Aim-listed Zanaga Iron Ore Company (ZIOC) and its 100% subsidiary MPD Congo have signed a memorandum of understanding (MoU) with Centrale Électrique du Congo (CEC) to evaluate potential solutions to supply the Zanaga iron-ore project’s power demand, leveraging CEC’s existing assets.

CEC is a private power producer based in Congo-Brazzaville, owned 80% by the government and 20% by Eni Congo.

With an installed capacity of 484 MW from its assets located in Côte Matève and Point-Noire, CEC currently supplies more than 70% of the country’s electricity demand, benefitting from the gas resources developed by Eni Congo.

ZIOC has been actively engaging with multiple power solution providers, including existing producers such as CEC, and power companies seeking to develop additional future power projects in the country.

Under the terms of the MoU, the parties will assess the technical, economic and legal aspects required for power generation and distribution for the Zanaga project’s needs for its Stage 1 operations, allowing it to reach a production capacity of 12-millions tonnes a year of iron-ore with a view to further expansions.

ZIOC aims to develop the Zanaga project, which has a Joint Ore Reserves Committee-compliant resource of 6.9-billion tonnes of iron-ore resource and reserves of 2.1-billion tonnes of iron-ore.

The Zanaga project is planned to be developed in stages, ultimately ramping up to targeted 30-million tonnes a year of iron-ore production capacity.

“ZIOC’s partnership with CEC further reinforces the industry’s view that the Zanaga project is world class, opening the path to establish the required power needs for the project,” ZIOC chairperson Clifford Elphick asserts.

“Together with the recent partnership with Arise to develop bulk mineral export facilities, the partnership with CEC to develop a range of power solutions supports a pathway to further de-risk the Zanaga project from the two largest development challenges, being the availability of adequate power and port infrastructure.

“Such solutions, together with CEC's capability, continue to include progressing hydroelectric and solar options. In having a partner in CEC, I can confidently look forward to achieving our next project milestones,” says ZIOC CEO Martin Knauth.