Angolan Geology and Mines Minister Francisco Queiroz has stated that the iron-ore project in the community of Cutato, Cuchi municipality, Cuando Cubango province, is “well advanced”. He was speaking after a joint meeting last week of the Economy and Real Economy Committees of the Council of Ministers (Cabinet). He further stated that the project had an estimated cost of $200-million and, in its first phase, would create at least 300 jobs.

The project is being developed under the leadership of Brazilian group Modulax, which has formed a public–private joint venture with Angolan State-owned company Ferrangol and the Sociedade Mineira do Cuando Cubango (Cuando Cubango Mining Company), called the Companhia Siderúrgica do Cuchi (CSC – Cuchi Steel Company). Cuchi lies some 94 km from the provincial capital of Menongue. The intent of the project is to mine iron-ore and use it to pro-duce pig iron.

In June, it was reported in the Angolan media that Phase 1 of the project would start operations in December. This first phase involves the development of the iron-ore mine itself and the construction of a crushing plant designed to feed a furnace with a usable volume of 119 m3. Production capacity will be 96 000 t/y of pig iron. The furnace will use charcoal in place of coking coal, as the charcoal can be produced locally. Phase 1 includes the construction of an airstrip, 2 300 m long and 45 m wide. Further, Caminho De Ferro Moçamedes (Moçamedes Railway, which runs 860 km from the coastal city of Namibe to Menongue) is building a branch line to the pig iron works.

Phase 2 will see the construction of a larger crusher which will supply a bigger furnace (with a usable volume of 500 m3) and result in a production capacity of 420 000 t/y to 600 000 t/y. To make this possible, a 60 000 ha eucalyptus plantation will be set up. Queiroz stated that development of this plantation will start next year. The trees will be used to produce the charcoal for the furnaces.

The development of the Cuchi project fits in well with the Angolan government’s national economic diversification programme. Indeed, it is a strategic objective in the National Development Plan 2013/2017. Apart from diversifying the economy and reducing its dependence on oil and gas, it will bring in valuable revenues for the State. Once in full production, CSC is expected to create some 5 000 jobs, mainly for local youths, and stimulate the socioeconomic development of the region, creating subsidiary commercial and industrial undertakings.

Back in June, Cuchi municipal administrator Verónica Mutango praised the government’s approval of the project. “The exploitation of iron-ore in the community of Cutato is the biggest win for our residents in the 40 years of national independence,” she said, “keeping in view that this project will allow many young people to get their first job.”

However, some local residents in the Cutato area are having to be relocated. This process has already started. Local and traditional authorities were briefed on the project and its implications and the need to move people to locations at a safe distance from the mine and works. At that time, Mutango assured that the constitutional rights of the people would be respected. Two hamlets of about 100 families each were identified as being affected by the development of the project.