London Mining Plc announced that it plans to boost spending to $40 million on iron ore mine expansion and raise output to 6 Mt/a.

London Mining is the second-largest iron ore producer in Sierra Leone. The company, which produced 1.5 million tons of the steel-making ingredient in the first six months of the year, and will spend $40 million in 2014 to expand output, it said in a statement. London Mining will spend another $240 million in 2015 and 2016 to extend the life of its Marampa Mine in Sierra Leone.

“Overall the project economics are better than we (and we think consensus) expected and this announcement builds on the positive operational momentum seen over the past year,” Credit Suisse Group AG said in a note to investors.

London Mining has focused on developing the Marampa Mine after selling a Brazilian iron-ore project to ArcelorMittal for $810 million in 2008. The company said that the mine had reserves to operate for more than 40 years and produce iron ore at $42 to $45 a ton.