Name of the Project
Zanaga iron-ore project.

Location
The Zanaga project is located 30 km west of Zanaga, a regional centre of the Lekoumou department of Congo-Brazzaville.

Project Owner/s
Iron-ore exploration and development company Zanaga Iron Ore Company (ZIOC).

Project Description
The Zanaga project hosts one of the largest iron-ore reserves in the world with a Joint Ore Reserves Committee-compliant 6.9-billion-tonne iron-ore resource and with 2.1-billion tonnes in iron-ore reserves. 

The 2024 feasibility study proposes the project be completed in phases.

Stage 1 involves development to an initial 12-million tonnes a year of high-quality iron-ore product.
The Stage 2 optional expansion will entail an 18-million-tonne-a-year expansion to 30-million tonnes a year of total product.

There is an opportunity to supplement the project’s pipeline pellet feed production with up to two-million tonnes a year of direct shipping ore (DSO). The defined mineral resource includes some high-grade material that can be classified as DSO. An area of the deposit has been identified that includes a concentration of material at surface that can be simply crushed and screened to produce a saleable iron-ore lump and/or fines product without any requirement for beneficiation. 
Any decision to proceed with the DSO operation will depend on the confirmation of a suitable transport solution, including obtaining access to rail and port infrastructure on acceptable terms.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has a net present value (NPV) of $3.68-billion and an internal rate of return of 26.2%.
Stage 2 has a combined NPV of $7.36-billion and an internal rate of return of 28.2%.

Capital Expenditure
Stage 1 is estimated at  $1.94-billion, and Stage 2 at $1.87-billion.

Planned Start/End Date
Not stated.

Latest Developments
ZIOC has reported that Congo-Brazzaville’s abundant gas and energy resources create favourable conditions for the potential pelletisation of its high-grade iron-ore products. This advantage underpins ZIOC’s decision to launch a feasibility study on establishing a pellet plant.

According to the company, downstream pelletisation could boost the project’s NPV by as much as $1-billion.

The Pointe-Indienne Special Economic Zone – being developed by Arise, ZIOC’s port development partner – is well positioned for industrial operations such as pellet production. It benefits from surplus electricity from the nearby Centrale Électrique du Congo power station, with which ZIOC has signed a memorandum of understanding to explore power solutions.
ZIOC has also noted growing interest from parties, in Saudi Arabia, and the United Arab Emirates.

On infrastructure development, ZIOC sees potential to build a single buried pipeline with a 30-million-tonne-a-year capacity to support the project’s initial Stage 1 output of 12-million tonnes a year. This approach would eliminate requiring a separate pipeline for the Stage 2 expansion, which targets 18-million tonnes a year, consequently decreasing capital costs for Stage 2 by about $700-million. It would also lower environmental impact, allow for the faster implementation of Stage 2, and facilitate funding for Stage 2 through Stage 1 cash flow.
Regarding tailings management, ZIOC has stated that while the base case includes a large wet tailings storage facility (TSF), it is exploring the use of thickened paste or filtered tailings to reduce water content. This alternative could significantly lower long-term management costs, reduce sustaining capital expenditure and allow for a smaller, simpler TSF that can be progressively rehabilitated.

ZIOC estimates that adopting a dry tailings solution could save up to $2-billion in sustaining capex over the life of the mine. A feasibility study on this option has started.

Key Contracts, Suppliers and Consultants
DRA (process plant study); P&C (FDSO evaluation process); Centrale Électrique du Congo (technical, economic, and legal aspects required for power generation and distribution for the Zanaga project's needs for its Stage 1 operations); and Arise Integrated Industrial Platforms (advance the development of the Zanaga project onshore and offshore port infrastructure).

Contact Details for Project Information
ZIOC, email info@zanagairon.com.