HomeBase MetalsBaobab pig iron project well ahead of schedule

Baobab pig iron project well ahead of schedule

Close-up view of
drill-core at Baobab’s
pig iron project in
Perth, Australia — 21 February 2013 – Australian-based and listed mining company Baobab Resources says the progress made to date in the preliminary feasibility study for its pig-iron project in the Tete province of Mozambique, is the way ahead of schedule.

A detailed pre-feasibility study (PFS) work programme was commissioned in January 2012 and is nearing completion, reports Macauhub News Agency.  The PFS is assessing a base-case of 1Mtpa pig iron production over a minimum 20-year mine life, with increased production models at 2Mtpa and 4Mtpa.

“We are so confident in the results of the preliminary study that we have decided to move ahead with more complex and critical parts of that study,” said director general Ben James.
One of the most important aspects of the preliminary feasibility study is related to estimated capital costs, specifically for acquisition of equipment to be used at the mine.

Speaking at the end of last year, James said that prospecting work had shown the existence of 482 Mt of iron ore, and that it was likely that further prospecting would find an additional 120 to 260Mt.

Pig iron is the product of smelting iron ore with coking coal, or coal and limestone in a blast furnace. It has few immediate uses as it is a brittle metal but is used as the raw material by steel works to produce cast iron and steel.

The Baobab Resources managing director noted that the concession in Tete had enough iron ore to support production of 1Mtpa of pig iron for over 100 years, and added that the company was working on several production scenarios with maximum production of 4Mtpa.

Source: Macauhub News Agency. For more information, click here.