LONDON (ShareCast) - (Sharecast News) - Zanaga Iron Ore Company updated the market on the Zanaga iron ore project on Thursday, reporting that for the floating offshore port facility, a concept study had been completed on the viability of a floating dewatering, storage and offloading port facility (FDSO).
The AIM-traded firm said the potential for a $184m reduction to capital costs had been indicated for the 12 million tonnes per annum (Mtpa) first stage of the 30Mtpa project.

No change was expected to operating cost, significant net present value and internal rate of return improvement, the board said.

Looking at the early production project, Zanaga said one to five Mtpa production scenarios were under investigation, focusing on processing facilities and suitable logistics solutions through the Republic of the Congo or the Republic of Gabon.

"We are pleased to announce the conclusion of a concept study into a floating port facility for the Zanaga Project," said non-executive chairman Clifford Elphick.

"This evaluation exercise demonstrates the clear potential of a floating port facility to enhance significantly the economics of the Zanaga Project through the reduction of upfront capital costs and enhanced internal rate of return.

"In addition, there is potential to achieve significant ancillary technical benefits such as reduced environmental impact, elimination of dredging, and significant flexibility on coastal route selection."

At 1213 BST, shares in Zanaga Iron Ore Company were down 27.01% at 8.85p.

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