake an engineering study to upgrade the deep water port at Pepel, assuming a handling capacity of up to 25 million tonnes per year to meet import and export requirements.

African Minerals would also engage engineering consultants to complete a study examining the feasibility of upgrading the existing railway between the Port and Marampa to standard gauge.

The company said it would also commission an engineering study on the Bumbuna hydroelectric power source. The power source is located about 20 km from the Tonkolili project.

Executive chairman Frank Timis said the memorandum of understanding underlines the company's strong working relationship with the government of Sierra Leone and commitment to improving the country's infrastructure while securing the rail, port and power capacity requirements for its iron ore projects.