Glencore Xstrata makes progress with Zanaga iron ore project

Mega miner Glencore Xstrata has announced that its Zanaga iron ore project, based in the Republic of Congo, will now proceed in a staged manner (release).

They say that will result in a substantial reduction in the initial capital requirement.

The Project is working closely with the Republic of Congo Government to advance its development and support the Government's objectives for infrastructure and mining development in the country. The Feasibility Study will be completed in 2Q 2014, and will then form the basis for an application to the Republic of Congo Government for a Mining Exploitation Licence. Any investment decision for the Project would follow the conclusion of the Feasibility Study.

As a result of the change, partner Zanana Iron Ore Company (ZIOC) and Glencore have "agreed to jointly explore funding options with a view to attracting third party debt and equity financing for potential project implementation."