Zanaga Iron Ore Company Limited has officially inked a Memorandum of Understanding (MoU) with China Machinery Engineering Corporation (CMEC), marking a strategic partnership to explore hydroelectric power options for the Zanaga Iron Ore Project in the Republic of Conga, along with the crucial funding required for the execution of these power projects.

Following CMEC's thorough preliminary inspections and engineering assessments of potential hydroelectric sites in close proximity to the Zanaga Project, the MoU outlines key objectives:

  • Advancing engineering and conducting related studies for the identified hydroelectric sites near the Zanaga Project.
  • Drafting arrangements for the funding of the development and operation of the identified hydroelectric project(s) involving the government of the Republic of Congo and third parties.

In addition to the MoU announcement, Zanaga Iron Ore Company Limited provided an update to its shareholders on the progress of the Feasibility Study (FS) update process in collaboration with its Chinese Engineering, Procurement, and Construction (EPC) partner.

Key highlights of the FS update progress include:

  • Completion of the initial review and re-costing phase of the 2014 Feasibility Study (2014 FS), revealing potential cost reductions compared to the original study.
  • Ongoing market enquiry and financial modeling in phase 2, which will extend into Q1 2024 due to the comprehensive nature of the update.

Clifford Elphick, Chairman of ZIOC, expressed his satisfaction with the recent developments, stating, "I am pleased to report that ZIOC has signed an MoU with China Machinery Engineering Corporation to advance engineering and related studies for a number of hydroelectric power sites identified near the Zanaga Project. This includes drafting arrangements for the funding, development, and operation of the hydroelectric project(s) between the Republic of Congo and third parties."