Zanaga Iron Ore Co Ltd (AIM:ZIOC) has struck a new agreement, with Électrique du Congo (CEC), to explore potential power supply solutions for the Zanaga Iron Ore Project.
It will see the technical, economic and legal aspects of power generation and distribution aspects of the project assessed for the mine’s Stage One operations.
In Stage One, the project will target some 12 million tonnes per year of iron ore production.
Today’s new partnership follows the December announcement of an agreement with infrastructure firm Arise to advance work to develop port facilities.
"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,” ZOIC chief executive Martin Knauth said.
“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."
CEC, a power producer in the Republic of Congo, operates some 484 MW of installed capacity from assets in Côte Matève and Pointe-Noire, and supplies more than 70% of the country's electricity demand.
It is a partnership that’s 80% owned by the government, alongside Eni.
At the same time, ZIOC is also evaluating hydroelectric and solar power options to support long-term expansion.