Business
Project Development Strategy Update
Project Development Strategy Update.
About this update from Zanaga Iron Ore Co. Ltd.
[{"type":"text","content":"\n\nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (\"MAR\"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR\n18 March 2025\n \nZanaga Iron Ore Company Limited\n(\"ZIOC\" or the \"Company\")\n Project Development Strategy Update\n \nZanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to announce an updated project development strategy.\nZIOC published an update to the Zanaga Iron Ore Project's (the \"Zanaga Project\" or the \"Project\") Feasibility Study in April 2024, highlighting strong support to progress the Project within its legislated permit status, continued demonstration of robust economics, and a forward work programme to evaluate additional value opportunities to optimise the construction and operation of the Zanaga Project.\nDuring the process of conducting ZIOC's equity fundraise (the \"Fundraise\") announced on 3 March 2025, a number of the investors have been engaging with the Company in evaluating these value adding opportunities. Subject to the closing of the second tranche of the Fundraise expected on 26 March 2025, the Company will be in a position to rapidly advance the workstreams outlined below:\nProject Development Strategy\nFour key workstreams have been identified which have the potential to result in high impact value improvement outcomes for the Zanaga Project. The combined impact from these workstreams is targeted to increase the Net Present Value (NPV) of the Project by more than US$4 billion.\n1. Product Quality Enhancements - Direct Reduction Iron (\"DRI\") test work\nDemand for premium products is driving a major iron ore market shift, with decarbonisation of the steel supply chain expected to result in a supply-demand deficit in premium higher grade iron ore products - reinforcing Zanaga's strategic value. The ability to achieve DRI specification from the Zanaga Project's ores has the potential to transform the value proposition of the Zanaga Project and increase its NPV by up to US$6bn (DRI product price dependent), where significant price premiums could potentially create substantial upside value for the project. New technologies have been proven since the 201...