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For more clarity the March 2019 Presentation is helpful.
Essentially Zanaga is haematite overlying magnetite.
The haematite is 66%, the magnetite 68.5%, the blended product at 67.5%.
The final product grade would vary between the two depending on the sequence at which Zanaga is developed.
Pages 19, 27 and 30 are most relevant:
https://www.zanagairon.com/wp-content/uploads/2019/06/ZIOC-IP-28.03.19.pdf
Thank you 99icecream. That is as I understand it too, though I abbreviate a little for ease of posting. That would be a little long winded each time.
One whole year ago now, at FMF23, SABIC (Saudi Basic Industries) laid out the ingredients for 'green steel', essentially high grade iron ore, pellets and hydrogen from renewable energy. Only grades like Zanaga's (66%-68.5%, av. blend 67.5%) and higher will do:
'..The industrial giant showcased its latest solutions in the mineral and metals industry at the forum hosted by the Saudi Ministry of Industry and Mineral Resources in Riyadh from January 11 to 12.
SABIC also conducted a workshop on the second day of the forum, which touched on the topics related to iron journey from mining, beneficiation, and pelletizing to steelmaking.
The workshop also talked about the steel industry’s current status with regards to carbon neutrality and how it’s moving forward to minimize the emissions in the upcoming decades, the different types of hydrogen and what constitutes a “green steel” product.
https://www.sabic.com/en/news/38467-sabic-participates-in-future-minerals-forum-as-a-founding-partner-for-2nd-consecutive-year
Also at FMF23 Manara Minerals was formed, a JV between PIF and Ma'aden. MM are specifically tasked with securing the requisite iron ore to feed the Saudi green steel roll out, itself a central pillar of Vison2030.
During 2023 the PIF then bought SABIC's steel operation - Hadeed - for $3.3bn:
DUBAI, Sept 3 (Reuters) - Saudi Basic Industries Corp (2010.SE) said on Sunday it had agreed to sell subsidiary Saudi Iron and Steel Company (Hadeed) to the Public Investment Fund (PIF) for an enterprise value of 12.5 billion riyals ($3.33 billion).
The transaction is expected to close before the end of the first quarter of 2024, and proceeds from the sale will be used to support SABIC's growth in the chemicals industry, according to a company statement to the stock exchange.
https://www.reuters.com/markets/deals/saudis-sabic-sell-steel-unit-hadeed-pif-33-bln-statement-2023-09-03/
> So SABIC laid out the formula and key ingredients for green steel, and hence Hadeed,
>> PIF the bought Hadeed,
>>> PIF now has double demand for high grade iron ore for green steel; first via Manara Minerals and, second, via their ownership of Hadeed.
> A year has now passed, and the Saudis have not secured a single ton of captive high grade, and the clock is ticking on Vision2030.....
Saudi Mining Minister, Bandar al-Khorayef, has opened the FMF in Riyadh. Ministerial roundtable today, and then 2 days of conference/forum/exhibitions.
https://twitter.com/FutureMineral/status/1744625433012736039
Within the last hour, Arab News has highlighted the precise formula for green steel as being the focus for the FMF in Riyadh this week:
RIYADH: The Saudi capital is set to host ministers from over 45 countries on Jan. 9 for a roundtable meeting at the Future Minerals Forum 2024 to discuss the future of the global mining sector.
The world’s premier gathering on minerals seeks to address the challenges in the mining and metals sector, especially the heightened demand for energy transition minerals.
This high-level meeting, preceding the third edition of the forum, will see participation from 80 countries, featuring over 45 ministers and representatives from 20 international organizations, 30 nongovernmental organizations, and 13 business associations.
As nations rush to ensure stable supply chains, collaborative efforts will take center stage, with a key focus on supporting technology development.
THE FOCUS WILL BE ON PROMOTING A GREEN MINERAL SUPPLY CHAIN, LEVERAGING RELIABLE HYDROGEN AND RENEWABLE ENERGY SOURCES TO POWER THIS TRANSFORMATIVE JOURNEY.
The roundtable underscores the significant contribution of the region spanning from Africa to West and Central Asia, highlighting Saudi Arabia’s leadership role.
https://www.arabnews.com/node/2438061/business-economy
>'Green Steel' requires high grade iron ore (Zanaga grade) to be reduced by hydrogen produced using renewable energy.
>> This is the DRI-EAF route of the 3 green steel mega hubs being built out across the Gulf States.
>>> Only Zanaga's grades will work, and the Saudis have yet to secure a single ton of captive supply.
Saudi Arabia's PPIF - they have the blockbuster size, the intent, and a focus on green steel.....plus they are teamed up with China to, 'secure supplies such as mining resources'
Opinion The Top Line
SAUDI ARABIA’S FUND HAS A GARGANTUAN APPETITE FOR DEALS
Anne-Sylvaine Chassany JANUARY 5 2024
“They (PIF) are everywhere, they have become more professionalised,” said Ludovic Phalippou, professor at Oxford’s Saïd Business School, noting “the sheer size” of its ambitions.
Other funds in the region have been active: ADIA, Mubadala and ADQ in Abu Dhabi and Qatar Investment Authority made it to the top 10 by spending last year. But PIF’s mandate sets the fund apart.
Its risk appetite is higher. When its peers generally invest through third party fund managers, “PIF prefers to invest directly — mostly in strategically important areas of the Saudi economy — from football clubs, tourism and gaming . . . to construction and heavy industry,” said Diego López, head of Global SWF.
It is also in a hurry: the fund has a goal of increasing its assets under management to more than $1tn by the end of 2025 and $2tn by 2030, from about $700bn.
This model could result in some big losses. But its primary measure of success is not returns — it said it delivered 8 per cent per year by the end of 2022 — but size and domestic impact.
A “hybrid between a development fund and a private capital fund” is how a person close to the fund describes it.
While the PIF aims to hold three-quarters of its assets in the kingdom — these include Prince Mohammed’s five “gigaprojects” such as Neom, a development 30 times the size of New York in the Tabuk desert, plenty of cash remains for overseas deals. China will feature more, according to the person, to secure supplies such as solar panels or mining resources.
https://www.ft.com/content/1e79329f-5cef-4d7d-880b-a2dcbe6c55c3
PIF Starts 2024 with Impact, After Year of Massive Investments
4th January, 2024
TO SUPPORT THE DEVELOPMENT OF NON-OIL INDUSTRIES, PIF IS ADVANCING DOMESTIC MINING AND STEELMAKING.
In 2023, PIF signed a deal with Aramco and China’s Baosteel to establish an integrated steel plate manufacturing complex in Saudi Arabia. This will be followed in 2024 with the completion of PIF’s acquisition of the Saudi Iron and Steel Company (Hadeed) from chemicals producer Sabic for US$3.3 billion. PIF and South Korea’s POSCO are also driving forward green hydrogen production, which could create a low-carbon steel industry.
https://globalswf.com/news/pif-starts-2024-with-impact-after-year-of-massive-investments
Reading again, this morning's FT piece on Simandou is a sensational endorsement of high grade iron ore for green steel, and hence Zanaga as well. Thinking a little further, the FT would have taken some days preparing the article. Perhaps Zanaga's development prospects reached deeper pocketed investors, and hence last week's volume?
Whatever the case, ZIOC's management will be very pleased.
Roll on next weeK
Rio Tinto's Simandou CEO in today's FT describes Rio's 65%Fe at Simandou as 'the caviar of iron ore'.
What would that make Zanaga's 68.5%Fe from stage 2 at Zanaga?
Very interesting timing as well. It's almost as if the FT and Rio have got wind of other iron ore news and want to get Simandou to the fore...
WORLD’S BIGGEST MINING PROJECT TO START AFTER 27 YEARS OF SETBACKS AND SCANDALS
'...Rio Tinto and the Chinalco consortium must also fund an additional 70km rail spur to connect its mine with the main line. Rio Tinto’s share of the total cost is forecast to be $6.2bn, more than the company’s entire annual capital expenditure in some of the past five years.
For Baatar, the complex partnership structure at Simandou provides a template for a “new era in co-development” that will be necessary to source the vast volumes of metal required to build the green economy of the future.
One hundred and fifty years of industrial mining means that the simple, easily accessible ore bodies have almost all been developed and complex projects that require ingenuity and large amounts of capital are what is left.'
AND THEN 'CAVIAR OF IRON ORE':
'..The difference between 2016 and today is that Simandou’s high-grade ore is now even more attractive, given the need to decarbonise steelmaking, according to Baatar.
“The fundamental shift in the last number of years has been that the world is far more in agreement on climate change,” he said.
The steelmaking process, which usually uses coke to produce iron from ore in a blast furnace and then turn it into steel, is highly carbon-intensive, producing about 8 per cent of global carbon emissions.
To cut emissions, the industry is exploring alternative approaches, such as direct reduced iron technology in which the ore is treated using hydrogen and carbon monoxide, rather than coke. Such processes require high-grade iron ore, which is increasingly hard to find in large quantities.
THE ORE RIO TINTO PLANS TO EXTRACT FROM SIMANDOU HAS AN AVERAGE IRON CONTENT OF GREATER THAN 65 PER CENT, AMONG THE HIGHEST IN THE WORLD. BAATAR CALLS IT THE “CAVIAR OF IRON ORE”.
Simandou has the potential to help decarbonise the Chinese steel industry, Baatar said.
“A part of the ore body that we’re looking at is very suitable, we think, for direct reduction iron,” he added. “The only way the steelmaking industry globally decarbonises is if China decarbonises.”'
https://www.ft.com/content/80f37963-c718-4f8b-8d77-0f0d5b1c99fe
This is going to be instructive to watch:
RIYADH, Saudi Arabia, Dec. 26, 2023 (GLOBE NEWSWIRE) -- The Future Minerals Forum (FMF), scheduled to take place 9-11 January in Riyadh, Saudi Arabia, today announced three new strategic partnerships to inform the global discourse on minerals and their critical role in sustainable global development and the need to transition to new energy sources. The new partnerships with CRU Group, Global AI and Wood Mackenzie will deliver business intelligence and insights in a series of studies to be published ahead of FMF. They complement existing partnerships with McKinsey & Company, Payne Institute for Public Policy, Clareo-DPI and Baker Institute.
Wood Mackenzie is embarking on a pivotal study to define the super region's potential. The white paper will identify key drivers for the creation of sustainable value chains as well as highlight the current challenges facing the global minerals and how they affect the minerals industry across this resource-rich area.
http://koreabizwire.com/future-minerals-forum-advances-global-discussion-on-clean-energy-transition/268729
Wood Mac published 2 reports in 2022/3 that clearly detailed the rise of green steel and, by extension all things DRI-EAF, hydrogen and even high grade related:
19 OCTOBER 2023 : STEEL DECARBONISATION TO REDEFINE SUPPLY CHAINS BY 2050
Wood Mackenzie report says new metallic hubs will emerge as steel industry accelerates carbon abatement efforts
https://www.woodmac.com/press-releases/steel-decarbonisation-to-redefine-supply-chains-by-2050/
26 SEPTEMBER 2022 :PEDAL TO THE METAL
IRON AND STEEL’S US$1.4 TRILLION SHOT AT DECARBONISATION
https://www.woodmac.com/zh/horizons/pedal-to-the-metal-iron-and-steels-one-point-four-trillion-usd-shot-at-decarbonisation/
However and despite their own reports that clearly point to demand for high grade iron ore, they have yet to join the dots to Zanaga. In fact their website still bears their March 2023 assessment of Zanaga prospects that, '...it is also likely the project will never proceed.' (Incidentally this is just a restatement of their position from pre-COVID).
March 2023: Report summary
Zanaga is one of several West African projects that are endeavouring to tap Africa's vast iron resources. Development stopped in 2015, but following the return to a stronger market, study work has resumed and multiple production and logistics scenarios being investigated. For the purposes of modelling the project’s cash flows we have pushed back first production to 2026, but it is also likely the project will never proceed.
https://www.woodmac.com/reports/metals-zanaga-iron-ore-mine-16550221/
> What will be fascinating (or funny) to watch is what might happen if Wood Mac's employers, being the Saudis and the FMF, announce that they are going to be part of imminent Zanaga development. LOL.
>> I wonder what Wood Mac's website might be saying by the end of next week.....
Perfect backdrop and drivers to compel strategics into Zanaga:
IRON ORE HITS $145 A TON IN SURPRISE TRADE WAR AFTERSHOCK
The property slowdown was expected to have a dampening effect on iron ore demand but higher steel exports and an increase in demand from the manufacturing sector, especially the booming business of making electric vehicles, appears to have made up for much of the property decline.
Despite the high iron ore price there is no sign of a rush by Australian miners to expand production, partly because of concern that the price could fall after the unexpected increase, but also because of the potential for Chinese Government intervention in the market.
THE ONLY BIG IRON ORE MINE IN CONSTRUCTION TODAY IS THE SIMANDOU PROJECT IN THE AFRICAN COUNTRY OF GUINEA BUT THAT IS HAPPENING ONLY AFTER THE INJECTION OF CHINESE PARTNERS TO SPEED THE DEVELOPMENT OF AN ALTERNATIVE SOURCE OF SUPPLY TO AUSTRALIAN ORE.
In Australia, it is only small miners showing any interest in the high iron ore price partly because the big miners, including BHP, Rio Tinto and Fortescue, have only recently completed construction of new mines, but they were built only to maintain output not to expand production.
An example of the slow progress in new mine development is the glacial progress on what is expected to be Australia’s next big iron ore mine, the Rhodes Ridge project of Rio Tinto and privately owned Wright Prospecting.
Discovered more than 50 years ago, Rhodes Ridge has been the subject of repeated legal disputes but got a green light for development to proceed late last year, but at what looks like snail’s pace.
https://www.forbes.com/sites/timtreadgold/2024/01/05/iron-ore-hits-145-a-ton-in-surprise-trade-war-aftershock/
Hi nibj - on Glencore this is unlikely IMO. The marketing agreement can be over-written and, in many ways, having Glencore on board provides a degree of comfort even to the likes of Baosteel and PIF, both of who I expect to be central players in Zanaga's development.
Add another 500k from Thursday:
04-Jan-24 09:53:55 8.8616 500,000 Unknown* 8.00 10.00 44.31k O
By the back of my envelope we have had well over 25m of larger nuggets and/or late reported trades just this week.
I'm sure that such outsized volume implies a deal, but I have yet to read any plausible rationale of the who and why of the participants.
Forget the retail market, it's all happening in larger nuggets. 3 more from yesterday:
04-Jan-24 12:19:49 7.75 900,000 Unknown* 9.00 9.50 69.75k O
04-Jan-24 09:54:55 8.60 300,000 Unknown* 9.00 9.50 25.80k O
04-Jan-24 09:52:34 8.9665 500,000 Unknown* 9.00 9.50 44.83k O
There's also a third 335,000 buy of today reported after the bell.
The question remains as to where the supply is coming from (given that Shard have not RNS'ed), and who is buying....
No Shard RNS as yet - which begs all manner of questions about recent volume, not least yesterday's blockbuster and volume.
Volume, ahead of any larger late trades, is already the best back to Nov 2017 - whatever that might signify.
Hmmmm. No Shard RNS, which would be obligatory if today's trades triggered T3.
There are two alternatives:
That they were in their entirety T2, however that would mean that all of the recent large lates (c.8m+) haven't been Shard. If so, then who or what has been supplying the volume that has been suppressing the SP on our good news? .....and why?
I am struggling to put a label on these trades.
Perhaps 'at market' transfers between connected accounts?
Key questions are now:
Has the overhang been cleared?
Are we now free to move higher? and
Are we clear for news?
HAHAHAHAHA - Please stop!!!!!