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The Zanaga Iron Ore Company has completed a project development strategy programme of its direct reduced iron (DRI) process plant, confirming favourable economic expectations for its Zanaga Iron Ore Project in the Republic of Congo.
In March 2025, the company initiated the programme with the aim of enhancing the project's value by improving product quality, developing better thickened tailings solutions and exploring pipeline development options.
The goal was to obtain updated technical cost estimates and economic outcomes suitable for presentation to strategic investors, lenders and financiers.
Technical assessments have enabled the refinement of process plant flowsheets, achieving premium DRI pellet feed concentrates.
The programme recorded notable achievements, allowing the project to prepare for a detailed engineering phase, with a final investment decision expected by 2027.
Critical outputs include confirming the quality potential of DRI products and finalising feasibility and costing for modular processing facilities and tailings solutions.
Additionally, an optional single pipeline system was considered as an alternative, offering potential benefits like reduced permitting complexities and a simplified expansion process.
Economic updates as of December 2025 indicate improved project financials, with stage one capital expenditure (capex) estimated at $2.17bn and a net present value of $2.54bn, representing a 30.9% increase compared to prior evaluations.
The internal rate of return for stage one is 22.5%, while combined stages show capex of $4.05bn and a net present value of $4.9bn.
The strategic move towards DRI product production has positioned the company to cater to growing demand for premium iron ores and the expanding electric arc furnace steel production sector.
Looking ahead, the work programme includes mineral resource updates, environmental assessments, and financial modelling aimed at finalising a construction decision by the end of 2027.
Zanaga Iron Ore Company CEO Martin Knauth said: “The completion of the DRI flowsheet costing and OEM [original equipment manufacturer] studies are a milestone achievement for the company and pivotal for Zanaga, in that these results confirm that an integrated DRI-producing, modular hematite concentrator design, incorporation of thickened tailings technology, dedicated pipeline and concentrate handling facilities, significantly enhance project value while maintaining robust returns and strategic optionality.
“This modular approach, combined with disciplined capital management and strong constructor engagement, positions the project as a highly competitive, future-facing iron ore development aligned with global decarbonisation trends.”
"Zanaga Iron Ore confirms positive DRI plant costing outcomes" was originally created and published by Mining Technology, a GlobalData owned brand.
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