miningmx.com reported that African Rainbow Minerals expects to increase the price of its iron ore by between 65% and 71% for the coming year as it looks to secure transport and port space to double its iron ore exports in a ZAR 6 billion project.

Mr Jan Steenkamp head of African Rainbow Minerals Ferrous said that the price increase forecasts are based on what Brazil’s Vale, the world’s leading iron ore provider, has secured with three of the world’s biggest steel makers in recent days. BHP Billiton is expected to set its price increases for the year starting April 1st 2008 in coming weeks.

African Rainbow Minerals, which holds 50% of Assmang with partner Assore holding the rest, is to embark on a 12 month in fill drilling program at its Khumani iron ore mine in the Northern Cape to ensure the resources are in place to support a doubling of production.

Mr Steenkamp told miningmx that it will reduce its cutoff grade to 60% iron content from 62% to give those resources a boost. The drilling forms part of a feasibility study that will be completed by June 2008.

Assmang has already ordered a 10 million tonnes per annum crusher as the largest capital item and one of the longest lead items. It is expected to arrive in about 3.5 years, giving the company time to design its next 10 million tonne mine.