Wonder if DMC or Tony knew about these projects?Veteran mining...

Wonder if DMC or Tony knew about these projects?
Veteran mining company executive Ian Middlemas has joined the rush into West Africa's fledgling iron ore sector, announcing a deal yesterday to buy two early-stage projects in the Republic of Congo.

The deal, through the listed Equatorial Coal which is chaired by Mr Middlemas, continues the flurry of activity in West Africa as junior companies try to lock in some of the region's iron ore riches before industry giants like Vale, Rio Tinto, BHP Billiton and ArcelorMittal pounce.

The timing of the Equatorial deal coincides with uncertainty in WA's iron ore industry about the Rudd Government's proposed resource super profits tax. Already miners are threatening to halt exploration and expansion projects in WA in favour of pursuing projects overseas, including in Africa.

The projects acquired by Equatorial include Mayoko-Moussondji, next to the Mayoko-Lekoumou deposit owned by DMC Mining, which is the subject of a fierce takeover battle between Tony Sage's Cape Lambert Resources and China's Meijin Energy Group. An existing railway line runs through the Mayoko tenements to the port of Pointe-Noire, potentially leaving Equatorial without the costly and time-consuming task of building its own infrastructure.

Other iron ore players in the region include Sundance Resources, Gordon Toll's Core Mining and Xstrata.

Equatorial is buying the exploration-stage Mayoko and Badondo assets off two Congolese businessman for $US3.2 million ($3.9 million) cash and up to $2.6 million of shares.

To help pay for the projects, Equatorial will carry out a $2 million equity raising at 25 a share. The shares closed unchanged at 34 yesterday.

Equatorial director Peter Woodman said he hoped to launch a drilling program before year's end.

The iron ore deal all but ends Equatorial's ill-fated push into coal mining in Indonesia. The Perth company was forced to suspend mining at its South Kalimantan asset a year ago after its partner Mega Coal Indomine failed to repay $US6.5 million. Equatorial is still trying to recover the debt