By Rhiannon Hoyle


Fortescue Metals Group Ltd. said it expects to start mining the Belinga iron-ore deposit in Gabon in the second half of 2023 after agreeing the legal, fiscal and regulatory regimes for the project.

The world's fourth-largest iron-ore miner said a mining convention signed on Tuesday allows for production of up to 2 million metric tons of iron ore a year while a potential larger-scale development is studied.

Fortescue said the project, majority-owned by the Australia-based miner, will cost roughly US$200 million over 2023 and 2024.

Belinga is being developed via Ivindo Iron SA, in which the Gabon government will have a 10% interest and a joint venture that's owned 80% by Fortescue and 20% by the Abu Dhabi-based Africa Transformation and Industrialization Fund will control the rest.

Last month, the country's mining minister Elvis Ossindji said he expected Ivindo Iron to start exploitation of the Belinga iron-ore deposit in the second quarter of the year.

"If it fulfils its promise, it will complement our Australian operations through enhancing our blended products, extending our mine lives and opening new global markets," said Fortescue Executive Chairman Andrew Forrest.


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

02-07-23 1750ET