Kogi Iron Ltd (ASX:KFE) has completed a test work program to prove the viability of producing a suitable metallised product using Nigerian domestic coal sources for its Agbaja Cast Steel Project.
The testing was undertaken by specialist coal consultant Torex and both coal sources used in the program have the capacity to supply 100% of Agbaja’s needs and are within 70 kilometres of the project.
Kogi said that the coal displayed a satisfactory reduction and metallisation at acceptable temperatures and time periods.
The material did not prove prone to forming aggregates of conglomerates and neither coal source showed any tendency to fuse to the kiln.
Carbon to ore ratios by mass between 20:100 and 35:100 were tested and metallisation of 85.3% was achieved using a carbon ratio of 35:100.
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Kogi’s consultants Tenova said: “The coal is suitable to use as the reductant in the pre-reduction stage and our target level of metallisation of 85% was achieved during the pre-reduction test work carried out by Torex.”
Tenova’s test work program is now complete following the receipt of the coal study from Torex.
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Kogi aims to become a producer of cast steel products by developing its 100%-owned Agbaja project in the Kogi State within the Republic of Nigeria.
Nigeria has substantial domestic demand for steel production, which is largely met through imports.
The Agbaja project opens the opportunity for domestic production of steel billets.