Anglo American and its subsidiary Kumba Iron Ore Limited have signed a two-year agreement to finance African mining explorer Ferrex for the Mebaga iron ore project in Gabon
Anglo American, which owns nearly 70 per cent of Kumba Iron Ore Limited, has aims to stir up its dwindling iron ore business in the West African country, according to Wall Street Journal.
The deal could also see Anglo America refunding most of the exploration spending to date, Ferrex said. The global mining firm, which will manage the exploration work, could also eventually move to 100 per cent ownership of the mine project, the company said.
Dave Reeves, Ferrex’s MD, said that the full terms of condition would be disclosed in February 2014, after due diligence would have been completed.
The deal is, meanwhile, subject to approval by board of directors from both groups and the government of Gabon.
