Subject to the closing of a second tranche fundraise which was expected in March this year, Republic of Congo-based iron-ore developer Zanaga Iron Ore Company (ZIOC) is prioritising several workstreams in the development of its Zanaga iron-ore project including product quality enhancements and feasibility studies into a pellet plant, a 30-million-tonnes-a-year capacity pipeline and dry tailings.

The combined impact from these workstreams is targeted to increase the net present value (NPV) of the project by more than $4-billion.

The Zanaga iron-ore project is located in the south west of the Republic of Congo, close to the border with Gabon.

ZIOC published an update to the project’s feasibility study in April 2024, highlighting strong support to progress the project within its legislated permit status, continued demonstration of robust economics and a forward work programme to evaluate additional value opportunities to optimise the construction and operation of the Zanaga project.

During the process of conducting ZIOC’s equity fundraise, the company notes that a number of the investors have been engaging with ZIOC in evaluating value adding opportunities.

In terms of product quality enhancements, ZIOC is undertaking direct reduction iron (DRI) testwork.

The ability to achieve DRI specification from the Zanaga project’s ores has the potential to transform the value proposition of the project and increase its NPV by up to $6-billion, dependent on DRI product price, ZIOC highlights. Significant price premiums here could potentially create substantial upside value for the project, the company adds.

In addition, new technologies have been proven since the 2014 feasibility study which are amenable to processing Zanaga’s ore. Taking this into account, ZIOC is conducting a laboratory-scale testwork programme capable of completion within a short timeframe, and, if successful, ZIOC will consider pilot scale testwork supported by conducting testwork on a bulk haematite sample.

“In parallel with this optimisation, we look forward to engaging with potential strategic partners as we look to develop the Zanaga project,” says ZIOC CEO Martin Knauth.

Feasibility Studies

Abundant gas and energy availability in the Republic of Congo provides an ideal environment for potential pelletisation of Zanaga’s high grade iron-ore products, reports ZIOC, adding that this dynamic is the reason behind the company pursuing a feasibility study into a pellet plant.

Downstream pelletisation has the potential to increase the project’s NPV by up to $1-billion.

The Pointe-Indienne Special Economic Zone, under development by Zanaga project’s port development partner Arise, is ideally suited for such industrial activity and adequately supported by excess power capacity from the neighbouring Centrale Électrique du Congo power plant with which ZIOC has recently concluded a memorandum of understanding to develop power solutions.

In addition, ZIOC has received interest from various groups in Saudi Arabia and the United Arab Emirates.

In terms of expanding its pipeline, ZIOC reports that an opportunity exists to construct a single buried 30-million-tonne-a-year capacity pipeline for the Zanaga project’s Stage 1 12-million-tonne-a-year initial development.

This would eliminate the need to construct a second independent pipeline to support the Stage 2 18-million-tonne-a-year expansion and would reduce Stage 2 capital costs substantially – by about $700-million, reduce environmental impact, enable the acceleration of the Stage 2 expansion and streamline financing of Stage 2 from Stage 1 cash flows.

Meanwhile, in terms of tailings deposition and management, ZIOC reports that while a large wet tailings storage facility (TSF) is currently planned for the base case staged development of the Zanaga project, an opportunity exists to use thickened paste or filtered tailings technology to reduce moisture content.

This would serve to create substantial benefits such as reducing long term management costs through reduced sustaining capital expenditure (capex), and enable a smaller footprint TSF with simpler operation and progressive rehabilitation.

ZIOC estimates that, if successful, the use of a dry tailings TSF solution could deliver up to $2- billion of sustaining capex savings over the life of the mine.

The feasibility study of a dry tailings TSF solution is underway in the third quarter of the year