Ferrum Sells 35% Stake In SA Iron Ore Project
News: Australian mining company Ferrum Crescent has sold a 35% stake in its Moonlight iron ore project in South Africa to Oman-based firm Anvwar Asian Inves t ment , Mining Weekly reports. The deal will see Anvwar pay OMR3.8mn ( US$10mn ) for the stake, along with a further OMR1.3mn ( US$3.5mn ) contribution to on-going developme nt costs. Ferrum stated that it will use the funds to move the project towards the construction stage.
BMI View: The past decade of stagnation in South Africa's mining sector is set to continue as the country's gold and platinum sectors face diminishing margins and industrial strife. Potential for growth in the iron ore and coal sectors constitute bright spots for the mining industry in the long term. We expect South Africa's mining sector value to grow by an annual average rate of 0.5% over the forecast period, from US$32.4bn in 2013 to US$33.1bn in 2017.