Name and Location
Tete pig iron and ferrovanadium project, Mozambique.

Client
Baobab Resources.

Project Description
A prefeasibility study (PFS) completed on the Tete project has confirmed a strategic asset of global significance, based on a one-million-tonne-a-year pig iron operation over a minimum 20-year mine life. This will result in the development of 110-million tonnes of ore – 15% of the total 727-million-tonne resource, of which 553-million tonnes are defined as underlying the 2.5 km² footprint of the Tenge/Ruoni prospect. This highlights the opportunity for expanded production scenarios of two- to four-million tonnes.

The proposed one-million-tonne-a-year pig iron production will result in about 25 000 t/y of vanadium slag by-product, with 3 300 t/y of contained vanadium or 5 900 t/y of vanadium pentoxide. At a vanadium recovery rate of 78%, this equates to a potential final contained vanadium capacity of 2 590 t/y.

Titanium from the slag is technically not proven and not considered an option at this stage of the project.

The modular character of the plant equipment supports a staged development model, thereby limiting initial financial exposure.

Value
The base case scenario of one-million tonnes a year of pig iron production estimates capital expenditure of $1.14-billion.

Duration
Not stated.

Latest Developments
Project management services company Tenova Mining & Minerals South Africa – an operating arm of the global Tenova Mining & Minerals group – is conducting the definitive feasibility study (DFS) for Baobab’s pig iron and ferrovanadium project.

The DFS, which started in January and is scheduled for completion in September, covers the beneficiation and smelting of one-million tonnes a year of high-quality, low-impurity pig iron, with Tenova Mining & Minerals group company Tenova Pyromet Consulting undertaking the smelting plant aspect of the study.

Tenova says the remoteness of the site and the difficulty in accessing it are major challenges; therefore, the logistics part of the DFS will evaluate transport infrastructure requirements, including the trucking of coal to the site, the trucking of pig iron to a railway siding and transporting this material by rail to the ports of Beira and Nacala.

The study will also take into account the significant infrastructure investments being made in the region. These include rail corridors, which are being refurbished and expanded, linking the Tete province with the coast, as are the ports of Beira and Nacala.

In addition, in conjunction with another consultant, Tenova will also assess the possibility of cogenerating off-gases that could be converted into power.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Baobab Resources, tel +61 8 9430 7151, fax +61 8 9430 7664 or email info@baobabresources.com.