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Out of Africa: Terracom takes aim at iron ore market

Business

Coal miner Terracom is striking out into African iron ore with the potentially huge Kalia project in Guinea in its sights.

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The company, which owns the Blair Athol mine in central Queensland, has signed a memorandum of understanding for the acquisition of the mine.

The deal is still subject to due diligence and regulatory approvals.

Shares in the company jumped 10 per cent this morning following the announcement.

Executive chairman Craig Ransley said it was still early days in the due diligence process, but the company was excited to be working towards the deal.

“This opportunity further cements the company’s business diversification strategy to become a global bulk commodities producer,” Ransley said.

The project has a 20km strike length which Terracom said demonstrated the development resource potential of up to 8 billion tonnes of magnetite banded iron formation.

It was also about 300km from a port.

Terracom’s focus would be to recommence production as quickly as possible. Initially it would market to the local rebar market but would also “assess the most economic means to increase production to meet the growing global demand”.

 

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