en.Wedoany.com Reported - AIM-listed Zanaga Iron Ore Company (ZIOC) has completed its strategic plan for the Zanaga iron ore project in the Republic of Congo, which includes the evaluation results for producing high-quality direct reduction iron (DRI) pellet feed concentrate. The company stated that the plan has strengthened confidence in the project's economic potential, with significant value enhancement since its launch in March 2025.
ZIOC indicated that the plan has achieved its core objectives, providing a pathway for detailed engineering ahead of the Final Investment Decision (FID) targeted for mid-2027. Completed work includes confirming DRI product quality, updating costs through OEM quotations, and completing the feasibility study for the modular hematite processing facility. Updated data shows Phase 1 capital expenditure of US$2.17 billion, a Net Present Value (NPV) of US$2.54 billion, and an Internal Rate of Return (IRR) of 22.5%. Combined Phase 1 and 2 operations show capital expenditure of US$4.05 billion, an NPV of US$4.9 billion, and an IRR of 24.3%.
ZIOC CEO Martin Knauth said: "The results confirm that the integrated DRI production modular concentrator plant design, combined with thickened tailings technology, dedicated pipelines, and concentrate handling facilities, has enhanced project value while maintaining returns." Chairman Clifford Elphick added: "As demand for high-grade, low-carbon iron ore grows, Zanaga is well-positioned to play a key role."
Regarding the strategic investment, ZIOC is pleased with the progress of the proposed investment in Red Arc Minerals, with several key conditions having been met. The final transaction agreement is targeted for completion in July, after which shareholder and regulatory approvals will be required. The company plans to issue a shareholder circular and notice of general meeting following the signing of the final documents.
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