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
Bench- and pilot-scale metallurgical testwork at Baobab’s Tete pig iron and ferrovanadium project have confirmed the chosen technology route for the project.

The results, to date, have also identified areas where process optimisation has the potential to significantly improve the robust economics of the 2013 prefeasibility study (PFS).

Direct reduction testwork has achieved up to 65% metallisation using coarse iron concentrate and local coal, while optimisation trials testing the direct reduction characteristics of pelletised iron concentrate and local coal have returned significantly improved results of up to 93% metallisation.

“The higher metallisation and consistent sizing of pellets would enhance kiln performance and furnace productivity, thereby improving operating costs,” the company says.

Further, the company notes that it has conducted pilot trials simulating a smelting operation where melting is achieved and a titanium slag generated and removed, after which the molten, vanadium-bearing, hot metal is refined to produce a vanadium-rich slag and a pig iron.

These tests have confirmed that the titanium could be readily separated from the iron as a primary slag and that the secondary vanadium slag recovery stage is successful, with more than 80% of the total vanadium reporting to the vanadium slag.

The company has indicated that these vanadium results are in line with global benchmark operations in New Zealand and South Africa, adding that the final pig iron product reported low impurities and is within commercial specifications.

Further, Baobab, in conjunction with various potential partners, has been closely assessing opportunities to reduce capital and operating costs, thereby further mitigating execution risk and improving investor returns.

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.