Glencore Xstrata (“Glencore”) and Zanaga Iron Ore Company (“ZIOC”) (AIM:ZIOC) are pleased to announce a revised scope for the Zanaga Iron Ore Project (“the Project”), changed budgetary arrangements and the commencement of efforts to finance possible project implementation.
The Project Feasibility Study is now being advanced on the basis of a staged development, substantially reducing the initial capital requirement and including the potential for initial production using existing infrastructure.
The Project is working closely with the Republic of Congo Government to advance its development and support the Government’s objectives for infrastructure and mining development in the country. The Feasibility Study will be completed in 2Q 2014, and will then form the basis for an application to the Republic of Congo Government for a Mining Exploitation Licence. Any investment decision for the Project would follow the conclusion of the Feasibility Study.
The decision to proceed in a staged manner significantly enhances the financeability of the Project. As a result ZIOC has agreed to contribute to the budget and work programme which has been extended to Dec 2014.
Glencore and ZIOC have also agreed to jointly explore funding options with a view to attracting third party debt and equity financing for potential project implementation.
About Glencore Xstrata
Glencore Xstrata is one of the world’s largest global diversified natural resource companies. As a leading integrated producer and marketer of commodities with a well-balanced portfolio of diverse industrial assets, we are strongly positioned to capture value at every stage of the supply chain, from sourcing materials deep underground to delivering products to an international customer base. The Group’s industrial and marketing activities are supported by a global network of more than 90 offices located in over 50 countries. Our diversified operations comprise over 150 mining and metallurgical sites, offshore oil production assets, farms and agricultural facilities. We employ approximately 190,000 people, including contractors.
About Zanaga Iron Ore:
Zanaga Iron Ore Company Limited is listed on AIM, ticker: ZIOC and is the owner of 50% less one share interest in the Zanaga Iron Ore Project based in the Republic of Congo (Congo Brazzaville) through its joint venture partnership with Glencore Xstrata. The Zanaga Iron Ore Project is one of the largest iron ore deposits in Africa and has the potential to become a world-class project.