In April 2024, Zanaga Iron published an updated Feasibility Study for the Zanaga Iron Ore Project, targeting a 30 million tonnes per annum (Mtpa) staged development underpinned by robust financials. The 2024 Feasibility Study Update demonstrated stronger project economics and reduced capital and operating costs, reinforcing the project’s world-class credentials.
12 Mtpa
Stage One
+18 Mtpa
Stage Two optional expansion
2024 FS Update Results
The updated study was carried out with a higher level of accuracy (~±20%) than many of the intervening review studies, which were at the PEA/PFS level. Cost inputs were refreshed using the latest 2024 market prices while leveraging the infrastructure, flowsheet, and material take-off lists from 2014.
The results emphasised that the Zanaga Project maintains robust economics in the current market environment, which the company believes strengthens its attractiveness to strategic investors.
| Metric | 2014 FS | 2024 Update | Change |
|---|---|---|---|
| Stage 1 Output | 12 Mtpa | 12 Mtpa | |
| Stage 2 Expansion | +18 Mtpa | +18 Mtpa | |
| Stage 1 Capex | $2.22 bn | $1.94 bn | 13% lower |
| Stage 2 Capex | $2.49 bn | $1.87 bn | 25% lower |
| Stage 1 Opex (FOB) | $32.1/dmt | $31.5/dmt | 2% improvement |
| Stage 2 Opex (FOB) | $25.7/dmt | $24.9/dmt | 3% improvement |
| Stage 1 NPV (post-tax) | $3.1 bn | $3.68 bn | 19% higher |
| Stage 1 IRR | 23% | 26.20% | 13% higher |
| Combined NPV (Stages 1 & 2) | $6.6 bn | $7.36 bn | 12% higher |
| Combined IRR | 25% | 28.20% | 13% higher |
Note: 2024 update iron ore prices based on AME Group’s April 2024 long-term real iron ore price forecast for 65% Fe IODEX. Operating costs exclude royalties payable.
Why it matters for stakeholders
- Economic metrics (NPV, IRR, operating cost, capex) show that the project remains financially compelling in the current cost and pricing environment.
- Reinforcement of the potential legacy of infrastructure, jobs, power supply and community development, benefitting local stakeholders and government.
- Revised cost base and improved accuracy provide greater confidence in project viability and funding pathways.
- Clearer signal of the company’s readiness and intent to advance.
Following a technical and commercial evaluation of the process flowsheet to produce premium quality DRI pellet feed concentrates, released in April 2026, the economics of the Zanaga Project have materially improved from the 2024 Feasibility Study (detailed assessment here).