Australian company Baobab Resources has said that the latest update of iron ore resources available in the Tenge-Ruoni region, in Mozambique’s Tete province, point to the possibility of a large pig-iron operation.
The update, which was made by Australian consultancy Coffey Mining, increased estimates for existing iron ore reserves to 727 million tons.
As well as this, the update showed that of the total estimated reserves, 535 million tons are concentrated in an area of just 2.5 square kilometres.
The economic pre-feasibility study carried out by Baobab Resources showed there was enough potential in the block to produce 1 million tons of pig iron per year and gave the project a net value of US$1.3 billion.
The Australian company on 2 February began its final economic feasibility study.
In this project, in which it has a stake of 85 percent, Baobab Resources’ partner with the remaining 15 percent, is the International Financial Corporation (IFC) of the World Bank group. (macauhub)