Kumba aims to raise A1,5bn for Hope Downs
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Resources Correspondent
KUMBA Resources will issue a memorandum to financial backers for its Hope Downs potential iron ore development in Australia soon.
Together with its partner, Hancock Prospecting, Kumba is looking to raise A1,5 bn to finance the project.
"We're looking for partners who can bring something to the table," said Kumba CE Con Fauconnier during a presentation on Friday.
Fauconnier said Anglo American might be a potential partner in Hope Downs but financing for the project could come from a number of areas.
The Hope Downs development would be one aspect of Kumba's plans to lift its iron ore output from about 28-million tons a year now to 70-million tons a year by 2010. Continued strong demand for iron ore, used in steel making, would underpin these plans.
Global consumption of finished steel had grown 2,5% a year since 1997 and was expected to exceed 800-million tons this year, said Kumba.
Kumba also plans to make a decision on development of the Sishen South project by the end of the year and is reviewing options to expand Sishen mine output to 38-million tons a year. In west Africa, Kumba is looking at possible iron ore projects in Gabon and Senegal.
Jul 01 2003 08:41:32:000AM Julie Bain Business Day 1st Edition
Tuesday
01 July 2003
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