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.