THIS
ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS
PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH
THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR
3 February 2025
Power MoU signed with
CEC
Zanaga Iron Ore Company Limited
("ZIOC") is pleased to announced that ZIOC, and its 100%
subsidiary MPD Congo, have today signed a memorandum of
understanding with Centrale Électrique du
Congo (CEC) SA to evaluate potential solutions to supply
the Zanaga Iron Ore Project's power demand, leveraging CEC's
existing assets.
CEC is a private power producer
based in the Republic of Congo, owned by the Government
of the Republic of Congo (80%) and Eni Congo (20%). With
an installed capacity of 484 MW from its assets located in Côte
Matève and Point-Noire, CEC currently supplies more than 70%
of the country's electricity demand, benefitting from the vast gas
resources developed by Eni Congo.
Under the terms of the memorandum,
the parties will assess the technical, economic, and legal aspects
required for power generation and distribution for the Zanaga
Project's needs for its Stage One operations, allowing it to reach
a production capacity of 12 millions tons per annum of iron ore
with a view to further expansions.
Background
ZIOC aims to develop the Zanaga Iron
Ore Project, comprising iron ore deposits located in the Zanaga
mining licence area, in the western part of the Republic of Congo.
The Zanaga Project represents one of the largest iron ore reserves
in the world with a JORC compliant 6.9 billion tonne iron Ore
Resource and with 2.1 billion tonnes in iron Ore Reserve. The
Zanaga Project is planned to be developed in stages, ultimately
ramping up to targeted 30 Mtpa of iron ore production capacity. CEC
is a successful energy company owned by Eni Congo and the
Government of the Republic of Congo. CEC operates significant power
generation assets near Pointe-Noire, providing the bulk of domestic
power supply in the Republic of Congo.
ZIOC has been actively engaging with
multiple power solution providers, including existing producers
such as CEC, and power companies seeking to develop additional
future power projects in the Republic of Congo.
Clifford Elphick, Chairman of ZIOC
commented:
"ZIOC's partnership with CEC
further reinforces the industry's view that
the Zanaga Project is world class, opening the path
to establish the required power needs for the Project."
Martin Knauth, CEO of ZIOC commented:
"Together with the recent
partnership with Arise to develop bulk mineral export
facilities, the partnership with CEC to develop a range of
power solutions supports a pathway to further de-risk
the Zanaga Project from the two
largest development challenges, being the availability of
adequate power and port infrastructure. Such solutions, together
with CEC's capability, continue to include progressing
hydroelectric and solar options. In having a partner
in CEC, I can confidently look forward
to achieving our next Project milestones."
The Zanaga Iron Ore Company Limited
LEI number is 21380085XNXEX6NL6L23.
For further information, please
contact:
Zanaga Iron Ore
Corporate Development
and
Andrew Trahar
Investor Relations
Manager
+44 20 7399 1105
Panmure Liberum Limited
Nominated Adviser,
Financial
Scott Mathieson, John More
Adviser and Corporate Broker
+44
20 3100 2000
Shard Capital Partners LLP
Corporate
Broker
Damon Heath
+44 207 186 9952
About CEC:
CEC is a private power producer
based in the Republic of Congo, owned by the Government
of the Republic of Congo (80%) and Eni Congo (20%). With
an installed capacity of 484 MW from its assets located in Côte
Matève and Point-Noire, CEC currently supplies more than 70%
of the country's electricity demand, benefitting from the vast gas
resources developed by Eni Congo.
About ZIOC:
Zanaga Iron Ore Company Limited
(AIM ticker: ZIOC) is an iron ore exploration and development
company, with the Company's flagship asset being its 100%
owned Zanaga Iron Ore Project located in the Republic of
Congo, for which the Government Mining Licence, Environmental
Permit and Mining Convention are all in place.
In light of the changes in the
world's economy, and the growing demand for low-carbon steel
production, the Zanaga Project is positioned to become
one of the largest producers of high grade premium pellet
feed iron ore.
