Australia’s Baobab Resources is about to select a Chinese partner to complete the selection and purchase of equipment and construction work for a mining project in Tete, Mozambique, the company said in a statement issued Thursday.
The company is currently in negotiations with Chinese steel companies Sinosteel Equipment and Engineering and China Metallurgical Group Corp.
The contract due to be signed stipulates that the Chinese partner will complete the feasibility study, carry out initial tests and submit a proposed contract for the selection and purchase of equipment and for the project’s construction work.
“Baobab’s management team has focused on opportunities to reduce the initial capital required and, while handing over the selection and acquisition of equipment to a Chinese partner, a technically and commercially more favourable route to production may be found,” the statement said.
Baobab has conducted laboratory tests on a sample of 1.5 tons of iron ore with Chinese company Beijing Shenwu Environment and Energy Technology Co Ltd, in search of an alternative reduction technology to the current rotary kiln process.
“Results are expected in March,” Baobab Resources said. (macauhub/MZ)