Name and Location
Zanaga iron-ore project, Republic of Congo (RoC).

Client
The project is a joint venture between GlencoreXstrata (50% plus one share) and the Zanaga Iron Ore Company (ZIOC) – 50% less one share.

Project Description
The Zanaga project is located 30 km west of Zanaga, a regional centre of the Lekoumou department of the RoC.

The project has probable ore reserves of 2.5-billion tons grading at 34% iron. A prefeasibility study (PFS) completed on the project has recommended that the optimum scope of work for the initial development of the project’s mineral resource comprise an openpit, low-strip mine operation and a concentrator.

This will produce 30-million dry tons a year of high-quality, 68%-iron-content product over a mine life of more than 30 years.

Value
The PFS has estimated capital expenditure at $7.4-billion.

Duration
Not stated.

Latest Developments
GlencoreXstrata and ZIOC have announced a revised scope for the Zanaga iron-ore project, changed budgetary arrangements and that efforts to finance possible project implementation are under way.

The project’s feasibility study is being advanced on the basis of a staged development, which substantially reduces the initial capital requirement and includes the possibility of initial production using existing infrastructure.

The project is working closely with the government to advance its development and support the RoC government’s objectives for infrastructure and mining development in the country.

The feasibility study will be completed in the second quarter of 2014 and will form the basis for an application to the RoC government for a mining exploitation licence.

Any investment decision on the project will follow the conclusion of the feasibility study.

The decision to proceed in a staged manner significantly enhances the financeability of the project.

As a result, ZIOC has agreed to contribute to the budget and work programme, which has been extended to December 2014.

Glencore and the ZIOC have also agreed to jointly explore funding options, to attract third-party debt and equity financing for potential project implementation.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
ZIOC corporate development and investor relations manager Andrew Trahar, tel +44 20 7399 1105 or
email info@zanagairon.com.
Xstrata, tel +41 41 726 6070 or email info@xstrata.com.