Maputo, Mozambique — 23 November 2012 – Australian company Baobab Resources is looking for a partner interested in investing in a blast furnace to produce pig iron in the Tete province of Mozambique, says the company’s managing director.
Speaking to Mozambican news agency AIM here, Ben James revealed that prospecting work had shown the existence of 482Mt of iron ore, and that it was likely that further prospecting would find an additional estimated 260Mt.
Macauhub News Agency reports that 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.
James said that preliminary results showed that iron ore could be separated at a relatively lower cost, without requiring a high-energy foundry, which he said, “means a significant saving in terms of capital and operating costs.”
The managing director of Baobab Resources 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 possible maximum production of 4Mtpa.
Source: Macauhub News Agency. For more information, click here.