The progress of the preliminary feasibility study for the pig-iron production project in Mozambique’s Tete province, is the way forward for the other steps outlined in the project’s schedule, Australian company Baobab Resources said Tuesday.
“We are confident in the results of the preliminary study that we have decided to move ahead with more complex and critical parts of that study,” said director general Ben James, according to the statement.
One of the most important aspects of the preliminary feasibility study is related to estimated capital costs, specifically for acquisition of equipment to be used at the mine.
Speaking at the end of last year, James said that prospecting work had shown the existence of 482 million tons of iron ore, and that it was likely that further prospecting would find an additional 120 to 260 million tons.
Pig iron is the product of smelting iron ore with coking coal, or coal and limestone in a blast furnace. It has few immediate uses as it is a brittle metal but is used as the raw material by steel works to produce cast iron and steel.
The managing director of Baobab Resources noted that the concession in Tete had enough iron ore to support production of 1 million tons of pig iron per year for over 100 years and added that the company was working on several production scenarios with maximum production of 4 million tons per year. (macauhub)