Australia-based Kogi Iron is planning to build a 750,000mt-per-year steel plant at its Agbaja iron ore mine in Kogi, Nigeria.
According to the company’s Q2 report, the miner has struck a facilitation agreement with the Nigerian government for the Agbaja Steel Project, which requires a capital expenditure of $8mn.
In stage 1, the plant will produce 250,000mt of steel billets annually and will gradually scale up its volume to 750,000mt in the final stage.
The initial estimates for the Agbaja iron ore mine indicate that it holds ferrous reserves of 147.5mn mt, graded at 33.2pc Fe, which could possibly feed the plant for 15 years in its first phase. An additional 318mn mt of 45pc Fe is expected to be mined In the second phase.
The company is currently developing the mine through a local subsidiary named KCM Mining while the plant will be equipped with an electric arc furnace that will be designed and installed by Tenova Pyromet.