Business
Project Update and Floating Port
Project Update and Floating Port.
About this update from Zanaga Iron Ore Co. Ltd.
[{"type":"text","content":"\n \n \n RNS Number : 1370O\n Zanaga Iron Ore Company Ltd\n 28 May 2020\n \n \n \n \n 28 May 2020\n \n \n \n \n \n Floating Port Announcement and Project Update\n \n \n \n \n \n Zanaga Iron Ore Company Limited \n (\"ZIOC\" or the \"Company\")\n (AIM: ZIOC) is pleased to provide an update to shareholders on the Zanaga Iron Ore Project (the \"Zanaga Project\").\n \n \n Highlights\n \n \n · \n Floating Offshore Port facility\n \n \n o \n Concept Study completed on the viability of a Floating Dewatering, Storage, and Offloading port facility (\"FDSO\" or \"Floating Port\")\n \n \n o \n Potential indicated for $184m reduction to capital costs of the 12Mtpa Stage One development phase of the 30Mtpa Project\n \n \n o \n No change expected to operating cost, significant NPV and IRR improvement\n \n \n · \n Early Production Project\n \n \n o \n 1-5 Mtpa production scenarios under investigation focusing on processing facilities and suitable logistics solutions through Republic of Congo (\"Roc\") and/or Republic of Gabon (\"Gabon\")\n \n \n · \n COVID-19 update\n \n \n \n \n \n Clifford Elphick, Non-Executive Chairman of ZIOC, commented:\n \n \n \"We are pleased to announce the conclusion of a Concept Study into a Floating Port facility for the Zanaga Project. This evaluation exercise demonstrates the clear potential of a Floating Port facility to enhance significantly the economics of the Zanaga Project through the reduction of upfront capital costs and enhanced Internal Rate of Return. In addition, there is potential to achieve significant ancillary technical benefits such as reduced environmental impact, elimination of dredging, and significant flexibility on coastal route selection.\"\n \n \n Floating Port Study Results\n \n \n Following an approach in 2019 from a leading EPC company specialized in the development of floating mooring and operating facilities, in recent months the Zanaga Project Team \n (the \"Project Team\")\n have been actively investigating the potential to utilise an offshore floating port instead of the transhipping solution envisaged by the 2014 Feasibility Study (the \"2014 FS\").\n \n \n Transhipping Solution Background\n \n \n The 2014 FS transhipping solution involved Zanaga's slurry pipeline terminating at the coast of RoC, whereby the slurry material would be dewatered in a coastal ba...