Zanaga Iron Ore Co Ltd (AIM:ZIOC, FRA:6ZA) told investors that updated costings for a direct reduced iron process plant have lifted the economics of its flagship Zanaga project, giving the company a clearer route into detailed engineering ahead of a targeted 2027 investment decision.
The Republic of Congo iron ore developer said its April 2026 economic case now puts Stage One capital expenditure at US$2.17 billion, with Stage One net present value rising by 30.9% versus the 2024 feasibility update to US$2.54 billion. Stage One internal rate of return increased to 22.5% from 21.4%.
For the combined Stage One and Stage Two development, estimated capital expenditure stands at US$4.05 billion, with NPV increasing 29.4% to US$4.90 billion and IRR moving to 24.3% from 23.0%.
Processing, filter plant and product handling costs were estimated at US$11.95 per tonne of concentrate.
The updated development strategy includes a modular 12Mtpa hematite concentrator complex, thickened tailings storage, a 12Mtpa filter plant and covered concentrate handling facilities.
Zanaga said the base case retains a two-stage pipeline system, although a single 30Mtpa pipeline remains an option for strategic investors seeking a faster ramp-up.
Chief executive Martin Knauth said the completion of the DRI flowsheet costing and OEM studies was “a milestone achievement” for the company, adding that the project’s economics were improving as further study work was completed.
Zanaga also said it and Red Arc Minerals are working towards finalising binding transaction agreements in July 2026, subject to remaining conditions and technical due diligence. The FID process is expected to start in early 2027, with a construction decision targeted by the end of that year.