Zanaga Iron Ore Co Ltd (AIM:ZIOC) saw its shares rise 14% on Wednesday after confirming that its flagship project in the Republic of Congo can produce high-grade iron concentrate suitable for use in low-emission steelmaking.
Metallurgical tests showed that both hematite and magnetite ore from the Zanaga project meet the quality standards required for direct reduced iron (DRI) production, a process used in electric arc furnaces that avoids coal and supports industry decarbonisation efforts.
The tests delivered iron grades of 68.5% and 69.1% respectively, with significantly reduced impurities compared to a 2014 feasibility study. These improvements could position Zanaga as a supplier of premium-grade iron ore to meet rising demand from greener steel producers.
The company is now evaluating the potential uplift to the project’s net present value based on the new quality metrics, with results expected soon. The findings mark a step forward in unlocking the project's commercial and environmental potential.
The shares rose 1.08p to 8.88p.