Johannesburg - Assmang had approved development of the R4 billion Khumani mine after securing export rights for 10 million tons of the steel-making ingredient, the second-largest iron-ore producer said yesterday.
Assmang will develop an 8.4 million ton-a-year mine in the Northern Cape.
Assmang and Anglo American's Kumba Iron Ore unit, its larger rival, are both increasing production to exploit prices that rose to a record this year.
During 2009, 7.2 million tons will be railed from the mine to the port and an additional 1.2 million from the neighbouring Beeshoek mine, according to Assmang.
From 2010, the full 10 million tons a year will come from Khumani.
Assmang is half-owned by Assore and half-owned by African Rainbow Minerals (ARM).
Assore was unchanged at R230 on the JSE yesterday, while ARM gained 3.62 percent to close at R120.68.
The gold mining sector lost 0.65 percent.- Bloomberg