UPDATE 1-ARM sees Khumani iron ore output at 16 mln T by 2012

* ARM eyes Zimbabwe's platinum sector

* CEO says Konkola North copper project viable

(Adds details, quotes)

By Wendell Roelf

CAPE TOWN, Feb 2 (Reuters) - Diversified miner African Rainbow Minerals (ARM) (ARIJ.J) is on track to boost production at its Khumani iron ore mine by 2012, and was also aiming for Zimbabwe's platinum sector, its CEO said on Tuesday.

ARM was also looking at acquisitions in the rest of the continent and had formed a joint venture with Vale (VALE5.SA) to explore for copper in Zambia, while also looking at the Democratic Republic of Congo, Namibia and Mozambique.

"We are certainly on track for the first phase and the second phase (expansion) and see full production at the end of the year 2012, from 10 million tonnes per annum to 16 (mtpa)," Chief Executive Andre Wilkens told Reuters on the sidelines of an African mining conference.

Wilkens said his board would consider the Konkola North copper mine project later this year before announcing its terms, although it looked viable at this stage.

"The long-term copper price looks much stronger now than 18 months ago so it certainly makes that project viable," he said.

ARM produces platinum, nickel, iron ore, manganese ore and coal, among others.

Wilken said the company intended to spend around 8 billion rand ($1.06 billion) over the next two years, including this financial year, as it ramped up production and sought to make acquisitions in the rest of the continent.

"We are looking specifically at platinum in Zimbabwe to see what we can achieve there," he said.

Zimbabwe, which has large undeveloped platinum reserves, is struggling to boost investments in its mining sector following years of neglect prompted by political violence and an economic collapse in the southern African nation.

Its indigenisation process, which aims at nationalising mines, has also caused consternation among investors and large mining companies, with Rio Tinto (RIO.L) on Tuesday saying this remained a concern. [ID:nWEA8173]

But Wilkens said ARM would invest in Zimbabwe if it made business sense.

"If we are able to get the license or the ownership of a sizeable ore body that makes a good business case we will go there," he added. (Reporting by Wendell Roelf; Editing by James Macharia)