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Equatorial Resources gets green light for Mayoko-Moussondji

Published: 14:40 31 Mar 2014 BST

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Equatorial Resources (ASX:EQX) announced today the Republic of Congo Government has awarded the company an exclusive Mining Licence for its Mayoko-Moussondji iron project.

The group said the government gave the company’s application the green light at a meeting of the Ministerial Council in March. The licence is valid for 25 years initially and can be renewed for further periods of 15 years each.

Equatorial’s licence application included a detailed technical feasibility study, an environmental and social impact assessment, community development plans, and included the completion of technical reviews by the relevant government agencies.

At Mayoko, Equatorial plans to produce 2mtpa of a premium quality 64.1% iron fines product, with operating costs expected to be $41 per tonne. Total capex for the development was estimated in July last year to be $231mln, a capital intensity which is well below Equatorial’s African peers. 

Equatorial’s managing director and chief executive John Welborn said: “The timely approval continues to demonstrate the government’s support for Equatorial and for the Mayoko-Moussondji Iron Project. 

“We look forward to continuing to work with the ROC Government to quickly conclude the associated Mining Convention Agreement for Mayoko-Moussondji.”

Mayoko-Moussondji is immediately adjacent to the Mayoko-Lekoumou Iron Project being developed by Exxaro Resources. 

Mayoko-Lekoumou has similar project advantages to Mayoko-Moussondji and Exxaro is progressing a similar staged development plan, having been granted a mining licence for Mayoko-Lekoumou in 2013. 

Exxaro has invested more than $500 million of capital in the project to date and is expected to achieve first production during the current year.

In today’s announcement, Equatorial indicated that Mayoko-Moussondji is expected to contribute significantly to the ROC’s economy and will directly and indirectly employ and train a significant number of Congolese nationals.


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