Following the recent completion of the test work by Mintek and Tenova, as well as the marketing study undertaken by Fastmarkets MB, Kogi is now in a position to further progress the completion of the DFS by commencing the second and final phase of the Environmental Impact Study (EIS).
The first phase of the EIS was completed in a prior year where full environmental permits were granted for the proposed Agbaja iron ore mine.
This next phase involves bringing the remainder of the project (including the cast steel mill) to full environmental compliance.
The comprehensive base line environmental data that has already been collected will allow this next phase to be completed in a timely and efficient manner.
The new work will include: socio-economic study, biodiversity study, water and soil quality, waste management, health, meteorology, air quality and land use management.
Kogi estimates that an additional $10 million will be required to complete the DFS and take the Agbaja Cast Steel Project to financial close for the funding of the construction of processing facilities and associated infrastructure.
This will include expenditure to be incurred on pit geotechnical work, carrying out early stage civil works on the project, improving local infrastructure and for general corporate purposes.
Key elements of the DFS to be completed include detailed engineering design as well as overall capital and operating expense estimates.
Kogi is in negations with various parties regarding this targeted amount of funding.
READ: Kogi Iron positions Agbaja project to capitalise on extensive Nigerian and regional steel demand
Once the company has secured the funds to complete the DFS, it is estimated that it will take nine months to complete.
Kogi chairman Don Carroll said: “The company continues to progress the milestones required for the completion of the DFS and these next steps build on the significant work done to date.
“We have a clearly defined path that we are following as we continue towards the finalisation of the DFS and ultimately the production of a cast steel product in Nigeria.”