JOHANNESBURG (miningweekly.com) – Discussions were under way to secure funding for the first phase of Aim-listed Bellzone’s flagship Kalia project following the completion of a bankable feasibility study (BFS).
The BFS, the results of which were released on Tuesday, revealed that the initial development of Kalia's Phase 1 (KP1) high-grade oxide mineral resources at the proposed Guinea-based openpit iron-ore project would cost $865-million.
This would see the company hauling out seven-million tonnes of iron-ore a year for the first ten years of production – the estimated life-of-mine of KP1 – from the second half of 2015, with the first exports scheduled for the first half of 2016.
The study showed that the Kalia Phase 1 development could deliver a positive return on investment on a standalone basis without the need for rail infrastructure.
The development of KP1 also provided the platform for future expansion of the lower grade oxide from Kalia Phase 2 (KP2), which would extend the operation’s life-of-mine by 15 years, as well as the large magnetite resources contained within Kalia Phase 3 (KP3).
KP2, which would be funded from KP1 cash flows, required additional process facilities to treat the lower grade oxide. KP3 would be dependent on the development of a bulk transport solution, including railway and deep-water port infrastructure.
The product would be transported from Kalia to the Konta port after the completion of construction of a 285 km stretch of new road connecting to the existing haul road from the Forécariah operations, a joint venture between Bellzone and the China International Fund.
The BFS included the cost of a new dedicated bulk-handling port at Konta, designed and costed by Fluor. However, there was potential to upgrade the current port at a reduced capital cost.