South African miner Petmin, which is pursuing a strategy of targeting commodi- ties that are infrastructure related, has reported that the company is ready to intensify its exploration programmes at the Mt Ginka iron-ore project, in Liberia, in which the company has acquired a 50% stake.

Petmin announced earlier this month that the company had spent an additional $1.5-million on Mt Ginka to increase its stake in the project joint venture company, Iron Bird Resources. This means that Petmin will own 50% of Iron Bird with fellow resources company Hummingbird Resources.

Petmin chairperson Ian Cockerill reports that the investment takes Petmin’s total investment in Iron Bird to $2-million.

“Under the terms of the JV agreement, Hummingbird and Petmin now each hold a 50% stake in Iron Bird. Both parties now have the option to contribute equally to any further funding that may be required,” says Cockerill.

He adds that there have, as yet, been no discus- sions for Petmin to acquire a majority stake in the project.

When pressed as to whether this project holds specific strategic value, Cockerill said that this forms part of the company’s well-documented strategy.

“When the company was formed, it said it would specifically target commodities closely aligned with infrastructure build programmes. In addition to the investment in Mt Ginka, Petmin is doubling the capacity of its Somkhele anthracite mine, in northern KwaZulu-Natal. Petmin has also invested in Canadian miner Red Crescent Resources’ Sivas Copper Project, in central Turkey. So, although it is very early to speculate as to whether Petmin will eventually be able to compete with giants of the industry such as Kumba Iron Ore, it is ‘steady on’ with its basket of commodities,” says Cockerill.

Without giving too much away as to possible clients for first product, which is quite a way off, considering that the company is only currently intensifying its exploration programme, he adds that one cannot ignore the demand from Asian target markets that include China, South-East Asia and the Indian subcontinent. This, despite the fact that Liberia is on the ‘wrong side’ of Africa for quick and efficient supply to Asian target markets.

“With production still several years away, Petmin has not given too much thought to that but it is well positioned in that it can export to Turkey through the Mediterranean Sea and also has direct access to lucrative markets in North and South America,” says Cockerill. He adds that the intention of many Middle Eastern markets to move away from oil and gas dominance could also present the company with export options.