HomeCentral AfricaXstrata in Congo iron ore project

Xstrata in Congo iron ore project

Xstrata “’ moves
into new Congo
iron ore project
Zug, Switzerland — MININGREVIEW.COM — 24 November 2009 – Swiss-based, diversified mining group Xstrata Plc “’ the world’s fifth biggest diversified mining group by market value “’ has entered into an agreement with Jumelles Limited in respect of the early stage Zanaga iron ore project in the Republic of Congo.

A statement released here said that in terms of the agreement, Xstrata would fund a minimum of US$50 million (R375 million) towards ongoing exploration and a pre-feasibility study, in return for an option to acquire a 50% plus one share interest in Jumelles, the owner of the project.

If Xstrata elects to exercise the option it will fund a feasibility study and associated costs. The agreement also includes a pathway for Xstrata to acquire 100% of the project after completion of the feasibility study.

The statement added that a recently completed Order of Magnitude study for the project had indicated its potential to become a world class iron ore operation.

The project is located in the Lékoumou district of the Republic of Congo, approximately 300 km north-east of Pointe Noire. It will continue to be managed by Jumelle’s highly experienced team led by Colin Harris, formerly project director of Rio Tinto’s Simandou project in Guinea.