Glencore Xstrata advances Zanaga iron ore project

13th Sep 2013 07:05

Glencore Xstrata announced a revised scope for its Zanaga iron ore project with a changed budget and efforts to finance work.The company said the project feasibility study is now being advanced on the basis of a staged development, substantially reducing the initial capital requirement and including the potential for initial production using existing infrastructure.The firm and joint venture partner Zanaga Iron Ore Company (ZIOC) are working with the Republic of Congo Government to support the infrastructure and mining development of the country. The feasibility study will be completed in the second quarter, which will form the basis for an application to the government for a mining exploitation licence. ZIOC has agreed to contribute to the budget and work programme which has been extended to December 2014.Glencore and ZIOC are also seeking funding options from third party debt and equity financing for potential project implementation.RD