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Exxaro Resources Launches Bid for African Iron

Exxaro Resources has launched a $349 million bid for African Iron. The South African company is hoping to gain control of the Australian listed African Iron’s Mayoko iron ore project located in the Democratic Republic of Congo.

Last year Exxaro Resources had tried to gain control of Territory, an Australian iron ore concern, but had lost the deal as it was out bid by the Hong Kong based Noble Group. Exxaro Resources is hoping to develop a significant iron ore asset in West Africa.

Sipho Nkosi, chief executive of Exxaro Resources, said in a statement that they had invested a significant amount of time and resources in due diligence on this acquisition, including several site visits and meetings with senior members of the Republic of Congo government.

The offer made by Exxaro Resources is open to the shareholders of African Iron till February 14, 2012. The South African regulatory approvals have been received and the Foreign Investment Review Board has also given its approval for the potential deal.

If the deal goes through and Exxaro Resources gain control of the Mayoko project they will be able to produce five million tons of steel making ore annually. Production as the project is likely to begin as early as next year.

Joel Scanlon

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Joel Scanlon

Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD. Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia. Joel is skilled in project management, content production, design, animation, database and networking, software, and editing. Joel has been with AZoNetwork since its inception in 2000.

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