PERTH (miningweekly.com) – Junior Kogi Iron has been granted two mining licences for its Agbaja iron-ore and steel project, in Nigeria.
The two granted mining licences cover 90.7 km2 and contain 586-million tonnes of indicated and inferred mineral resources.
Previously completed prefeasibility studies have estimated that a five-million-tonne-a-year operation could be developed at Agbaja, with capital expenditure estimated at around $497-million. The project is expected to have an average operating cost of some $42.98/t of concentrate, and would likely return earnings before interest, taxes, depreciation and amortisation of $136-million a year.
Kogi is currently discussing potential joint venture opportunities with a number of parties that have expressed an interest in participating in the Agbaja project, with the company saying on Friday that these discussions were at an early stage and remained incomplete.
A joint venture arrangement is only one of a number of funding mechanisms being considered for the project.
Meanwhile, Kogi will undertake a 50 t bulk sample operation for metallurgical testing over the coming weeks. The testing, to be conducted by Mintek, in Johannesburg, will form an integral part of the definitive feasibility study for Agbaja.