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Highlights
- Akora Resources (AKO) confirms high-quality DSO from the Bekisopa project.
- Development focuses on green steel production with reduced carbon emissions.
- Pre-feasibility studies highlight promising ore grades and product mix potential.
Akora Resources (ASX:AKO) has reaffirmed the potential of its Bekisopa iron project in Madagascar, highlighting its capacity to produce high-quality direct shipping ore (DSO) suitable for specialist refining. The project aligns with the growing demand for environmentally friendly steel production methods, utilizing advanced direct reduced iron-electric arc furnace technology, which minimizes carbon emissions by eliminating coal use. This technology mandates iron ore grades of at least 67%, which the Bekisopa project seeks to achieve.
Key Developments in Pre-Feasibility Studies
Recent pre-feasibility study (PFS) work at Bekisopa has demonstrated promising results, with extensive testing showcasing an impressive product split of 71% iron ore fines and 29% lump product. The lump product yielded an average grade of 65% iron, while the fines product averaged 61% iron, both derived from a feed grade of 62% iron. These results underscore the project’s capacity to deliver two premium-grade DSO products for the steelmaking industry.
Akora Resources’ managing director commented on the significance of these findings, emphasizing that Bekisopa’s lump product aligns with the preferred feedstock for blast furnaces. This positions the project to potentially secure grade and lump premiums in the steel manufacturing market.
Scoping Study Highlights
Akora’s November 2023 scoping study evaluated Bekisopa’s economic viability using a long-term benchmark iron ore price of US$100 per tonne, coupled with a lump premium of US$12 per tonne. While the study refrained from assigning premiums or penalties based on product grades, it confirmed that the current product mix aligns with market expectations, ensuring the project’s financial viability under typical market conditions.
Focus on Enhanced Product Mix and Grades
Looking ahead, Akora Resources (AKO) aims to refine the Bekisopa product mix as part of the PFS, with additional magnetic separation upgrade trials underway to boost the iron grades of fines material. The initial development phase targets annual production of up to 2 million tonnes of 60% iron-grade DSO over the first five years. This production will support further development of the company’s additional iron ore assets across Madagascar, providing a steady cash flow for ongoing expansion.
The Bekisopa project represents a step forward in sustainable steel production, reflecting Akora’s commitment to meeting the demands of a low-carbon future while leveraging Madagascar’s iron ore potential.
