London, United Kingdom, 13 Dec – Baobab Resources plans to find a strategic partner to help finance its project in Mozambique’s Tete province and start producing iron ore and titanium concentrate as of 2015, the company’s chief executive said.
Speaking to financial news agency Reuters, Ben James said that pre-feasibility studies would be carried out in 2012 and that the company needs between US$500 million and US$750 million to launch production.
Baobab Resources, which has its business focused in Mozambique, already ahs a partnership with the International Finance Corporation, an arm of the World Bank to support development of the private sector in developing countries, which has an 11.45 percent stake in the company and a 15 percent stake in the Tete project.
“The strategic partner we are looking for,” James said, “is to finance the project and drive it into the pre-feasibility phase.”
Baobab Resources expects to be producing 3 million tons of iron ore and half a million tons of titanium concentrate in Tete each year by the end of 2015.
The company is still considering the possibility of processing the iron ore into pig iron in the same area, which would add value to its product. (macauhub)