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Kogi optimises barging costs for Agbaja

22nd January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – An optimisation study of iron-ore developer Kogi Iron’s barging of iron-ore products from its Agbaja project, in Nigeria, has delivered capital savings.

River barges would be used to transport iron-ore from the project to the Gulf of Guinea, by using the Niger river.

The optimisation work was completed as part of the current preliminary feasibility study, and resulted in the removal of the proposed re-handle of iron-ore concentrate at Port Warri, which reduced capital costs.

The previously contemplated Port Warri stockpile and re-handle would be replaced with a river barge to ocean-going barge transfer-station at Escravos, in the Niger river delta.

“The company is pleased with the outcome of the barging optimisation work, which demonstrates that barging transportation of iron-ore concentrate is not only a readily available and effective transport solution, but a most economic option,” said Kogi MD Iggy Tan.

He added that Kogi’s estimated free-on-board transport cost of just under 3c/t per km, or around A$19/t of concentrate, put the company in good stead for a highly competitive overall operating cost estimate in its feasibility study.

The feasibility study on the Agbaja project was expected before the end of the first quarter.

Edited by Creamer Media Reporter

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