Zanaga Iron Ore Company Limited
Zanaga Iron Ore Company Limited
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The potential to establish a floating port off the coast of the Republic of Congo is giving new impetus to planning for the proposed 30Mtpa Zanaga iron ore project 250km NW of Brazzaville.
UK-listed Zanaga Iron Ore Co, the 50%-minus-one share partner with project manager Glencore, says a concept study demonstrates an offshore facility fed by a slurry pipeline from the inland minesite could significantly enhance the project economics.
The Republic of Congo has adopted the mining convention for Zanaga Iron Ore's namesake project JV with Glencore.
Terms of the convention include a 25-year mining licence, renewable for 15 years, 3% mining royalty, 5-year tax holiday and 15% corporate tax. Chairman Clifford Elphick says it should be well received by potential financial investors and lenders.
Zanaga, Glencore’s junior partner in the Zanaga iron ore project in the Republic of Congo, has recognised a $US100M impairment in its accounts for the year to Dec 2014 given the continued uncertainty about when it will be developed.
After the 2014 achievements of a robust feasibility study for its 2Bt ore reserves at 33.9% Fe, mining licence and mining convention, chairman Clifford Elphick says it’s still awaiting equilibrium in iron ore markets and input costs.
Zanaga has been granted the 25-year mining licence for its proposed 30Mtpa opencut iron ore mine 250km NW of Brazzaville in the Republic of Congo. UK-listed Zanaga has 50%-minus-1 share in JV with Glencore.
The company has also signed a mining convention setting out financial and legal terms for construction and operation of the Zanaga project. Reuters
Glencore demonstrated substantial cost savings and higher returns by adopting a 2-stage development approach to the 50-50 Zanaga iron ore joint venture with Zanaga Iron Ore in the Republic of Congo.
A feasibility study reduced capital costs from $US7.5B to $4.7B, with the second stage likely to be funded from cash-flow with costs in the bottom quartile.
Glencore Xstrata has shown it can achieve significantly lower capital costs while maintaining low operating costs by switching to a 2-stage development of the Zanaga iron ore project in the Republic of Congo.
Glencore Xstrata expects to complete a feasibility study for its Zanaga iron ore project in the Republic of Congo by the end of the March 2014 quarter.
The decision to proceed with a scaled-back and staged-development plan keeps the project on schedule for a mining licence application in the June quarter.
Under the revised plan agreed with junior partner Zanaga Iron Ore Company, the originally proposed $US7.4B, 30Mtpa project becomes a first stage $2.5-3B development producing 14Mtpa.
In the week in which it proclaimed $1.4B cutbacks on projects inherited from its takeover of Xstrata, Glencore has agreed to push ahead with a trimmer Zanaga iron ore project – but it comes at a cost
Glencore Xstrata and junior partner Zanaga Iron Ore Company have cut planned spending on the early stages of the Zanaga project in the Republic of Congo, announcing a joint search for funding.
Zanaga is one of dozens of promising West African iron ore deposits held back by a dire lack of infrastructure, from rail and road to ports.
ZIOC said in a presentation to investors the initial capital cost was reduced to $US2.5-3B, from a previous $7.4B.
Many juniors iron ore miners running short on cash and finding few options for funds. James Regan reports