KCM Mining Limited


Agbaja Integrated Steel Project

Positive Preliminary Feasibility Study for Agbaja Project

Kogi Iron Limited announced the results of a positive and robust outcome for the Preliminary Feasibility Study ("PFS") on its 100% owned Agbaja Iron Ore Project in Kogi State, Federal Republic of Nigeria on 29 January 2014.

The highly positive results of the study determined that the development and operation of a mine processing plant at Agbaja to produce 5 Mtpa of iron ore concentrate is technically feasible, economically viable and socially and environmentally acceptable.


  • PFS establishes robust economic and technical viability of a 5 Mtpa iron ore project at Agbaja
  • Project is highly attractive with IRR of 23.7% and estimated pre-tax NPV of US$420 million (@12% discount)
  • CAPEX estimate US$497 million and capital intensity of US$99.4/t
  • Average operating costs US$42.98/t concentrate FOB
  • Four year capital payback
  • Project ranks in the bottom quartile for capital intensity and the bottom half of operating cost curve for magnetite projects
  • Long term forecast FOB price of US$73.00/t iron ore concentrate
  • Net margin US$30/t and average EBITDA of US$136 million per annum

To view the full announcement, please click here