Kogi Iron Ltd’s (ASX:KFE) metals consultant Tenova Mining & Minerals Australia Pty Ltd has completed test work of ore from the Agbaja Cast Steel Project in Nigeria’s Kogi State, finding it could produce beneficiated iron ore concentrate suited to the production of pig iron and billet.
The West Perth company reported its consultant was currently writing up its findings in a report Kogi was expecting to receive in the coming weeks.
Tenova said the test work produced “a beneficiated iron ore concentrate suitable for the production of pig iron and a refined metal with a grade and composition suitable for the production of billet.”
The contractor also advised it had “not discovered any issues that would materially affect the economic viability of the project moving to the next phase.”
Kogi chairman Dr Ian Burston and chief executive Martin Wood issued a joint statement, saying: “We are excited to have such a positive notice from our consultants and look forward to receiving the formal written reports which will enable us to give further details to our shareholders.”
The company viewed the news as positive and reported it was now in a position to advance its steel project and progress its construction financing efforts.
Kogi said: “To this end Kogi anticipates that it will soon be able to announce progress on the appointment of an independent consultant to assess the steel import and consumption market in Nigeria and other rapidly developing regions of West Africa.”
The company’s proposed next steps are to resume its definitive feasibility study for the project and report progress with potential offtake partners, cornerstone investors and project lenders from the banking sector.
It wrote: “The successful completion of the testwork program will allow both the optimisation of the process for the efficient conversion on a commercial scale of the ore from the Agbaja iron ore deposit to a cast steel product and the completion of detailed capital and operating cost estimates.”
The bankable feasibility study is to include the near completed mine and a cast steel plant.