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UPDATE 1-Ivorian gold output to rise to 8.5 T in 2008

Thu Feb 28, 2008 10:26pm IST
 
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ABIDJAN, Feb 28 (Reuters) - Ivory Coast's gold production will rise to 8.5 tonnes this year from 1.5 tonnes in 2007 as new mines start operations, the Energy and Mines Ministry said on Thursday.

"Annual gold output will rise from 1.5 tonnes to 8.5 tonnes from 2008, with the start of production at the gold mines of Bonikro and Angovia," said a ministry presentation obtained by Reuters on Thursday.

In a sign of a return of government control in the rebel-held north after a peace deal last year, several exploration permits had been issued for northern Ivory Coast, including to African miner Randgold Resources (RRS.L: Quote, Profile, Research) at M'Bengue.

Canada's Etruscan Resources (EET.TO: Quote, Profile, Research) at its Divo prospect in the south and Australia's Equigold EQI.AU at Katiola in northern Ivory Coast are among the other major companies exploring for gold. The ministry presentation said around a hundred other requests for exploration permits had been made. Nickel and iron mines were also expected to enter production in western Ivory Coast, the presentation said, without providing further details.

Indian steel producer Tata Steel (TISC.BO: Quote, Profile, Research) will invest $1 billion to $2 billion to develop iron ore deposits in Ivory Coast and expects mining to start at the site in Mount Nimba in three to four years. (Reporting by Loucoumane Coulibaly; writing by Daniel Flynn, Editing by Peter Blackburn)

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