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Highlights:
- Power Supply Partnership: ZIOC and CEC will assess technical, economic, and legal aspects for providing power to the Zanaga Iron Ore Project’s Stage One operations.
- CEC’s Energy Capabilities: CEC, with an installed capacity of 484 MW, supplies over 70% of the Republic of Congo’s electricity demand, benefiting from Eni Congo’s gas resources.
- Stage One Development: The partnership will support the Zanaga Project’s initial production capacity of 12 million tons per annum of iron ore, with plans for further expansions.
Zanaga Iron Ore Company Limited (LSE:ZIOC) has announced that it has entered into a memorandum of understanding (MoU) with Centrale Électrique du Congo (CEC) SA, along with its 100% subsidiary MPD Congo, to explore potential solutions for powering the Zanaga Iron Ore Project. This agreement aims to leverage CEC’s existing energy assets to meet the project’s power demand.
Power Supply Strategy for Zanaga Project
Zanaga Iron Ore Company has partnered with CEC, a prominent power producer in the Republic of Congo, to assess how the energy needs of its Zanaga Iron Ore Project can be met using CEC’s existing infrastructure. This is a critical step for ZIOC, which aims to develop one of the largest iron ore reserves globally, located in the western part of the Republic of Congo.
CEC, which is majority-owned by the Government of the Republic of Congo and has strong backing from Eni Congo, has a well-established presence in the country’s energy sector. Its power generation assets, located in Côte Matève and Point-Noire, provide more than 70% of the nation’s electricity demand, supported by vast gas resources developed by Eni Congo.
The MoU outlines that both parties will work together to evaluate the technical, economic, and legal aspects of generating and distributing power for the Zanaga Project’s first stage, which is targeted at a production capacity of 12 million tons per annum of iron ore. The agreement paves the way for future expansions to increase production, ultimately targeting a 30 million ton per annum capacity.
Zanaga Iron Ore Project Background
The Zanaga Iron Ore Project holds one of the world’s largest iron ore reserves, with a JORC-compliant resource of 6.9 billion tonnes and 2.1 billion tonnes in reserves. The project is planned to be developed in stages, beginning with an initial capacity of 12 million tons per annum, expanding to 30 Mtpa as development progresses. This power supply agreement with CEC is a crucial step in ensuring that the project can meet its operational energy requirements while advancing toward its production goals.
