PERTH (miningweekly.com) – The Nigerian Ministry of Mines and Steel Development has granted ASX-listed Kogi Iron an additional mining lease covering some 4 km2.
The lease is valid for a period of 25 years, and is renewable, Kogi told shareholders on Friday.
In March, Kogi was granted an initial two mining licences for its Agbaja iron-ore and steel project.
Previously completed prefeasibility studies have estimated that a five-million-tonne-a-year operation could be developed at Agbaja, with capital expenditure estimated at about $497-million. The project is expected to have an average operating cost of $42.98/t of concentrate, and will likely return earnings before interest, taxes, depreciation and amortisation of $136-million a year.