[miningmx.com] – EXXARO Resources CEO, Sipho Nkosi, said his company would begin primary iron ore production from its Mayoko project in the Republic of Congo (RoC) later this year.
Speaking at the Reuters Investment Summit, Nkosi said he remained confident of securing the mining convention (permit) from the RoC authorities that would pave the way for the 10 million tonne/year (Mtpa) mine.
“We will get our mining convention and start mining this year,” Nkosi told Reuters. Mayoko was bought after the takeover by Exxaro Resources of Australian-listed exploration firm, African Iron, last year for $328m, said Reuters.
The process of securing a mining permit, as well as developing infrastructure, was part of a learning curve for RoC which has only recently emerged as a new, promising mining district.
“It is a learning curve for the country, for any investor. Once we have gone through that loop, anyone who comes after us is probably going to find things much easier,” Nkosi told Reuters.
In an interview with Miningmx earlier this year, Wim de Klerk, Exxaro Resources’ CFP, said the company would spend $320m developing the Mayoko project on receipt of the mining permit.
Of that amount, $120m will be on the railway, and the port infrastructure at RoC’s Pointe Noire and $180m on the mine itself, including equipment.
“Even if we just stick with the first phase 2Mtpa it will provide us with sufficient IRR (internal rates of return) as mandated by the board,’ said De Klerk.
