African Minerals agrees transport access for ore from Marampa mine

Nov 3 (Reuters) - Iron Ore miner African Minerals Ltd said it had agreed to provide Timis Corp, owned by its Chairman Frank Timis, access for transporting ore from the Marampa mine, which the private company bought from failed miner London Mining (Other OTC: LIIGF - news) .

African Minerals also said it would assess the possibility of blending products from Marampa and its Tonkolili mine Sierra Leone, giving it access to European steel-making markets with high-grade products and capture benefits of lower freight rates.

The Marampa mine employs around 1,300 people and has iron ore reserves sufficient for 40 years of mining. The mine lies about 120 km from African Minerals' Tonkolili mine.

London Mining slipped into administration in mid October after it ran out of funds and failed to secure a buyer for the company, but said that it would work with its administrator PricewaterhouseCoopers to ensure a buyer for the mine.

Timis Corp agreed to buy the Marampa mine two weeks ago.

African Minerals agreed to provide Timis Corp access for six million tonnes per annum on its rail and port infrastructure, owned by its African Railway and Port Services unit.

African Minerals is expected to benefit substantially from lower infrastructure costs, higher tonnage and blending opportunities, saving an estimated $12 per tonne on current prices, Chief Executive Alan Watling said in a statement.

African Minerals, like London Mining, has been battered by a 40 percent drop in iron ore prices and disruptions in the region due to the Ebola epidemic. (Reporting by Roshni Menon in Bangalore; Editing by Gopakumar Warrier)