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 (NPV), 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
Kogi Iron announced a $5-million capital raising programme on March 30, comprising a $1.73-million share placement and an upcoming share purchase plan (SPP) to raise up to $3.3-million.

Kogi said at the time that the capital committed in the placement and any capital raised through the SPP would provide funding to expedite several initiatives and milestones this year.

The key activities that will be advanced include conducting macro-drilling, as well as providing an updated scoping study and continuing the definitive feasibility study.

The company intends to start drilling as soon as possible, with an initial 5 000 m reverse circulation programme to follow up historical drilling conducted on the project by previous owners.

A programme of works approval has been lodged with the Western Australian Department of Mines, Industry Regulation and Safety.

Further, following initial engagement with the traditional owners, Kogi expects that the heritage survey over the project will start soon.

Kogi has said that the Agbaja project economics are sensitive to higher sales prices.

Therefore, the company has commissioned commodity pricing consultancy Fastmarkets to complete an updated market feasibility report. This updated report will include the provision of a steel billet sales price forecast integral to the Agbaja project’s financial model.

The company expects that position to strengthen following the completion of the Fastmarkets report and the likely positive impact it will have on the scoping study and the project NPV.

Meanwhile, key feasibility study activities will continue, including a detailed testing programme, project design, energy and power study, offtake negotiations and discussions with project financiers.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Kogi Iron, tel +61 7324 4047 or email info@kogiiron.com.