Cehegín Iron Ore Mining Project Overview

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Historical production and exploration data

  • Iberian Minerals’ 100% owned Cehegín Iron Ore Project, located in South Eastern Spain was operated by the Spanish ironworks company Altos Hornos de Vizcaya (AHV)
  • Between 1975 and 1989, AHV completed a significant amount of exploration and exploitation on four of the 62 concessions at Cehegín: in excess of 4 Mt of ore was mined and processed and some 38,000 m of drilling was completed

Infrastructure 

  • Access to the deposit is via a network of paved toll-free highways; the project is located only 6 km north of the main Murcia to Cehegín toll-free highway and 115 km to the deep sea Port of Cartagena.
  • ENFE, the local rail company, has a spur 12 km from the project in the town of Calasparra. The port of Cartagena is 142 km by rail. The rail system provides access throughout Europe, allowing wide distribution of the iron ore concentrate

Regional support 

  • The Region of Murcia has been very supportive of the project in all aspects, including environmental issues
  • The region has placed a high priority on job creation, classifying the Cehegín project as a strategic initiative. This allows it to fall into a special regulatory framework that reduces the period of all the regulatory terms  by half
  •  In addition, it grants special tax reductions which could see to 30% of net profits tax exempt up to ten years

European iron ore demand

  • The EU is the 2nd largest import market for Iron Ore behind China and slightly ahead of Japan.
  • The European Steel industry remains extremely dependent on imports. It imports approximately 135 million metric tons of Iron Ore annually. The main consumers are Germany, Italy, France and the UK