Ferrum Crescent Progressing With Moonlight Project
News: Australia-based mining company Ferrum Crescent has announced plans to go ahead with a banking feasibility study at its Moonlight iron-ore project in Limpopo, South Africa, reports Mining Weekly. The venture will include an open-pit mine with a logistics pipeline to a nearby pellet plant that will produce iron-ore pellets for international and domestic market s . The miner has already secured an offtake agreement with steel company Duferco which sees the latter have exclusivity rights for the first 4.5mn tonnes of iron-ore pellet production. Ferrum expects construction at the site to begin in 2015 and to be concluded by 2018.
BMI View: We expect South Africa's mining sector value will reach US$34.2bn by 2017, growing at an annual average rate of 1.1% over the forecast period, from US$33.2bn in 2011. This growth will be driven by coal productio n, which accounts for the majority of the mining sector value. Our growth forecast is below our expectations for the wider economy and thus we expect the mining sector's share of GDP to fall from 8.1% in 2011 to 6.4% in 2017.