Name and Location
Mayoko-Moussondji iron-ore project, Republic of Congo (RoC).

Client
Equatorial Resources.

Project Description
A scoping study completed on Mayoko-Moussondji has identified an immediate pathway to a two-million-tonne-a-year hematite mining operation, producing a premium product that will be transported using existing railway and port facilities.

The study was based on indicated and inferred resources of 766.8-million tonnes, grading 31.9% iron.

It investigated Equatorial’s three-stage development plan for Mayoko-Moussondji, incorporating the hematite and magnetite components of the maiden resource. However, only the first two stages are discussed.

In Stage 1, Equatorial plans to produce a Mayoko premium fines iron product, grading 64.1% iron, starting at 500 000 t/y and ramping up within 18 months to two-million tonnes a year during Stage 2.

Based on the initial hematite resource, the operating life-of-mine is estimated at 23 years.

Given the friable nature of the hematite resource, minimal blasting will be required in the mining operations, which will start using small 40 t articulated dump trucks and excavators, focusing first on the colluvial zones within the resource.

The flowsheet for the proposed processing plant for Mayoko-Moussondji is designed to treat the hematite mineralisation types and employs a typical iron-ore processing circuit, comprising scrubbing, wet screening, and magnetic and gravity separation.

A conventional tailings storage facility using the natural topography and starter embankments has been proposed and costed for the early years.

The scoping study has identified that the refurbishment and upgrade of the rail line required to increase capacity is best achieved by a staged approach involving incremental development.

This approach is in line with Equatorial’s own staged approach to production from Mayoko-Moussondji and greatly reduces the requirement for initial capital expenditure.

Value
The initial capital expenditure required for first production has been estimated at $114-million, with the total capital cost required to achieve two-million tonnes a year estimated at $231-million.

However, the total capital cost could be reduced through leasing arrangements on rolling stock, improvements in tailings management and through partnership opportunities with neighboring company Exxaro Resources.

Duration
Development time, from the final investment decision to first production, has been estimated at 15 months.

Latest Developments
Despite the iron-ore price dropping below $100/t, Equatorial Resources tells Mining Weekly that its confidence in its iron-ore projects in the Republic of Congo remains strong.

Equatorial Resources is well advanced along the pathway to production, having received a mining licence from the government, and hopes to conclude the neccessary negotiations for the project’s mining convention agreement in the third quarter of this year. The mining convention agreement is expected to include rights and terms of access to the government-owned railway and port – a crucial commercial step for the project and the company.
The company’s current focus is on the first and second stages of the project, which will be based on the near-surface hematite material. “The large underlying magnetite orebody represents an opportunity for a much larger-scale future operation,” says Equatorial Resources CEO John Welborn.

“A significant advantage of our planned operations is that the project is modular and scalable and, while we are working on a two-million-tonne-a-year operation, we see a much larger opportunity. We have quite modest ambitions for the first stage of the project,” he says.

Nevertheless, Welborn highlights the “compelling economics” of the first phases of the project, as the scoping study identified a total capital cost of only $231-million get to two-million tonnes a year and an operating cost for free-on-board iron of $41/t.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Equatorial Resources, tel +61 8 9466 5030, fax +61 8 9466 5029 or email info@equatorialresources.com.au.