Name of the Project
Agbaja iron-ore mining and steel billet project.
Location
Kogi state, Nigeria.
Project Owner/s
Kogi Iron.
Project Description
The project is planned to mine iron-ore and produce competitively priced steel billet for the Nigerian domestic market.
A scoping study has been completed as part of the ongoing feasibility study on the project and has shown the potential for strong financial metrics, based on a proposed standalone openpit supplying a conventional crush, screen scrubbed iron-ore product to a steel billet plant at the project site.
The project is based on mining a small proportion of the 586-million-tonne indicated and inferred resource grading 41.3% iron. Only 41.6-million tonnes of this is required for the initial 25-year mine life considered in the scoping study.
The scoping study proposes an operation mining 1.7-million tonnes a year at an average grade of 46.7% over the life-of-mine, and steel billet production of about 500 000 t/y.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $273-million and an internal rate of return of 14%, with a payback of six years from the start of development.
Capital Expenditure
The project is estimated at $507-million.
Planned Start/End Date
Not stated.
Latest Developments
The scoping study has given Kogi the confidence to rapidly progress the project to the next phase. The balance of the feasibility study will comprise additional testwork, environmental permitting, detailed mining and plant design, a resource upgrade (if required), and other study aspects.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Kogi Iron, tel +61 7324 4047 or email info@kogiiron.com.