South Africa's Exxaro to mine iron ore in the Congo

South African miner Exxaro (JSE: EXX) plans to mine iron ore in the Republic of the Congo starting later this year, reports the New Age.

The company expects to get its permit soon for the Mayoko project, which it acquired as part of its takeover of African Iron. It will spend $320 million on the ramp up and forecasts an output of 2 million tonnes by 2014, eventually boosting that to 10 million tonnes each year.

In a partnership with government, Exxaro also plans to invest in a railway upgrade leading to the Pointe Noire port to handle export of the iron ore.

The company is South Africa's second biggest coal producer and expansion in the Congo is part of its diversification plan.

Image: Black Tusk, via Wikimedia Commons