Sahara Mining which is a branch of the Indian company Sandeep Gard and Company (SGNCO) was picked to mine iron deposits at Moribabougou near the capital Bamako, the Malian Mines Ministry announced on Friday.

The reserves of iron ore are evaluated at 91 million tons, according to the ministry. The company said it expects an annual output of 50,000 tons which will be exported through the Dakar port in Senegal, 1,350 km away from the mining site.

The mining of the Moribabougou iron requires an investment of 40.83 million U. S. dollars, the statement said.

"The advantages of the project include the creation of more than 1,600 jobs, community development and the generation of revenue for the Treasury," the statement added.