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(Sharecast News) - Zanaga Iron Ore Company has signed a memorandum of understanding (MoU) with China Machinery Engineering Corporation (CMEC), it announced on Thursday, regarding hydroelectric power solutions for the Zanaga Iron Ore Project.
The firm said the MoU also included provisions for the funding of the power projects.
In addition, ZIOC updated the market on the progress of its feasibility study update process, in partnership with its Chinese engineering, procurement and construction (EPC) partner.
CMEC conducted preliminary inspections and engineering assessments of potential hydroelectric sites in proximity to the Zanaga Iron Ore Project, leading to the agreement of the MoU.
The key objectives outlined in the MoU include advancing engineering and related studies for the identified hydroelectric sites near the Zanaga Project and drafting arrangements for funding the development and operation of these hydroelectric projects.
The arrangements would involve collaboration between the government of the Republic of the Congo and third parties.
At the same time, ZIOC said it was making significant progress in updating its 2014 feasibility study in conjunction with its Chinese EPC partner.
The initial review and re-costing phase of the 2014 study was complete, revealing the potential for cost reductions when compared to the original projections.
Zanaga said the ongoing second phase, including market inquiry and financial modelling, was currently underway.
Due to the comprehensive nature of the update, the timeline had been extended into the first quarter of 2024.
"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, including drafting of arrangements for the funding, development and operation of the hydroelectric projects between the Republic of the Congo and third parties," said chairman Clifford Elphick.
"In addition, ZIOC's feasibility study update process is progressing well and has identified a number of potential value engineering opportunities, with the conclusion of the study now scheduled for the first quarter of 2024."
Reporting by Josh White for Sharecast.com.
