Name of the Project
Agbaja iron-ore mining and steel billet project.
Location
Kogi state, Nigeria.
Project Owner/s
Kogi Iron.
Project Description
An updated scoping study completed on the project in July 2022 has determined that the Agbaja iron-ore deposit is of suitable quality and size to supply a long-term operation.
The project entails the development of an integrated mining operation and processing facility to produce steel billets.
The project, based on a small portion of the mineral resource estimate of 586.3-million tonnes grading 41.3% iron, is expected to have a mining production rate of 1.7-million tonnes a year at an average grade of 46.7% iron for an initial life-of-mine of 25 years.
A mining contractor will conduct all site development, overburden and waste removal, openpit mining, including site rehabilitation, as well as haulage and plant feed to a primary crusher.
A traditional truck/excavator openpit development method has been selected for the mine, owing to the shallow nature of the deposit and its corresponding low-stripping ratio.
The study further envisages steel billet production of 500 000 t/y.
The overall steelmaking process comprises four process blocks, each with a particular purpose in the production process. The process stages consist of an ore preparation step, followed by three pyrometallurgical processes.
After the final steel-making process, a continuous casting method will be used to cast steel billets.
The steel billets will be primarily sold in Nigeria to satisfy domestic demand.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return|
The project has an after-tax net present value, at a 10% discount rate, of $1.4-billion and an internal rate of return of 33%, with a payback of four years from the start of development.
Capital Expenditure
$557-million.
Planned Start/End Date
Not stated.
Latest Developments
The updated scoping study forms part of the feasibility work that is under way at Agbaja and is due for completion in the first half of 2023.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Kogi Iron, tel +61 (03) 9692 7222 or email info@kogiiron.com.