- Huge undeveloped iron ore resource
- Significant work already completed
- Major partners involved in infrastructure plans
What does the company do?
(ZOIC) is an iron ore development company run by seasoned mining industry professionals, including Clifford Elphick, the founder of Gem Diamonds Ltd ().
What does the company own?
Zanaga’s principal asset is the Zanaga iron ore project located in the south west of the Republic of Congo, which it owns in joint venture with ().
Several different production scenarios remain under consideration for the Zanaga project, including an option to mine as much as 30mln tonnes of ore per year. That scenario would involve a two-stage development, with initial production set at 12mln tonnes per year, and a further 18mln tonnes to be added later, once cash flow starts coming in.
There’s also potential for a direct shipping ore operation, mining at the rate of two million tonnes per year. This could lead to early cashflow, and would involve lower up-front costs.
How will development be funded?
With potential capital expenditures of upwards of US$2bn, finding funds for development will be key to Zanaga in the months and years ahead. As things stand, the company has helped put in place a framework agreement for infrastructure development with the major players in the area, specifically Glencore and the Chinese Overseas Infrastructure Development and Investment Corporation (COIDIC).
The parties intend to develop a joint initiative to introduce funding partners for the Zanaga Project and its related infrastructure, with the aim of securing debt and equity financing.
What does the boss say: chairman Clifford Elphick
“We are pleased to announce the conclusion of a Concept Study into a Floating Port facility for the Zanaga Project. This evaluation exercise demonstrates the clear potential of a Floating Port facility to enhance significantly the economics of the Zanaga Project through the reduction of upfront capital costs and enhanced Internal Rate of Return.”
“In addition, there is potential to achieve significant ancillary technical benefits such as reduced environmental impact, elimination of dredging, and significant flexibility on coastal route selection.”