African Rainbow Minerals Ltd announced that its Assmang unit has approved capital expenditure of ZAR 4 billion to build the Khumani iron ore mine and export facilities that will be commissioned by July 2008.

ARM in a statement said that "The board of directors has approved a total capital expenditure of ZAR 4 billion to construct the Khumani Mine, which includes anticipated escalation costs. The total cost will also pay for an increase in export tonnage to 10 million tonnes per year."

ARM said that export tonnages for its 50% owned unit Assmang would almost double to 10 million tonnes a year by January 2010 and logistics and transport group Transnet would increase its total capacity for transporting iron ore by rail to 47 million tonnes per annum, making possible the added export capacity.

Assmang is jointly owned by African Rainbow Minerals and Assore.