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“Work on the feasibility study is ongoing and we remain on schedule to apply for our mining licence by the second quarter of 2014,” Andrew Trahar, Zanaga’s corporate development and investor relations manager, told Steel First on Monday July 8.
London-listed Zanaga Iron Ore has completed drilling for the Zanaga project feasibility study and does not expect to require further funding for the remaining technical work, it said in its audited 2012 results at the end of June.
Glencore Xstrata holds 50% plus one share in the project and is obliged to fund the completion of the study according to the jv contract. Zanaga Iron Ore had a cash balance of $40 million at end of 2012.
The Zanaga project, located in southern Congo, holds 6.8 billion tonnes of iron ore resources, including 2.5 billion tonnes of probable reserves at 34% Fe.
Zanaga’s pipeline pre-feasibility study suggested that 30 million tpy of 68% Fe pellet feed could be transported, via a slurry pipeline, to the sea-borne market. Total direct and indirect capital costs are estimated at $7.4 billion.
Australia-listed Equatorial Resources and South African diversified miner Exxaro are developing iron ore projects nearby.