Zanaga Iron Ore Co Ltd (AIM:ZIOC) has confirmed that its flagship project in the Republic of Congo can produce high-grade iron concentrate suitable for use in low-carbon steelmaking, following a fresh round of metallurgical tests.
The AIM-listed company said results from both hematite and magnetite ore types met the strict quality thresholds required for direct reduced iron (DRI) production.
This is a cleaner steelmaking process used in electric arc furnaces, which are gaining ground as an alternative to traditional coal-based blast furnaces.
The test work delivered iron grades of 68.5% and 69.1% respectively for hematite and magnetite concentrates, with low levels of impurities such as silica and alumina.
These results mark a material improvement over those reported in a 2014 feasibility study, particularly in reducing unwanted gangue minerals.
Producing DRI-grade concentrate gives the Zanaga project an edge in supplying a steel industry increasingly under pressure to decarbonise.
Unlike conventional steelmaking, electric arc furnaces primarily use recycled scrap and DRI, and require higher-grade iron feed to function efficiently.
Zanaga said it is now completing an assessment of the potential uplift in the project’s net present value, based on the new product quality. Those results are expected shortly.
Chair Clifford Elphick said: "These encouraging metallurgical results further reinforce our confidence in the Zanaga Project's ability to produce premium-quality iron ore at large scale.
"Achieving DRI grade product quality is a critical step toward enabling the Zanaga Project to supply the rapidly growing electric arc furnace steel producers, positioning the Zanaga Project strategically in the evolving global iron ore market landscape."