Zanaga Iron Ore Company (ZIOC) announced that it has completed the process plant costing study for the production of high-grade iron ore concentrate intended for pellets used in direct reduced iron (DRI) production at its Zanaga iron ore project in the Republic of the Congo. The company stated that the updated technical and economic assessments have strengthened the project's financial outlook.
According to the company, the updated process flowsheet has been re-optimized for the production of DRI-grade pellet feed iron ore concentrate. With the completion of the costing study, the project's economic parameters have also been updated, while the aim is to enhance its potential to supply raw materials to DRI plants serving low-carbon steel production. The company also noted that global demand for high-grade iron ore products is expected to increase as the transition to green steel production accelerates.
According to the disclosed figures, the project's first phase is expected to require capital expenditure (CAPEX) of USD 2.17 billion, with a net present value (NPV) of USD 2.54 billion and an internal rate of return (IRR) of 22.5%. When both phases are considered together, the total investment requirement amounts to USD 4.05 billion, while the total NPV reaches USD 4.9 billion.
With approximately 6.9 billion tonnes of mineral resources and 2.1 billion tonnes of JORC-compliant ore reserves, the Zanaga project is considered one of the world's largest undeveloped high-grade iron ore projects. The project is planned to produce 12 million tonnes of iron ore concentrate annually in its first phase, with total production capacity increasing to 30 million tonnes per year following completion of the second phase.
The company stated that, following the completion of the technical studies, its focus has shifted to financing and strategic partnership activities. In this context, discussions with strategic investor Red Arc Minerals were described as an important milestone on the path toward the project's final investment decision (FID). ZIOC said it is targeting a final investment decision by mid-2027.
Comments
No comment yet.