China Deal to Double Ivory Coast Manganese Output

ABIDJAN, Sept. 25 -- China National Geological and Mining Corporation (CGM) will invest more than $20 million over the next two years to double Ivory Coast's manganese output to 300,000 tonnes per year, Ivorian officials said.

    Ivory Coast is a small-scale metals producer, but is attempting to develop its mining sector, which also contains gold, to diversify its cocoa-based economy.

    State-owned CGM will spend 10 billion CFA francs ($22.48 million), and in common with many other mining investment deals, take production of the steelmaking additive from the Lauzoua mine, around 180 km from main city Abidjan.

    "Production at the moment is around 150,000 tonnes per year. With the support of the Chinese, we will increase production capacity beyond 300,000 tonnes in 2011," Jean Likane-Yagui, managing director of Ivory Coast's state mining firm Sodemi, said late on Wednesday.

    "CGM will guarantee a market for the duration of the life of the mine," he said.

    BHP Billiton (BLT.L)(BHP.AX) is the world's biggest producer of manganese, used in the auto industry, with capacity of around 7 million tonnes per year.

    "This partnership agreement demonstrates the desire of the head of state to make the mining sector the second layer of our economy after agriculture," said Energy and Mines Minister Leon Emmanuel Monnet.

    Ivory Coast, where much-delayed elections are due to be held on Nov. 29, is the world's biggest cocoa producer.

    (Source: Reuters)