The SNC Lavalin company is about to finish its engineering studies for the project to process iron ore into pig iron in Tete province, Mozambique, Australian company Baobab Resources said Tuesday in Fremantle, Australia.
The company, which is listed on the Alternative Investment Market (AIM) of the London Stock Exchange, also said that the studies would provide a clearer estimate of the capital needed and the costs of production for exploration of the iron ore mine in Tete, which has estimated reserves of 159 million tons.
Additional studies are being carried out by Baobab Resources to determine the commercial potential of sub-products such as vanadium and titanium.
Baobab Resources has finished its drilling programme in the Ruoni Flats region, where it found an ore seam 100 metres deep.
The company is currently in talks with both the government and the private sector operating in Mozambique about the logistics network needed to carry the ore away from the mine, as well as energy requirements. (macauhub)