Australian company Baobab Resources has raised its estimates of iron ore deposits in a block in Tete, Mozambique, to 725 million tons, thus adding 60 million tons to previous estimates, the company said in a statement issued Thursday.
The statement said that the Tenge/Ruoni area had 550 million tons of iron ore with a percentage of iron (Fe) of 36.4 percent, which is enough to install a factory to produce pig-iron.
The company’s director general, Ben James noted that test drilling had shown that the amount of iron ore available was significantly higher than previously thought.
James also said that as well as finding over 700 million tons of iron ore, there were also large areas where small drilling tests had found other deposits.
“The final size of this project has yet to be determined,” James said, adding that the resources found so far would allow for annual production of 4 million tons of pig iron over 35 years.
Two days ago the company announced that the progress of the preliminary feasibility study for the pig-iron production project in Mozambique’s Tete province, was the way forward for the other steps outlined in the project’s schedule. (macauhub)