22 February 2013

Mozambique: Baobab Increases Known Iron Reserves

Maputo — The British company Baobab Resources on Thursday announced that it has increased by sixty million tonnes the estimated iron ore reserves at its Tenge/Ruoni deposit in the western Mozambican province of Tete.

As a result of this increase in estimated resources, the company believes that it now has access to 725 million tonnes of iron ore.

The Tete pig iron, vanadium and titanium project is 85 per cent owned by Baobab, with a 15 per cent share held by the International Finance Corporation (IFC), the member of the World Bank Group that focuses on the private sector in developing countries.

Baobab is planning to use local coal to smelt the iron ore into pig iron and is looking at a range of production scenarios of up to 4 million tonnes per annum (the world’s single largest pig iron operation produces 2.5 million tonnes per annum).

According to Baobab’s managing director, Ben James, “the Company is very pleased to announce the expansion of the global resource inventory to 725 million tonnes.

The Tenge/Ruoni prospect’s compact 2.5 square kilometre footprint now hosts over half a billion tonnes of iron ore grading 36.4 per cent iron, sufficient to underpin a large scale, vertically integrated pig iron operation over a significant life of mine”.

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