Kogi State Iron Nears Trial Mining Completion

ASX-listed Kogi Iron has advised that it is nearing the quit of its small-scale trial iron-ore mining at the Agbaja Cast Steel assignment in Kogi State, Nigeria. The organization is in the procedure of conducting trial mining on site, as well as a number of community activities, together with water clarification and float tests earlier than the Irimi-Okpaka Water Bore is installed.

Kogi Iron is also evaluating the environmental and social benefits, as well as local business opportunities, from the deliberate iron-ore mine. The trial mining is assisting to inform a feasibility learn about for the Agbaja project, which is allowing the enterprise to do steel refining exams and work on its investment policy – comprising gasoline furnish and market entry.

Kogi Iron has applied to the World Bank MinDiver Project for funding, for which the company needs to furnish a stakeholder engagement and neighborhood plan, as nicely as environmental and social management plans.

The business enterprise explains that scopes of work for feasibility learn about consultants have been revised to concentrate on critical course decisions and key assignment price drivers in the close to term, while retaining cash, pending full funding.

Consultants’ mandates will be stepped forward as soon as initial funding is secured including: PricewaterhouseCoopers (Nigeria) for corporate advisory on gasoline grant and market entry policy; Tenova Pyromet (in South Africa) and Uvan Hagfors Teknologi (Sweden) for steel refining tests and engineering; Lantosmon for environmental and water management; FastMarkets for market studies and offtake strategy; SRK Consulting for an iron-ore reserve estimate and mine plan, ore beneficiation plant, and tailings and water management. READ Hon BEST: A Representative With Large Heart Further, the organization wants to interact AGV Mining for ore reserve drilling, mining and website online works and PW Nigeria for civil works, infrastructure and logistics.

See also  Kogi LGA Chairman Intercept Truck Loaded With Fulani

Kogi Iron MD David Turvey says the company’s staged fundraising sketch will start out with preliminary funding of about $1-million to $2-million for early works and quintessential course fee drivers towards the feasibility study. An probability may additionally exist for a small fairness raise from personal individuals, but the larger target fundraising of the last $6-million to $7-million for the assignment should be a aggregate of equity, convertible notes and other hybrids.

Turvey explains that traders are wary of the project being in a very early stage, whilst Covid-19 has additionally contributed to buyers de-risking their investments in equity markets.

Additionally, while traders well known the medium-term returns from Agbaja, different possibilities exist in lower-risk nations compared with Nigeria. Institutional buyers will only be interested to make investments large amounts of capital once the feasibility study is complete. Turvey remains assured about and dedicated to growing the iron-ore and steel project.

Be the first to comment

Leave a Reply

Your email address will not be published.


*