Equatorial Resources aims to invest $1.2 bln in Congo iron project

Equatorial Resources

23/11/2016 10:31

BRAZZAVILLE, Nov 23 (Reuters) - Africa-focused Australian 
mining company Equatorial Resources Ltd  EQX.AX  will aim to 
invest around $1.2 billion to develop its Badondo iron ore 
project in Republic of Congo, the company said. 
    John Welborn, a non-executive director of Equatorial 
Resources and chief executive of its Congolese unit Congo Mining 
Exploration Ltd, met Prime Minister Clement Mouamba on Tuesday 
and submitted an application for a mining license.  
    "The recent improvement in the price of iron ore makes 
Equatorial confident that it will find the necessary financing 
to develop the mine," the company said in a statement 
distributed late on Tuesday after the meeting.  
    African mining, particularly large iron ore projects, has 
been hit hard by the global commodities crash. 
    However, the S&P 1500 composite steel index  .SPCOMSTEEL  
has surged since the U.S. election, bolstered by U.S. 
president-elect Donald Trump's perceived support for the steel 
industry. 
    Chinese iron ore futures are also rising amid news that 
production at steel mills in northern Hebei province will be 
curbed or even shut for as long as four months in an effort to 
combat pollution.  urn:newsml:reuters.com:*:nL4N1DO26M   
    Equatorial Resources estimates annual iron ore production of 
40 million tonnes at the Badondo mine and its feasibility study 
foresees construction beginning next year, the statement said. 
    Plans for the building of new infrastructure, including 
construction of a rail line and port to facilitate exports, must 
be finalised before the project can be developed, it said.    
     
      
 
 (Reporting by Christian Elion; Writing by Joe Bavier; Editing 
by Dale Hudson) 
 ((joe.bavier@thomsonreuters.com; +225 07074101; Reuters 
Messaging: joe.bavier.thomsonreuters.com@reuters.net)) 
 
Keywords: CONGO IRON/EQUATORIAL