Zanaga Iron Ore Co. Ltd. said Dec. 11 that Jumelles Ltd., its joint venture firm with Glencore PLC, entered a framework agreement with China Overseas Infrastructure Development and Investment Corp. Ltd. for potential cooperation on the Zanaga iron ore project in the Republic of Congo.
The agreement reflects the intent of the parties to explore cooperation opportunities to progress the infrastructure and financing requirements for the project, both in the near and longer term, and its integration with the objectives of the Pointe-Noire Special Economic Zone.
The project is planned to be divided in several stages, from 1 million tonnes per annum up to 30 Mtpa.
The company noted that the objective of the agreement is to cooperate closely regarding the targeted 1 Mtpa to 5 Mtpa production from the project as a near-term development option. This involves the construction of a steel mill plant in the Pointe-Noire SEZ, capable of taking delivery of about 2 Mtpa of iron ore from the project, as well as logistical solutions for the export of Zanaga iron ore to Chinese steel mill customers.
The parties intend to develop a joint initiative to introduce funding partners for the project, and its related infrastructure, with the aim of securing debt and equity financing.
The agreement is valid for two years and can be extended depending on the parties' mutual decision.