Member Info for 99icecream

FWIW Under projects:

Zanaga Iron Ore Project , Congo SA – Study and Definitive Feasibility Study for MDP

https://psei.co/services-copy-3/

FWIW

I thought the role of COIDIC was misunderstood. I understood their role to bring in the appropriate Chinese firms to take on the various roles rather than do so themselves. I also remember that COIDIC had told the Congo govt that no Chinese firm would give money (to buy land) for the SEZ if they did not have the ownership.

The Ministry set up a new website soon after, September 2021, but did not copy the old data.

I have a screen shot of the Baowu (Zoom) discussion text (10 Sep 2021). What was interesting was how the Congo officials referred to the role of Baowu:

"The China Baowu Company intends to invest outside the Pointe-Noire special economic zone in the exploitation of iron"

Part of the deal was Congo fixing the gas price: " subject to the fixing of the gas price between 0.75 and 1.25 dollars per m 3"

My guess was that the interest of Baowu in the SEZ was probably for Pellet production.

Thanks for that LT - not "Heavy Selling" then !

This is the note in the accounts for Zanaga y/e 2013:

"Zanaga, Republic of Congo (attributable interest 50%): 7 billion tonne resource; feasibility study on initial

14 million tonnes per annum development started in Q4 2013."

Its just how things are done. If you own more than 50% you have to consolidate (your share) of everything in your numbers, below 50% you can just treat as an "investment".

There is no heavy selling or buying. Little happening at all. The dealers screen prices are guaranteed for 75,000 shares (£450 worth) so mean very little. A real (or dummy) trade will reveal the real prices to be between 0.55p and 0.60p.

The price bid / ask prices are misleading. They have been trading 0.55p to 0.60p for a while - I bought some yesterday just below 0.60p - but was shown as a sell

Indeed !

I think you are missing the point - its all about economics - "whilst any car maker could produce an EV" - its not about what you could do its about what's the best way of making money, given your current situation and options available.

BHP / RIO are researching what they might do in Australia in the future (e.g. Rhodes Ridge). You seem to know the answer already. Perhaps its all a big PR exercise before they slowly abandon Australian Iron Ore .

"Goodbye and Thanks for All the Fish" ?

Put it this way. Its like the car market and the different approaches of manufactures to climate change. Some firms start EV only. Some rapidly adopt the new technology others (e.g. Toyota ?) seem to be hedging their bets as to do.

Vale are way ahead of everyone else, the can already produce a pellet with 2% impurities and will sell you off-take now. Off-takes that will be needed by those investing in DRI furnaces, they will need to know they can get pellets of the required quality. Vale are only converting a small amount of their production to "DRI grade" pellets but will expand production rapidly and will no doubt get 100% of the market for a while at least.

Simandou are in the "what China wants" camp they are guaranteed sales in China regardless of what they do they will no doubt produce pellets for China what grade impurities and what proportion will be pellets we do not know. Information on the ore is scarce.

BHP, RIO etc. are hedging their bets. BHP partner Vale in Brazil, Rio are part of Simandou, etc etc. They fund research in Australia. But they are also invested in other metals. Do they let their production continue to fall as the need for conventional ores reduces and concentrate on other metals? Do they do more outside Australia, with partners or alone? Do they open new mines in Australia aimed at DRI pellets?

The big 3 have the most difficult choices to make. Perhaps they will continue with the Toyota strategy for a while ?

Put it this way. Its like the car market and the different approaches of manufactures to climate change. Some firms start EV only. Some rapidly adopt the new technology others (e.g. Toyota ?) seem to be hedging their bets as to do.

Vale are way ahead of everyone else, the can already produce a pellet with a

Put it this way. Its like the car market and the different approaches of manufactures to climate change. Some firms start EV only. Some rapidly adopt the new technology others (e.g. Toyota ?) seem to be hedging their bets as to do.

Vale are way ahead of everyone else, the can already produce a pellet with a

Goethite is just another form of iron which converts to Hematite on heating, so that in itself is not an issue. Magnetite benefacts more easily because it is magnetic (allowing magnetic separation).

I didn't realise that there is so much magnetite in Australia.

China will be using conventional steel production for a long while yet, so little need for BHP, RIO et al. to do more at this point.

The difference I think is that I think its a question of economics. The Australians have little incentive to invest in new technology. After all there is not yet a much of a premium for DRI pellets and anyway others are well ahead in this regard.

On the other hand, you think that the Pilbara ore cannot be benefacted to DRI standards.

I guess we will see !

Well I guess we have to agree to disagree.

Most of the Pilbara Ore is no benefacted to the degree that Zanaga will require. They may separate any loose sand, but the export ore not concentrate. The ore at 58-65 % grade has always been good enough, so there was no need to do better.

Australian Iron Ore production is steadily falling due to a lack of investment. The majors cannot even justify the investment needed just to maintain production at existing levels. They will not make much progress trying to re engineer their entire process to keep up with Brazil / Simandou (& Zanaga ?).

Being late to the market and having poor grades out of the ground, is effectively an advantage for Zanaga in that it can design everything to be as Green as possible from the start.

BTW - I suspect the Zanaga pipeline (powered by gravity and electric pumps) will be far Greener than the diesel trains of Pilbara and Simandou.

You seem to be forgetting that Zanaga Ore comes out of the ground at about 34%, but can be separated from the "sand" that comes with it to produce a high grade concentrate. So the Pilbara ore may or may not be suitable for green steel depending upon what grade of concentrate can be achieved (the key thing is the remaining % of contamination after benefaction).

The other issue is that to be truly Green, you need Green energy to fuel the benefaction (which is why Zanaga is keen on electricity from hydro).

That should be the drought of 2021/22 (two years ago).

FWIW

The Moroccan Drought was a big deal. Low rainfall has been an issue in recent years, but last years drought was a once in 30 year event. The Government has been forced into a series of measures to ensure that more water is available in the future.

https://www.reuters.com/business/environment/catastrophic-moroccan-drought-boost-import-subsidy-costs-2022-02-18/

https://www.ecofinagency.com/public-management/1801-45153-morocco-unveils-urgent-water-crisis-plan-amidst-rising-climate-induced-stress

IMHO as regards the operation of Government, the key point is that the "Normal Rules do not Apply".

It seems obvious (to me at least) that the environmental decisions could not be made locally (although before the drought there would have been no problem).

At the national level I doubt they will make a decision, until they are confident on the results of the current rainy season (November to April).

I assume that OCP need Environmental permits also for their Potash mine. Given that they are reported to be digging already, they must be confident that these permits will be forthcoming?

Also, when the Environmental committee does meet it would be logical to consider both the Emmerson and OCP mines at the same time ?

There are two things outstanding, raising the Finance and signing the EPC. As previously outlined (18 Jan RNS) the signing of the EPC comes first (was end Feb) and then the Finance (within six weeks of "Finalisation" of the EPC).

Obviously, the EPC is redundant if the Finance is not raised, so they may wish to sort the Finance first. Alternatively they may make the Finance a "Condition Precedent" of the EPC (i.e. regardless of when signed, it only comes into effect when Kore prove they have the Finance).

IMHO - this does not signal weeks of negotiation.

More local news (this time UK). Phosphate pollution in some rivers is a major problem. Struvite (slow release form phosphate, might be a solution ?

https://www.bbc.co.uk/news/uk-wales-63285821