ASX-listed Kogi Iron says it has continued with reduced activities in Nigeria throughout June and July, owing to limited interstate and international travel.
Trial iron-ore mining at the company’s Agbaja project is also only progressing slowly owing to heavy rains and travel restrictions.
The company is progressing a feasibility study on the Agbaja cast steel project, including work on a new geophysical survey after a water borehole collapsed at the Irimi-Okpaka site, resulting in reduced water flows.
Kogi’s new geophysical survey has been interpreted to define a subsurface aquifer and a new replacement borehole has been drilled at 100 m.
Other ongoing site works include pump drawdown tests and water quality tests, before the company reconnects and fills up header tanks.
Kogi says these additional works were done by the local contractor on site without additional cost to the company. This while the local community appreciated the company’s commitment to providing clean drinking water.
The trial mining acidity on site comprises a small-scale pit of about 50 m by 30 m by 5 m deep, using a local Lojoka-based company.
The trial mining and subsequent studies are providing key inputs for the feasibility study.
Kogi plans on evaluating the environmental, social and governance impacts, benefits and local business opportunities in the near future.
The company further says the Nigerian government is keen to showcase the Agbaja steel project as an example of a pioneer downstream industry to replace costly steel imports and stimulate economic growth.
CEO David Turvey says the company’s focus on critical path ‘value drivers’ of the feasibility study will fast-track progress on the Agbaja steel project. These drivers are technical viability (phosphorus removal through conventional refining), cost of gas and power supply, and market entry policies.
The company is continuing to engage with potential investors and financial institutions to fund development of the project.