South
Africa's African Rainbow Minerals (ARM) mining company announced plans to spend Rand 1.5 billion ($250 million) in order to expand its current 5.5 million metric ton annual
iron ore production capacity to 10 million metric tons by 2010.
ARM, South
Africa's second largest
iron ore company, is conducting a Rand 38 million feasibility study in the Northern Cape province. The company's entire
iron ore reserves are located in the vicinity of Cape Town, and the reserves are expected to provide high grade
iron ore for 30 more years.
The company is eager to see that the capacity of the Sishen-Saldanha export rail line be expanded. SteelOrbis previously reported on an agreement between Kumba and Transnet to increase the capacity of the rail line.
ARM currently transports 6 million metric tons a year via the railway. Once the upgrades are completed, ARM will increase its capacity to 10 million metric tons.
ARM exports 95% of its
iron ore production to
Europe,
Japan and
China. Company managers predict a 30% price increase in
iron ore for 2005.