By Emmanuel Tumanjong

Special to Dow Jones Newswires


Ivindo Iron SA, a joint venture led by Australian miner Fortescue Metals Group Ltd., is expected to start exploitation of Gabon's Belinga iron ore deposits in the second quarter of the year, the country's Mines Minister Elvis Ossindji said Wednesday.

"In the coming weeks, we will enter a phase of studies to assess the soils in order to identify and map the reserves of this project. Exploitation will begin in May-June," Mr. Ossindji told reporters upon his return from the mining site in eastern Gabon.

The drilling is coming earlier than expected, as the Australian firm had started exploration in October last year.

Fortescue Metals is investing about $90 million to explore the site over three years.

Mr. Ossindji said exploration on the mining site has been facilitated by available data, which eased the identification of the deposit's reserves, currently estimated at 1 billion tons with a content of about 65%.

The Gabon government will receive a 10% interest in Ivindo Iron once the holding company is awarded an exploitation license for the site, while Fortescue will retain a 90% interest.


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(END) Dow Jones Newswires

01-19-23 0735ET