The combination of low cost, high quality Tete pig iron and competitive freight rates to the Middle East give it a production cost advantage over local produced direct reduced iron.
That makes it an ideal raw material source as the region boosts rebar manufacturing capacity, Baobab said.
The marketing results have been used in discussions with potential strategic partners in northern Asia and the Middle East.
Work on a definitive feasibility study is in progress at Tete, which includes metallurgical testwork to define the optimum way to process the ore and recover vanadium as a by-product.
Pilot scale direct reduction trials, using bulk samples of Tenge oxide iron ore, Massamba carbonate and local thermal coal product, are also on-going to confirm the rotary kiln process is the most suitable technology.
Baobab said it is also considering the possibility of increasing the proportion of titanium dioxide in the slag produced.
Elsewhere, talks are on-going on the best way transport the pig iron to port as well as over an off-take agreement for coal produced at the mine at Tete.
A mining title application has being readied for submission while environmental, resettlement and social plans are largely on schedule.
Ben James, Baobab's Managing Director, said: “Overall we are very pleased with the progress being made on the feasibility study.
“Results to date are in line with expectations and continue to de-risk the asset.
“We are also running a continuous process of reviewing and revising our process flow sheets and capital and operating expenditure models to further optimise the fundamentals of this already very competitive project.”