JOHANNESBURG (miningweekly.com) – Aim-listed manganese development and iron-ore exploration company Ferrex on Monday reported that the definitive feasibility study (DFS) on its Nayega project, in northern Togo, was nearing completion.
The company was now focused on accelerating the start-up model to export 250 000 t/y of manganese ore to generate early cash flow.
Further, the Africa-focused company noted that mining convention negotiations with the Togo government had also been concluded. This was a “positive outcome” for both parties, as it outlined the significant contribution of the mine to community development and skills transfer.
Ferrex was now hoping to acquire an exploration permit by the end of the second quarter.
Meanwhile, the company noted that the initial results of the DFS indicated that it would need significantly less capital and lower operating costs to run the mine and that discussions with project financiers and manganese offtakers were progressing positively.
Ferrex’s next step would be to draft tenders for process plant and other major items. “This will allow a contractor to be appointed with the award of the exploitation permit,” the company said in a statement.
"We have made some major advances in progressing Nayega towards development over the last two months. The recent conclusion of the company's detailed negotiations with the government's appointed representative group, Point Focal, is a significant step forward and we are pleased to have achieved a win-win outcome for both parties,” Ferrex MD Dave Reeves said.
The convention, which covered a variety of issues, including taxes, environmental and community requirements and State participation, detailed the company's support of the government's desire to achieve more from the minerals industry.
Togo's government aimed to achieve this through a significant community programme, local skills transfer commitments and government participation, while supporting the company through tax stabilisation and other fiscal incentives.
"In parallel with these discussions, the company will soon complete the modelling and documentation of the accelerated start-up option. The results of this remodelling are yet to be finalised but initial indications appear compelling.
This model, combined with the recent terms agreed in the mining convention, will allow finalisation of the full feasibility results and a maiden ore reserve for the project,” Reeves added.