2023-12-28 09:50:13
(Alliance News) – Zanaga Iron Ore Co Ltd said on Thursday it has signed an agreement with China Machinery Engineering Corp regarding hydropower solutions for the Zanaga iron ore project.
Zanaga shares rose 28% to 11.20 pence each in London on Thursday morning.
The Republic of Congo-focused iron explorer said the MoU was reached following CMEC’s preliminary inspections and engineering of potential hydropower sites near the Zanaga project.
Zanaga said the agreement was reached with the following objectives: to advance engineering and related studies for identified hydroelectric sites near the Zanaga project; and develop arrangements for financing the development and operation of identified hydroelectric projects, between the Government of the Republic of Congo and third parties.
Zanaga also provided an update on its feasibility study with an unnamed Chinese engineering, procurement and construction partner.
The initial review and cost re-evaluation phase of the 2014 feasibility study has been completed, indicating potential cost reductions compared to the 2014 study.
Zanaga said phase 2 of the market investigation and financial modeling is ongoing and will now be extended until the first quarter of 2024 given the “comprehensive nature of the update”.
“The ZIOC Feasibility Study Update process is progressing well and has identified a number of potential value engineering opportunities,” said Chairman Clifford Elphick.
By Greg Rosenvinge, Alliance News senior reporter
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