This means the South African company has beat India's Tata Steel, the world's sixth-largest steel maker, which was planning an investment of between $1.5-billion and $2-billion in the Western Cluster Iron Ore Deposit as it continued to seek ways of increasing raw material security.
DMC was one of seven short-listed bidders selected out of 14 expressions of interest.
Competing bids were received from Tata, Sinosteel Corporation, Xingxing Group, Rio Doce South Africa, ArcelorMittal and Bahlodi Africa.
According to DMC, Liberian President Ellen Johnson-Sirleaf announced the winning bid during her speech to the legislature earlier this week.
Johnson-Sirleaf was also quoted last week as saying in an interview that an announcement would be made within days.
She said the $1.6-billion contract to develop the iron ore deposit was awarded to a group of South African and Australian investors called Delta.
DMC confirmed that it has not yet received written confirmation from the Liberian government.
The Western Cluster Iron Ore Deposits consist of the Mano River Iron Ore Deposits, the western portion of Bomi Hills Iron Ore Deposits and the Bea Mountains Iron Ore Deposits.
A special purpose vehicle with funding to enable initial development of the project has been established, said BuaNews.
DMC is a diversified junior exploration and mining group trading in the South African, SADC and West African markets.
In addition to its current South African operations, the company is expanding its interests into Namibia, Botswana, the Democratic Republic of Congo and the Central African Republic as well as Liberia.