Zanaga Iron Ore Company Limited (LON:ZIOC) has signed a framework agreement with China Overseas Infrastructure Development And Investment Corporation Limited (COIDIC) to explore ways to progress its project in the Republic of Congo.
The agreement between COIDIC and Jamelles, the joint venture between Zanaga and Glencore that owns the project, will assess mining and transport infrastructure alternatives.
In particular, the priority is to assess the option for iron ore production at Zanaga of 2mln tonnes per annum (2Mtpa) to be delivered to the Pointe Noire special economic zone (SEZ) for a steel production facility
The parties will also seek funding partners for the project and its related infrastructure, with the aim of securing debt and equity financing.
Clifford Elphick, ZIOC’s chairman said in a statement: “We are delighted to announce that a process is underway with China Overseas Infrastructure Development And Investment Corporation Limited to advance the Zanaga Iron Ore Project.
“COIDIC is undertaking a transformational initiative by developing the Pointe Noire Special Economic Zone, which has the potential to provide critical infrastructure to the Republic of Congo."
“The Zanaga Project Team is impressed with the extensive experience that COIDIC and its shareholders have in developing large scale infrastructure projects in Africa including railways, process plants, power plants, ports, and transshipping operations,” he added.