LIM signs iron ore sales agreement


 
TIDMAYM 
 
Anglesey Mining plc LSE:AYM 
 
15 August 2011 
 
LIM signs Iron Ore Sale Agreement with IOC 
 
Anglesey Mining's 33% owned associate Labrador Iron Mines Holdings Limited 
(TSX: LIM) is pleased to report that it has entered into an agreement with the 
Iron Ore Company of Canada ("IOC") for the sale and shipping of all of LIM's 
2011 iron ore production. 
 
Iron ore from LIM's new James Mine in northwest Western Labrador is currently 
transported by rail from its Silver Yards rail head, near Schefferville, via 
the TSH railway and the Quebec North Shore and Labrador (QNS&L) railway, to the 
Port of Sept-Iles where the ore is unloaded and stockpiled, adjacent to LIM's 
Point-aux-Basques dock facilities leased from the Port of Sept-Iles. 
 
Under the confidential sales contract with IOC, the iron ore will be delivered 
to Asian markets and resold by IOC's marketing organization on the spot market. 
The sale price for iron ore sold to IOC will be based on the actual realized 
prices to Chinese customers, less an allocation for handling, loading, shipping 
and sales costs. 
 
IOC is Canada's largest iron ore producer from its mines located in Western 
Labrador and is a leading global supplier of iron ore pellets and concentrates. 
IOC's major shareholder and operator is the international mining group Rio 
Tinto which has activities in more than 40 countries throughout the world. IOC 
owns 100% of the QNS&L railway and, at the Port of Sept-Iles, owns established 
storage and ore handling facilities, including its ship dock capable of taking 
ocean going vessels up to 240,000 (dwt) tonnes. 
 
LIM has previously entered into a life of mine, confidential rail 
transportation contract with QNS&L for the rail transportation of LIM's 
products on the QNS&L railway. This contract provides for a confidential 
tariff, with capacity and volume commitments on the part of each party. 
 
LIM's agreement with IOC will enable utilization of Cape Size Ocean going 
ships, where current freight rates are lower than for the alternative but 
smaller Panamax vessels, for the shipment of LIM's iron ore. 
 
LIM believes that the benefits associated with this arrangement, together with 
the benefits of the utilization of larger ships, will ensure that the maximum 
possible tonnage of LIM's iron ore will be efficiently shipped and sold during 
the remainder of 2011. 
 
 
 
About Labrador Iron Mines Holdings Limited 
 
LIM's Schefferville Projects involve the development of twenty direct shipping 
iron ore deposits in western Labrador and north-eastern Quebec near 
Schefferville, Quebec. The properties are part of the historic Schefferville 
area iron ore district where mining of adjacent deposits was previously carried 
out by the Iron Ore Company of Canada from 1954 to 1982. 
 
Mining and processing operations commenced in June 2011 and the first train 
carrying iron ore departed LIM's Silver Yards for Sept-Iles on June 29, 2011. 
To the end of July, about 50,000 tonnes of direct shipping iron ore had been 
delivered to the Port of Sept-Iles where it is stockpiled awaiting shipment. 
Production is planned to increase in stages over the next several years. 
 
For further information, please view www.labradorironmines.ca. 
 
About Anglesey Mining plc 
 
Anglesey Mining with its LSE main board listing is primarily focused on its 33% 
interest in Labrador Iron Mines (TSX:LIM). In addition to any new projects that 
may be brought forward the company owns 100% of Parys Mountain in North Wales 
with an historical resource in excess of 7 million tonnes at over 9% combined 
copper, lead and zinc. 
 
For further information, please contact: 
 
Bill Hooley, Chief Executive +44 (0) 1492 541981; 
 
Ian Cuthbertson, Finance Director +44 (0) 1248 361333; 
 
Samantha Harrison / Shaun Whyte, Ambrian Partners Limited +44 (0) 2076 344700; 
 
Emily Fenton / Jos Simson, Tavistock Communications +44 (0) 20 7920 3155 / +44 
(0) 7788 554035. 
 
 
 
END
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