Zanaga Iron Ore Company Limited (LON:ZIOC) said it has completed a concept study to assess the viability of a floating dewatering, storage and offloading port facility at its project in the Republic of Congo.
The company said the study had indicated the potential for a US$184mln reduction to total capital costs of its 12mln tonnes per annum (Mtpa) stage one project to around US$2bn from US$2.2bn.
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Zanaga added that the floating port could produce “significant” net present value and internal rate of return improvements alongside no change to operating costs.
The company has estimated that the floating port will incur a capital cost of US$111mln with an operating cost of US$6.47 per tonne.
Meanwhile, the company said 1Mtpa to 5Mtpa production scenarios are currently under investigation focusing on processing facilities and suitable logistics solutions through the Republic of Congo as well as Gabon.
Zanaga’s project team is also continuing to evaluate the potential for its early production project to operate as a standalone or as an initial pathway to production during the construction period of the 30Mtpa staged development project.
The group added that it has also adopted a number of safety measure to comply with government guidelines on the coronavirus pandemic including closing its office and mine site and providing protective equipment to all employees and subcontractors.
"We are pleased to announce the conclusion of a Concept Study into a Floating Port facility for the Zanaga Project. This evaluation exercise demonstrates the clear potential of a Floating Port facility to enhance significantly the economics of the Zanaga Project through the reduction of upfront capital costs and enhanced Internal Rate of Return”, Zanaga’s non-executive chairman Clifford Elphick said in a statement.
“In addition, there is potential to achieve significant ancillary technical benefits such as reduced environmental impact, elimination of dredging, and significant flexibility on coastal route selection", he added.