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BROKER HAILS POTENTIALLY TRANSFORMATIONAL ZANAGA BREAKTHROUGH

Liberum believes Zanaga Iron Ore Co Ltd (AIM:ZIOC) metallurgical breakthrough could transform the economics of its flagship project in the Republic of Congo.

Recent test work has confirmed that Zanaga can produce direct reduction iron (DRI) grade pellet feed, a key input for the fast-growing electric arc furnace (EAF) steel sector.

DRI-grade feedstock must meet tight quality specifications, and Panmure highlights that recent samples from Zanaga exceeded those benchmarks, with iron content above 68.5% and low levels of impurities.

Crucially, these results imply the project can target premium pricing without significantly increasing costs. As Panmure put it, "there should be no expectation of any significant change to capital and operating costs as a result of the changes."

Zanaga is now updating its net present value (NPV) to reflect these higher-value outputs. The bank estimates the DRI-grade production could add up to $6 billion to the project’s NPV.

The company is also advancing three other initiatives: a feasibility study for an on-site pellet plant, a shift to a single 30 million tonnes per annum (mtpa) pipeline, and a move from wet to dry-stack tailings storage.

Each offers the potential to improve project economics and reduce risk. The pellet plant alone could lift NPV by more than $1 billion, while a single-pipeline strategy is expected to cut capex and operational complexity.

These upgrades mark a step change for Zanaga, which had previously based its valuation on a more conventional blast furnace feedstock.

Panmure concludes that recent developments not only open up a new customer base in the low-carbon steel market but also give the project greater commercial and environmental credibility.

https://www.proactiveinvestors.co.uk/companies/news/1073694/broker-hails-potentially-transformational-zanaga-breakthrough-1073694.html

It would be most convenient for a lot of people and reasons were the SP to be at 8p when major news released.

Mark Cutifani’s exit as Vale Base Metals (VBM) chairperson in July 2025 to pursue “new professional projects” has sparked speculation that he may target the chairmanship of Zanaga Iron Ore Company (ZIOC), potentially succeeding Clifford Elphick to drive its 6.9 billion tonne Zanaga project in the Republic of Congo. A Financial Times comment suggests his ambition to chair a major resources company lies beyond VBM, and ZIOC’s scale fits that vision. Below, I blend evidence with speculation on how Cutifani could replace Elphick and deliver Zanaga’s development.

Factual Foundation

Cutifani’s Role: Cutifani is leaving VBM for ventures like Odin Financial, a boutique investment bank. His ZIOC investment via Greymont Bay, with Tony Trahar, secured $21.5 million in March 2025 to buy out Glencore’s 43% stake, giving Greymont Bay up to 28.8% ownership. He called Zanaga “one of the most compelling undeveloped iron-ore opportunities” for its 68.5% iron grade and low-cost potential, echoing his Anglo American Minas Rio success.

ZIOC’s Context: ZIOC aims for 30Mtpa of high-grade pellet feed for low-carbon EAF steel. The 2025 fundraising, backed by Cutifani, Trahar, and Mick Davis (Vision Blue), funds the Glencore buyout and studies. ZIOC seeks a strategic partner, with 20% marketing rights tied to Gulf Iron and Steel. Its $5.7 billion NPV attracts investors like Vale or Manara.

Elphick’s Role: Elphick, ZIOC’s chairman since 2011, led the 2011 Xstrata deal and 2025 Glencor buyout. Holding a 9.62% stake, he called the latter a “transformational milestone.” No sources suggest he’ll step down, but his Gem Diamonds CEO role and long Zanaga tenure (since 2004) could allow a transition.

Cutifani’s Expertise: He turned around Anglo American (2013–2022), cutting fatalities by 93% and boosting output by 12%, and developed Minas Rio. His Vale nickel and AngloGold Ashanti roles, plus Manara and Middle Eastern connections, position him to secure ZIOC partners.

Speculative Scenarios

Visionary Leader:

Rationale: Cutifani’s ambition fits ZIOC, as Zanaga could rival top iron ore producers. His VBM exit avoids conflicts if Vale or Manara eye ZIOC. He could steer Zanaga’s $2 billion construction, targeting EAF markets (95.5% adoption in the Middle East).

Speculation: Elphick, possibly 65–70, may retire post-Glencore buyout. Cutifani, 67, could see Zanaga as a “career capstone,” outshining Simandou with lower capex. His 2025 London Indaba keynote suggests leadership intent.

Speculation: Cutifani joins the board, transitioning to chair if Elphick steps back post-2026 deals, securing partners like Manara.

Likelihood: High.

Conclusion

Cutifani replacing Elphick is plausible, given his investment, expertise, and ambition. His VBM exit avoids conflicts, and his network could secure partners, positioning Zanaga as a global leader. Elphick’s tenure is a hurdle, but a board role with potential chairmanship i

Materials Processing Institute on Teeside.

ZIOC worked with them previously (2018), as do Binding Solutions Ltd.

www.mpiuk.com/research-industrial-decarbonisation.htm

The March presentation promised us 'Q2 '25: EPC MoU'. In fact schematically (p.20) this was slated to come before today's DRI test results. There's plenty of evidence that PSEI are both our EPC *and* carried out the DR testwork. If so then the next RNS could well confirm. No reason for it not to follow as early as tomorrow.

We shall see, of course.

GROK cont.

ZIOC’s recent strategic moves further bolster its prospects. The March 2025 fundraise, exit of Glencore, and entry of experienced investors from Anglo American, Rio Tinto, and Vale (via Greymont Bay) provide financial flexibility and industry expertise. Cost-saving initiatives, such as a single 30 Mtpa slurry pipeline (saving ~$700 million) and dry tailings technology (potentially saving $2 billion over the mine’s life), enhance project economics. Additionally, ZIOC’s exploration of a pellet plant in the Republic of Congo or the Middle East (e.g., UAE, Saudi Arabia) could add up to $1 billion to the NPV by producing a refined, high-value product, supported by regional energy resources and offtake interest.

However, risks remain. The project’s $2 billion stage-one capital cost and remote location (300 km from Pointe-Noire) pose financing and logistical challenges. Iron ore price volatility, driven by global demand (e.g., China’s steel sector) and supply constraints, could impact NPV projections. Execution risks, including regulatory hurdles and infrastructure development, may delay first production, targeted for 2026 or later. Despite these challenges, ZIOC’s strategic alignment with decarbonization trends and its high-grade resource mitigate risks, positioning it as a compelling opportunity.

In conclusion, the positive test results confirm Zanaga’s potential to supply premium DRI-grade iron ore, enhancing ZIOC’s prospects in a decarbonizing steel market. With ongoing NPV evaluations, cost optimizations, and strategic partnerships, ZIOC is advancing a world-class project. Investors should monitor upcoming announcements for further clarity on valuation and project timelines, available via ZIOC’s website (https://www.zanagairon.com/).

GROK

THIS MILESTONE SIGNIFICANTLY ENHANCES ZIOC’S PROSPECTS....

On June 25, 2025, Zanaga Iron Ore Company Limited (ZIOC) announced positive metallurgical test results for its Zanaga Iron Ore Project in the Republic of Congo, confirming the production of high-quality Direct Reduction Iron (DRI) grade pellet feed concentrate. This milestone significantly enhances ZIOC’s prospects, aligning the project with the growing demand for low-carbon steel production via Electric Arc Furnaces (EAF). Below is a 500-word assessment of ZIOC and the Zanaga Project’s prospects based on this announcement and broader context.

The test results demonstrate that both hematite (68.5% Fe, 1.05% SiO₂, 0.47% Al₂O3, 0.034% P) and magnetite (69.1% Fe, 1.96% SiO₂, 0.40% Al₂O3, 0.028% P) concentrates meet stringent DRI quality standards, critical for EAF steelmaking. These results reflect a marked improvement over the 2014 Feasibility Study, with reduced impurities (gangue minerals), enhancing the product’s marketability. High iron content and low silica, alumina, and phosphorus levels position Zanaga’s output as a premium product, commanding price premiums in a market increasingly driven by decarbonization. The global shift toward EAF-based steel production, fueled by environmental regulations and sustainability goals, creates a supply-demand deficit for DRI-grade iron ore, which Zanaga is well-poised to address.

The strategic importance of these results cannot be overstated. The Zanaga Project, with a 6.9 billion-tonne resource and a 30-year mine life, is one of the world’s largest undeveloped iron ore deposits. The confirmation of DRI-grade product quality strengthens its appeal to steelmakers seeking low-carbon inputs, potentially unlocking significant value. ZIOC is evaluating the Net Present Value (NPV) upside, with earlier estimates (March 2025) suggesting a potential $4–6 billion increase, depending on DRI market pricing. This could transform ZIOC’s valuation, currently modest given its AIM listing (ZIOC), and attract investor interest.

ZIOC’s recent strategic moves further bolster its prospects. The March 2025 fundraise, exit of Glencore, and entry of experienced investors from Anglo American, Rio Tinto, and Vale (via Greymont Bay) provide financial flexibility and industry expertise. Cost-saving initiatives, such as a single 30 Mtpa slurry pipeline (saving ~$700 million) and dry tailings technology (potentially saving $2 billion over the mine’s life), enhance project economics. Additionally, ZIOC’s exploration of a pellet plant in the Republic of Congo or the Middle East (e.g., UAE, Saudi Arabia) could add up to $1 billion to the NPV by producing a refined, high-value product, supported by regional energy resources and offtake interest.

Huge from the company

Test work showing that all layers and stages of Zanaga are now deep into DR territory, and with very low impurities

Massive win and all but nails on the $6bn upside revaluation of the NPV.

The global steel industry will be crawling over each other to secure off-take, no doubt lead by the Gulf States with their green steel ambitions.

25 June 2025

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

POSITIVE METALLURGICAL TEST RESULTS CONFIRM DRI PRODUCT QUALITY

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to announce positive outcomes from its recent metallurgical test work programme, confirming the ability to produce Direct Reduction Iron ("DRI") grade pellet feed concentrate product from the Zanaga Iron Ore Project (the "Zanaga Project" or the "Project"), capable of supplying the rapidly growing low carbon Electric Arc Furnace ("EAF") steel sector.

Key Highlights

· Product test work results from both hematite and magnetite orebody lithologies met stringent DRI quality requirements critical for the rapidly growing EAF steel sector:

o Hematite concentrate grade results: 68.5 %Fe, 1.05 %SiO₂, 0.47 %Al₂O3, 0.034 %P

o Magnetite concentrate grade results: 69.1 %Fe, 1.96 %SiO₂, 0.40 %Al₂O3, 0.028 %P

· Test work results represent a significant improvement in planned product quality versus the 2014 Feasibility Study, particularly in the reduction of impurities (gangue minerals)

· DRI product quality confirmation further reinforces the strategic nature of the Zanaga Project

· The Company is in process of completing an evaluation of the Net Present Value ("NPV") upside of its planned DRI product - the results of this will be announced shortly

https://www.investegate.co.uk/announcement/rns/zanaga-iron-ore-co-ltd-di---zioc/positive-test-results-confirm-dri-product-quality-/8946211

Since when there hasn't been any ZIOC-related research posted to any board, apart from yours truly.

SO, SHOULD ZIOC SUCCEED IN PRODUCING DR-GRADE IRON ORE FINES FROM THE CURRENT TESTWORK *AND* NEGOTIATE USE OF BSL TECH FOR 'COLD PELLETS' THEN THEY WOULD HAVE A SUPER PREMIUM PRODUCT TO DELIVER TO THE MIDDLE EAST?

CHATGPT SAID:

YES — ABSOLUTELY. IF ZIOC ACCOMPLISHES THOSE TWO MILESTONES:

✅ Successful testwork confirming consistent DR-grade iron ore fines (≥67% Fe, low silica/alumina)

✅ Agreement with BSL to license and deploy cold agglomeration technology for pellet production at or near Pointe Noire

Then ZIOC would be positioned to deliver a “super premium” green iron product — especially attractive to Middle Eastern (and European) green steelmakers.

🔎 Why this would be a “super premium” product for the Middle East

🎯 Perfect input for DRI-based green steel

Middle East steelmakers — particularly in Saudi Arabia, UAE, and Oman — are:

Scaling DRI-EAF steelmaking capacity

Pivoting to hydrogen (blue then green) as a reductant

Facing tightening emissions and carbon border constraints (e.g., from EU CBAM)

DR-grade cold pellets:

Are exactly the feedstock needed for these DRI systems

Offer lower carbon intensity than traditional fired pellets or lump ore

Avoid the need for steelmakers to install sinter plants (high capex, high emissions)

🌍 ZIOC-BSL pellets would offer a unique combination:

Attribute

✅ High Fe content (67–70%) Efficient DRI yield; minimizes gangue

✅ Low impurities Critical for DRI furnace operation (silica < 2%, alumina < 1%)

✅ Ultra-low carbon agglomeration (via BSL) Low Scope 3 emissions = helps buyers meet ESG/CBAM targets

✅ Logistics advantage (Pointe Noire) Deepwater port = direct export to ME & EU

✅ Scalability with modular BSL plants Potential for flexible, regional production based on demand

ZIOC USING BSL TECH TO PRODUCTION DR-GRADE CAPS AT POINTE NOIRE WITH A VERY LOW CARBON FOOTPRINT WOULD BE AN IDEAL INPUT?

CHATGPT SAID:

Yes — Zanaga Iron Ore Company (ZIOC) using Binding Solutions Limited (BSL) technology to produce DR-grade Cold Agglomerated Pellets (CAPs) at Pointe Noire would be highly aligned with the low-carbon steel transition. Here's why that could be a big deal:

🧩 Why ZIOC + BSL at Pointe Noire is a Strategic Fit for Low-Carbon Steel

1. ✅ DR-grade feedstock is the future

Direct Reduction Iron (DRI) processes — especially hydrogen-based — require ultra-high-grade iron ore (>67% Fe, low silica/alumina).

ZIOC’s resource (Zanaga project) is known to be very high quality, with potential to produce 68–70% Fe concentrate — ideal for DRI/EAF routes.

Most of the world’s DR-grade ore comes from a handful of suppliers (e.g., Vale, LKAB). ZIOC would diversify and strengthen global supply.

2. 🌿 BSL’s Cold Agglomeration = low-carbon processing

BSL’s patented binder tech allows pelletizing without high-temperature sintering, which is normally highly CO₂ intensive (traditionally ~200–300 kg CO₂ per tonne just for pelletization).

Their process can reduce carbon emissions by up to 95% compared to fired pellets.

Also avoids emissions related to the use of fossil fuels in firing kilns (common in traditional pellets).

✅ This tech effectively decarbonizes upstream steel production — complementing efforts to decarbonize downstream (like hydrogen-based DRI or EAF).

3. ⚓ Pointe Noire location = export advantage

A deep-water port near Pointe Noire gives ZIOC direct maritime access to:

Europe (where CBAM creates demand for low-carbon materials)

Middle East (green steel hub buildout)

Asia (huge scrap deficit, growing DRI interest)

Also reduces transport emissions vs landlocked competitors.

4. 📉 Low-carbon footprint input = premium potential

Steelmakers are increasingly:

Willing to pay a premium for "green iron" feedstock (e.g., Vale’s briquettes or LKAB’s DR pellets)

Seeking ways to reduce Scope 3 emissions (from raw materials)

ZIOC-BSL CAPs could become a certifiable green input, helping steelmakers comply with EU CBAM, SBTi targets, and internal ESG mandates.

🟢 Bottom Line

ZIOC using BSL to produce DR-grade CAPs at Pointe Noire is not just “ideal” — it’s strategically positioned to:

Fill a growing supply gap in clean, high-grade iron

Fit into both European and Middle Eastern green steel ecosystems

Offer a certified, ultra-low-carbon feedstock at a time when the world is searching for precisely that

Would you like a scenario plan showing how ZIOC could build into a green iron supply chain for EU/ME steel producers by 2027–2030?

Following on from the 18th March 'Project Development Strategy Update' ZIOC reveal that, '....the Company has received interest from various groups in Saudi Arabia and the United Arab Emirates (UAE) and is exploring these opportunities.' an exchange with ChatGPT:

THE ME, AS THE PRIME EXAMPLE, COULD COMMIT TO GREEN STEEL, VIA NATURAL GAS AS A STEPPING STONE TO GREEN HYDROGEN, AS A LOW COST AND PRACTICAL AND PLAUSIBLE TRANSITION?

CHATGPT SAID:

Exactly — you're hitting on a strategically important and realistic pathway. Here's how and why the Middle East (ME) is uniquely positioned to lead in green steel via a natural gas–to–green hydrogen transition:

🛤️ Middle East: A Practical Green Steel Transition Pathway

✅ 1. Leverage existing strengths

Advantage Implication for Green Steel

🛢️ Abundant, cheap natural gas Enables immediate shift to natural gas–based DRI (Direct Reduced Iron), already much lower carbon than blast furnaces

☀️ World-class solar/wind resources Ultra-cheap renewables = low-cost green hydrogen production within a few years

🏭 Existing steel infrastructure (e.g., in UAE, Saudi Arabia, Oman) Can retrofit or build new DRI + EAF (Electric Arc Furnace) plants instead of legacy BF-BOF setups

⚓ Proximity to major markets (Europe, Asia) Shorter shipping routes and alignment with EU CBAM incentives

🧱 Sovereign capital & industrial policy capacity Can subsidize or lead green infrastructure build-out in ways others can't easily match

🔁 2. Transition model: “Blue-Green” steel pathway

Today → Blue Hydrogen (natural gas + CCS)

Mid-term → Green Hydrogen (solar + electrolysis)

Long-term → Exporter of green steel or green iron

This mirrors how Saudi Arabia, UAE, and Oman are already planning energy transitions:

Aramco + SABIC are piloting blue hydrogen and DRI production.

OQ (Oman) is advancing massive green ammonia and hydrogen export plans.

UAE is building out green industrial zones (e.g., TA’ZIZ, KIZAD) with renewables and port access.

💸 3. Cost advantage & competitiveness

Hydrogen from solar + wind in the Gulf could reach $1.50/kg or lower this decade — cheaper than Europe or Japan.

DRI-EAF process powered by local renewables or blue hydrogen is already cleaner and cheaper than Europe’s decarbonization path.

This means ME green steel could undercut “green premiums” from EU producers and meet carbon compliance (CBAM), offering low-carbon steel at a globally competitive price.

🟢 Bottom Line

Yes — the Middle East is not just a plausible participant in green steel, it's a potential global leader. A gas-to-green hydrogen pathway allows for an economically competitive, technologically realistic, and globally strategic role in the green steel transition.

FALLING AUSTRALIAN IRON ORE QUALITY SPARKS GRADE BENCHMARK TWEAK

11, 2025 at 3:53 AM GMT+1

The iron ore industry’s key pricing benchmark for seaborne cargoes will be lowered as the quality of supplies from biggest exporter Australia worsens.

Platts, part of S&P Global Commodity Insights, will in January change its IODEX iron ore benchmark to 61% iron content from the current 62%, according to a notice to members on Tuesday. It also plans to update its 62.5% China iron ore spot lump premium benchmark to 62%.

The proposed changes are in response to falling quality of Australian iron ore as mines in the nation’s Pilbara mining hub age. Rio Tinto Group is facing this issue at some of its existing projects, prompting significant investment in the region to maintain revenues from the steelmaking material.

“It marks a shift in the market, where what was once considered a sub-benchmark grade is now a core part of global trade flows,” David Cachot, an iron ore research director at Wood Mackenzie Ltd., said in emailed comments. “It’s a move designed to better reflect the realities of today’s market.”

https://www.bloomberg.com/news/articles/2025-06-11/falling-australian-iron-ore-quality-sparks-grade-benchmark-tweak

"The iron ore concentrator, the first of its kind in West Africa, is designed to upgrade low-grade hematite ore to high-grade magnetite concentrate with more than 66% iron content."

> The above makes no sense

ChatGPT

You're absolutely right — the statement:

"The iron ore concentrator, the first of its kind in West Africa, is designed to upgrade low-grade hematite ore to high-grade magnetite concentrate with more than 66% iron content."

is technically flawed and misleading for several reasons. Let’s unpack it:

🔍 1. Hematite vs Magnetite — They're Different Minerals

Hematite (Fe₂O₃) and magnetite (Fe₃O₄) are distinct iron oxides with different properties.

You cannot “upgrade” hematite to magnetite via beneficiation. Beneficiation upgrades iron content — it does not change the mineralogy.

Accurate:

You can beneficiate low-grade hematite ore to produce high-grade hematite concentrate.

Inaccurate:

Saying you turn hematite into magnetite concentrate implies mineral conversion, which doesn’t occur in typical ore processing.

✅ Corrected Statement

A more accurate description would be:

“The iron ore concentrator is designed to upgrade low-grade hematite ore to high-grade hematite concentrate with more than 66% iron content.”

This accurately reflects the beneficiation process without implying a transformation from hematite to magnetite.

🧭 Conclusion

The misstatement likely stems from a misunderstanding of mineral processing terminology. It's important for technical communications, especially in mining and metallurgy, to use precise language to avoid confusion. If you have further questions about iron ore beneficiation or related topics, feel free to ask!

Chinese steel mills are adjusting to the reality of declining Pilbara grades by 'blending up' their furnace charge with higher (magnetite) grade....and that means Zanaga.

The outcome of all this will see the market bifurcate:

> Sub par iron ore grades (>60%) will be increasingly discounted whilst higher grades (>62%) will command higher premiums. Those that reach DR-grade will enjoy a super-premium. Like Zanaga.

THE IRON ORE AND STEEL MARKET MOVES WITH THE TIMES AS PILBARA MINES DEGRADE

What does this mean for high grade?

Does this mean margin squeeze will squeeze high grade iron ore just as majors complete investments into new sources – Fortescue at its Iron Bridge magnetite project in the Pilbara and Rio/China at the Simandou project in Guinea, West Africa.

Maybe not.

As Lim stated, China’s steelmakers have become adept at blending ores.

“The increase in contaminant levels as well as low Fe will have implications for other ores around the world – it will support high grade iron ore prices, it’s just at this moment China may not be seeking as much high grade iron ore,” he said.

“So this change is actually good for high grade producers around the world.”

https://stockhead.com.au/resources/the-iron-ore-and-steel-market-moves-with-the-times-as-pilbara-mines-degrade/

Before anyone gets too excited (whoops, too late) the 'travel ban' is nothing to do with us. The US is attempting to stop illegal immigration from certain countries because of weak visa controls.

It has absolutely no impact on bilateral travel arrangements between RoC and other countries. None.

WHAT IS A TRAVEL BAN?

A travel ban restricts or prohibits citizens of specific countries from entering the United States. These restrictions can range from complete visa suspensions to specific limitations on certain visa categories.

Trump’s day one executive order required the state department to identify countries “for which vetting and screening information is so deficient as to warrant a partial or full suspension on the admission of nationals from those countries”.

https://www.theguardian.com/us-news/2025/jun/04/what-is-trump-travel-ban-countries

Oh dear

There's a compelling reason for this:

Q2 '25

Pellet Plant Feasibility Study

p.20 https://www.zanagairon.com/wp-content/uploads/2025/03/Zanaga-Investor-Day-Presentation-March-2025.pdf

DR grade achieved.

BSL MoU to produce cold pellets (CAPs)

Offtake deal with Middle East green steel interests (think SA's Manara Minerals and UAE's ADQ-Orion) for DR-grade CAPs to feed their nascent green steel industries.

Development finance from ME SWFs, think PIF and ADQ.