Reuters reported that South Africa Metals Equity Limited plans to invest USD 300 million to build a plant for producing pig iron.

Mr Donovan Chimhandambi chairman of South Africa Metals Equity Limited said that a feasibility study for the project was expected to be completed by the second quarter of 2011 before capital raising for the project began.

He added that "The company will produce about 500,000 tonnes per annum of pig iron. Production of the steel making ingredient is expected to start at the end of 2013."

He said that construction of the plant, which will treat materials from mining waste dumps to produce iron pigment and vanadium, is expected to last two years from 2011.

Mr Chimhandambi said that Bank of America Merrill Lynch had been appointed as lead in capital raising. He added that "It will take us about six months to raise capital for the project."

South Africa Metals Equity, based in Brits in North West province, has mainly black South African investors as shareholders. ArcelorMittal's South African unit dominates steel production in Africa's largest economy.

(Sourced from www.reuters.com)