viewZanaga Iron Ore Co Ltd

Zanaga Iron Ore has one of the most significant undeveloped iron ore projects on the market


A huge undeveloped iron ore project in the Republic of Congo could be about to come to life

Gem Diamonds Limited -

Quick facts: Zanaga Iron Ore Co Ltd

Price: 8.04 GBX

Market: AIM
Market Cap: £24.12 m
  • Huge undeveloped iron ore resource
  • Significant work already completed
  • Major partners involved in infrastructure plans


What does the company do?

Zanaga Iron Ore Co Ltd (ZOIC) is an iron ore development company run by seasoned mining industry professionals, including Clifford Elphick, the founder of Gem Diamonds Ltd (LON:GEMD).

What does the company own?

Zanaga’s principal asset is the Zanaga iron ore project located in the south-west of the Republic of Congo, which it owns in joint venture with Glencore PLC (LON:GLEN).

Several different production scenarios remain under consideration for the Zanaga project, including an option to mine as much as 30mln tonnes of ore per year. That scenario would involve a two-stage development, with initial production set at 12mln tonnes per year, and a further 18mln tonnes to be added later, once cash flow starts coming in.

There’s also potential for a direct shipping ore operation, mining at the rate of two million tonnes per year. This could lead to early cash flow, and would involve lower up-front costs.

How will development be funded?

With potential capital expenditures of upwards of US$2bn, finding funds for development will be key to Zanaga in the months and years ahead. As things stand, the company has helped put in place a framework agreement for infrastructure development with the major players in the area, specifically Glencore and the Chinese Overseas Infrastructure Development and Investment Corporation (COIDIC).

The parties intend to develop a joint initiative to introduce funding partners for the Zanaga Project and its related infrastructure, with the aim of securing debt and equity financing.

In June, Zanaga said it has also entered a subscription agreement with Shard Merchant Capital, under which some 21mln shares will be issued in up to three tranches.

How it's doing

Discussions are continuing with Glencore and possible Chinese partners in regard to the development of the project.

In January 2021 it secured just over £400,000 in new funding.



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