The Agbaja Integrated Steel Project is located on the Agbaja Plateau in Kogi State, Nigeria, approximately 200 kilometres from the capital city, Abuja. The Plateau hosts an extensive, shallow, flat-lying channel iron deposit (CID) and Kogi Iron has determined a Probable Ore Reserve of 205 million tonnes at a grade of 45.7% iron (Fe), estimated in accordance with the JORC (2012) code. Mineral Resources on the plateau are 586 million tonnes with an in-situ grade of 41.3% and comprise an Indicated Mineral Resource of 466 million tonnes at 41.4% Fe and an Inferred Mineral Resource of 120 million tonnes at 41.1% Fe, all estimated in accordance with the JORC (2012) code.
The Agbaja Project is uniquely positioned proximal to existing, under-utilised infrastructure including road, river and power suitable to facilitate a major steel project.
In January 2017, the Company announced its intention to develop an integrated steel plant utilising the company owned iron ore deposit and nearby coal and limestone sources. The results of a laboratory scale test on the iron ore demonstrated that it could be converted to a steel product suitable for electric arc furnaces. In November 2017, the Company commenced a Pilot Plant Test Program on a large bulk sample to demonstrate the process in a continuous batch mode.
Kogi Iron is now progressing a Definitive Feasibility Study to determine the economic viability of the project and to support the financing of a 520,000 tonne per annum integrated steel plant.
SD Capital and GBK Ventures Ltd were engaged in October 2017 to secure debt funding for the Project as well as equity finance to complete the DFS and Project financing.