LONDON, Sept 2 Africa-focused mining and
infrastructure firm IMIC said on Monday it signed an
offtake agreement with Chinese group Hebei Iron and Steel for
iron ore produced from the Nkout project in Cameroon, which IMIC
is in the process of acquiring.
Junior miner Afferro <AFFA.L< agreed to a $190
million cash-and-paper offer for the company from IMIC in May.
IMIC, which is allied with African Iron Ore Group, run by
Afren Plc founder Bert Cooper, says it can build the
infrastructure necessary to begin production at its project in
IMIC said the offtake agreements will be used as a vital
part of financing the project through Chinese partners such as
Hebei - the largest steel producer in China.
A similar offtake agreement was crucial to African Minerals
building the railway connecting their iron ore project
in Sierra Leone, according to IMIC. African Minerals is one of
the only junior iron ore producers in West Africa.