South African mining company Assmang Ltd. Wednesday said it has received board approval to spend a further 5.5 billion rand ($675.4 million) expanding output at its Khumani iron ore mine by 6 million metric tons a year.
Of the expanded production, 4 million tons is intended for export and the remainder for the domestic market, the company said.
Assmang, which is equally owned by African Rainbow Minerals Ltd. and Assore Ltd. said it will fund the expansion to 16 million tons a year from existing cash resources, operating cashflow and existing borrowing facilities.
The 10-million-ton-a-year Khumani mine was completed on time and within budget, Assmang said. It said total capital expenditure for the Khumani expansion project is ZAR6.7 billion, based on a feasibility study completed in June and including ZAR1.2 billion approved last September.
Assmang mines manganese and iron ore in South Africa's Northern Cape province and chrome ore in Mpumalanga, as well as manganese alloys in Kwazulu-Natal and chrome alloys at its works in Mpumalanga province.
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