In a major move, Anglo American and unit Kumba Iron Ore have agreed to fund a Gabon exploration project to gain access to the steelmaking raw material in West Africa, reports The Mail & Guardian.

London-based exploration company Ferrex has announced that Anglo American and its Pretoria-based unit agreed to fund exploration at the Mebaga project for a period of two years. Following this, Anglo American and Kumba will have the option to move to full ownership of Mebaga, Ferrex said in a statement.

Kumba operated Africa’s largest iron-ore mine, at Sishen in South Africa’s Northern Cape province, and controls all its producing assets in the country.

Kumba wants to almost double output by 2030, with new sites in western and central Africa. This will potentially account for more than 20 percent of the total. The company has also made an agreement to look for deposits in Liberia.

According to the terms of the deal, Anglo American and Kumba will manage exploration at Mebaga, using Ferrex’s team in Gabon. Meanwhile, the commercial terms of the deal are due to be announced once due diligence in Mebaga is completed in February.

Last year, Kumba produced 43.1-million metric tons of the steel ingredient in South Africa, which it wants to expand to 70-million tons by 2030. It is seeking as much as 20-million tons of output from West and Central Africa beyond that date.

In August, Kumba closed a $10.5-million exploration agreement in  with Jonah Capital for two projects in Liberia.