ASX-listed Kogi Iron has embarked on the second and final phase of the environmental impact study (EIS) as part of the definitive feasibility study (DFS) for the Agbaja cast steel project in Nigeria.
Nigeria – The EIS work at the Agbaja project, which is 100%-owned by Kogi Iron subsidiary KCM Mining, follows the recent completion of the testwork by Mintek and Tenova, as well as the marketing study undertaken by Fastmarkets MB.
The first phase of the EIS was completed in a prior year where full environmental permits were granted for the proposed Agbaja iron ore mine. This next phase involves bringing the remainder of the project (including the cast steel mill) to full environmental compliance and the already completed comprehensive base line environmental data that has been collected will allow this next phase to be completed in a timely and efficient manner.
This work will include: socio-economic study, biodiversity study, water and soil quality, waste management, health, meteorology and air quality and land use management.
The company estimates that an additional US$10 million will be required to complete the DFS and take the project to financial close for the funding of the construction of processing facilities and associated infrastructure for the Agbaja cast steel project. This will include expenditure to be incurred on pit geotechnical work, carrying out early stage civil works on the project, improving local infrastructure and for general corporate purposes.
Key elements of the DFS to be completed include detailed engineering design as well as overall capital and operating expense estimates.
Kogi Iron is in negotiations with various parties regarding this targeted amount of funding and will update shareholders when definitive agreements have been reached.
Once the company has secured the funds to complete the DFS, it is estimated that it will take nine months to complete.
The company is also keeping prospective export credit agencies updated of the progress that is being made.
“The company continues to progress the milestones required for the completion of the DFS and these next steps build on the significant work done to date. We have a clearly defined path that we are following as we continue towards the finalisation of the DFS and ultimately the production of a cast steel product in Nigeria,” Kogi Iron chairman Don Carroll comments.