Xiong Xinhai, CEO of WISCO CAD (Hong Kong) Mining Company, Ltd (formerly known as China Union (Hong Kong) Mining Company, Ltd), has stated that, while the first phase of the Bong iron ore mine project in Liberia was successfully commissioned on July 30, construction work on the second phase, which will add an annual iron ore concentrate output of 9 million mt, will definitely start in 2014. Construction work on the overall project is expected to be completed in 2017.
As previously announced by Hubei Province-based Chinese steelmaker Wuhan Iron and Steel (Group) Co. (WISCO), the first phase of the project is expected to supply one million mt of iron ore concentrate to WISCO per year. Mr. Xiong stated that the first phase has produced 50,000 mt of iron ore concentrate so far, while production will reach full capacity in the fourth quarter of the coming year.
On March 2010, WISCO had signed an agreement to pay China-Africa Development Fund Co. a total of $68.50 million for a 60 percent stake in the given project. The deposit in question has proven reserves of 1.31 billion mt of iron ore with an average iron content of approximately 36.86 percent, it has potential reserves of 2.785 billion mt, while it is connected to ports via an 80-kilometer railway.