Tribe Technology set to deliver healthy pipeline of orders from Tier-One miners. Watch the video here.
The news that CMEC is looking at hydropower for Zanaga is hugely positive and a massive tell that development is nigh. There's also the kicker that hydro is 'green power', thereby helping along the whole green steel value chain.
However I think we may have missed the most important part in today's update, the part on the EPC costings:
CHINESE EPC PARTNER FS UPDATE PROGRESS
o The initial review and re-costing phase of the 2014 Feasibility Study ("2014 FS") has been completed, indicating potential cost reductions versus the 2014 FS.
o The market enquiry and financial modelling phase 2 is underway and will now be extended into Q1 2024 given the comprehensive nature of the update.
> The EPC came in as promised by the end of 4Q23, and then ZIOC have pressed quickly on, and here is an absolutely reveal:
'...MARKET ENQUIRY...IS UNDERWAY...'
>> This will be ascertaining actual demand and pricing for Zanaga product: pellet fines (66%Fe rising 68.5%Fe), cold pellet prices, and green premiums for the whole. In turn this will feed directly into both an updated NPV *AND* hence ZIOC valuations for incoming Strategic Investors.
>>> 100% they are looking to get this all done by the upcoming FMF in Riyadh this January - without a doubt.
Things were equally silent in equity updates, with Zanaga Iron Ore announcing it had signed a memorandum of understanding with China Machinery Engineering Corporation (CMEC) for hydroelectric power solutions at the Zanaga Iron Ore Project.
The firm said the agreement aimed to advance engineering studies for hydroelectric sites near the project and establish funding arrangements between the Republic of the Congo's government and third parties.
Additionally, Zanaga reported on progress of its feasibility study update with its Chinese EPC partner, indicating potential cost reductions compared to the 2014 study, with the second phase extending into the first quarter of 2024.
https://www.voxmarkets.co.uk/articles/london-pre-open-stocks-set-for-another-positive-start-feaa1a7/
Zanaga shares rise on accord for project hydroelectric power solutions
28 December 2023, 09:48
ZANAGA IRON ORE CO LTD ON THURSDAY SAID IT SIGNED AN ACCORD WITH CHINA MACHINERY ENGINEERING CORP OVER HYDROELECTRIC POWER SOLUTIONS FOR THE ZANAGA IRON ORE PROJECT.
Shares in Zanaga were up 28% to 11.20 pence each in London on Thursday morning.
The iron explorer focused on the Republic of Congo said the memorandum of understanding was agreed following CMEC’s preliminary inspections and engineering of potential hydroelectric sites near the Zanaga project.
Zanaga said the accord was agreed with the following objectives: advance engineering and related studies for the identified hydroelectric sites near the Zanaga project; and draft arrangements for the funding of development and operation of the identified hydroelectric projects, between the Republic of Congo government and third parties.
Zanaga also updated on its feasibility study with an unnamed Chinese engineering, procurement & construction partner.
The initial review and re-costing phase of the 2014 feasibility study has been completed, indicating potential cost reductions from the 2014 study.
Zanaga said the market enquiry and financial modelling phase 2 is underway and will now be extended into the first quarter of 2024 given the ‘comprehensive nature of the update’.
‘ZIOC’s feasibility study update process is progressing well and has identified a number of potential value engineering opportunities,’ said Chair Clifford Elphick.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
https://www.sharesmagazine.co.uk/news/market/1703756936809170400/zanaga-shares-rise-on-accord-for-project-hydroelectric-power-solutions
C/O AD Ports in July:
Abu Dhabi, UAE – 20 July 2023: AD Ports Group (ADX: ADPORTS), the leading global facilitator of trade, logistics, and industry, and China Machinery Engineering Group Corporation (CMEC GROUP), a state-owned key enterprise directly managed by the central government of China, have recently signed a Memorandum of Understanding (MoU) to establish a strategic cooperative relationship.
> CMEC: a state-owned key enterprise directly managed by the central government of China
>> So the central government of China is proposing building hydropower for Zanaga.
We closed yesterday, Wednesday, with a break higher:
The bid was at 8.50p and we had a large late reported trade; a buy of 200,000 shares at 8.70p - the largest of the day at the high of the day.
Game on.
ZIOC have really got a shuffle on here, suggesting considerable urgency and progress behind the scenes. A Hydropower Power Partnership has been trailed as a key milestone and one due in 1Q24, so we are ahead of the game on this. As per September 23:
Hydro power partnership - Q1 2024 (Memorandum of Understanding)
CMEC ARE HUGE. Furthermore this July they signed a moU with Ad Ports to establish a Strategic Cooperative Relationship:
Abu Dhabi, UAE – 20 July 2023: AD Ports Group (ADX: ADPORTS), the leading global facilitator of trade, logistics, and industry, and China Machinery Engineering Group Corporation (CMEC GROUP), a state-owned key enterprise directly managed by the central government of China, have recently signed a Memorandum of Understanding (MoU) to establish a strategic cooperative relationship.
The MoU details the ways in which the two companies will explore potential opportunities globally, but particularly in the Middle East, Central Asia, South Asia, South East Asia, East Asia, Africa, South America, and Europe.
Under the agreement, the two parties will cooperate within various fields and sectors, including global industry and infrastructure development, financing, building, operation, and maintenance, global economic cities and free zones development, and global logistics.
https://www.adportsgroup.com/en/news-and-media/2023/07/20/ad-ports-group-and-china-machinery-engineering-group-corporation-sign-memorandum-of-understanding
> As I say this all implies considerable progress, and significant synergies, behind the scenes.
Well, that’s massive news
2 large lates just showing:
15:34:15 8.40 150,000 12.60k O
14:27:08 8.7512 200,000 17.50k O
Demand for green steel being driven by ESG, Net Zero and carbon border taxes - plus iron ore prices are surging.
Now add in premiums for high grade and cold pellets.....
Iron Ore Surges Past $140 to The Highest Since June 2022
https://www.bloomberg.com/news/articles/2023-12-26/iron-ore-surges-past-140-to-the-highest-since-june-2022
Rewind to last January at FMF23. The PIF-Ma'aden JV was formed to specifically secure globally significant sources of iron ore, necessarily Zanaga's high grade, to feed Saudi Arabia's green steel industry. To date not one shovel full has been secured...
SAUDI ARABIA HAS LAUNCHED A MINING FUND THAT PLANS TO INVEST UP TO $15BN OF CAPITAL IN OVERSEAS ASSETS according to people familiar with the details, as the country works to reduce its dependence on fossil fuels.
The venture, 51 per cent owned by Saudi state-owned miner Ma’aden, with the remainder owned by the country’s Public Investment Fund, will take non-operating minority stakes in mining projects internationally, the two companies said on Wednesday.
That will help Saudi Arabia, which is the world’s second-largest oil producer, to secure resources such as iron ore, copper, nickel and lithium for domestic mineral processing and other industrial activities like steelmaking.
The companies said that the fund’s initial capital would be $50mn and the two shareholders would provide just over $3bn “if additional funding is required”, according to a joint statement.
However, two people familiar with the fund’s plans said that Saudi Arabia has publicly downplayed the scale of the investment plans and that the $50mn represented its first year of working capital and the $3bn the amount intended for investment over the next 12 months.
Given the scale of projects in commodity markets, the fund is prepared to deploy more than $15bn of capital for investments over the coming years as suitable opportunities emerge, the people added. PIF declined to comment beyond the statement.
https://www.ft.com/content/46bf21a4-e626-4581-ad85-8b74bbd82e4e
This on FMF24, Riyadh 9-11 Jan upcoming:
MA’ADEN TO PLAY PIVOTAL ROLE IN ADDRESSING INDUSTRY CHALLENGES AT FUTURE MINERALS FORUM 2024
November 13, 2023
RIYADH, Saudi Arabia, Nov. 13, 2023 (GLOBE NEWSWIRE) -- The Future Minerals Forum (FMF) announced today that Ma’aden will return as a Founding Partner to the event for the third consecutive year. Ma’aden, the largest multi-commodity natural resources company in the Middle East, will play a central role again in discussions shaping the global minerals sector during FMF 2024 in January.
This event will focus on creating resilient and responsible mineral value chains in the resource-rich mineral super region of Africa, Western and Central Asia. FMF 2024 will convene government leaders, mining executives, investors, and other stakeholders to drive partnership and growth contributing to a sustainable sector and strengthening global minerals supply chains.
Last year at FMF Ma’aden made a series of significant announcements including a major joint venture with PIF, Manara Minerals, supporting global minerals supply chains that are critical to the energy transition. Ma’aden also announced milestone agreements with global mining leaders Ivanhoe Electric and Barrick Gold Corporation helping to drive forward the development of the Kingdom’s mining sector.
The Forum plays a key role in supporting investment and partnerships in Saudi Arabia and globally.
Exciting new initiatives that will be discussed at FMF 2024 include...creating a green metals hub within the super region by utilizing modern technologies and developing processing centers.
https://www.globenewswire.com/en/news-release/2023/11/13/2779040/0/en/Ma-aden-to-play-pivotal-role-in-addressing-industry-challenges-at-Future-Minerals-Forum-2024.html
There's been quite some interest in ZIOC's latest tweet, so here's a reprint of my pre-Christmas post. Fair to say that I am wishing the New Year away and the arrival of the FMF this January 9th...
Quite some development a few hours back as ZIOC tweeted. Not so much as their rarity (5 months since the last) but the connotations and implications:
Zanaga Iron Ore @Zanaga_Iron_Ore
Pleased to confirm that #ZIOC’s CEO, Mr Marty Knauth, and other members of the ZIOC team will be at the #FutureMineralsForum in Riyadh from 9-11 Jan 2024 to progress engagement with strategic partners
#steel #ironore #China #SaudiArabia #FMF #Zanaga #RepublicofCongo
2:04 PM · Dec 20, 2023 from Riyadh, Kingdom of Saudi Arabia 355 Views
https://twitter.com/Zanaga_Iron_Ore/status/1737474083812528160
1. 'progress engagement'
> that speaks for itself. Standby for news between now and then, and during the event. January 9th-11th upcoming.
2. 'strategic partners'
> partners plural - and they'll be at the FMF
3. from Riyadh
> ZIOC's twitter account manager, which used to be AT himself, is currently in Riyadh, the week before Christmas.
4. In order to 'progress engagement' the EPC re-costings must be in and make a tangible difference.
5. FMF24 will be one year after FMF23 last January at which Manara Minerals was formed - the PIF-Ma'aden JV specifically tasked with securing high grade iron ore for the Saudi green steel industry. To date not 1 tonne has been secured. I speculate that ZIOC will be honoured guests at the event.
6. Diplomatically it would be impossible for ZIOC (48% Glencore) to be at FMF24 in Riyadh and then announce a deal that did not at the very least include the Saudis themselves. Most likely, IMO, a Saudi-lead consortium of Gulf States plus Chinese interests.
We shall see, of course, however today's tweet is mighty significant.
Tut tut. A few minutes after today's early close 2 late trades from yesterday: 2x 300,000 at 8.00p.
By my reckoning Shard sold almost 3m from T2 this week.
$6-$8bn, possibly x3 for a fully proven Reserve
Simandou’s infrastructure bill alone is put at $14-16bn, which is sure to overrun in both time and money.
FWIW I read a few months back that WCS refused to divulge how much they had paid to secure their 2 blocks of Simandou.
I do agree, alwayshopingfortheverybestforallofusverysoon! Consortium is surely known and in place.
This was something of a tell for me. Back in September MBS talked of needing to close a few things on Vision2030 in order to roll out Vision2040. Saudi green steel is integral and essential to Vision2030 and then Vision2040 after that...which means securing high grade iron ore is equally important.This is what MBS said:
"Saudi Arabia is to begin working on the next phase of its economic diversification plan known as Vision 2030 and hopes to unveil its Vision 2040 as early as 2027, Crown Prince Mohammed bin Salman said in an interview this week.
“Today we’re trying to close a few things, we’re aiming to close in the first half of 2024 and then we’re going to shift to implementation and starting preparation for Vision 2040 and announcing Vision 2040 in 2027-2028. So that’s the main thing we are focusing on,” he told Fox News when asked about the government’s current priorities. "
https://www.agbi.com/articles/saudi-arabia-to-begin-preparing-vision-2040/
As per MBS, and also ZIOC's tweet yesterday, FMF24 in Riyadh this January is '....in the first half of 2024....'
A couple more points of note:
Whoever has the ZIOC twitter account (AT) must have hot footed from the AGM to then be in Riyadh yesterday, suggesting some urgency, and
ZIOC talk of ‘progressing engagement with strategic partners (plural)’ which implies said partners are both already known/selected and themselves already working towards Zanaga development.
The tweet really was something to behold.
Quite some development a few hours back as ZIOC tweeted. Not so much as their rarity (5 months since the last) but the connotations and implications:
Zanaga Iron Ore @Zanaga_Iron_Ore
Pleased to confirm that #ZIOC’s CEO, Mr Marty Knauth, and other members of the ZIOC team will be at the #FutureMineralsForum in Riyadh from 9-11 Jan 2024 to progress engagement with strategic partners
#steel #ironore #China #SaudiArabia #FMF #Zanaga #RepublicofCongo
2:04 PM · Dec 20, 2023 from Riyadh, Kingdom of Saudi Arabia 355 Views
https://twitter.com/Zanaga_Iron_Ore/status/1737474083812528160
1. 'progress engagement'
> that speaks for itself. Standby for news between now and then, and during the event. January 9th-11th upcoming.
2. 'strategic partners'
> partners plural - and they'll be at the FMF
3. from Riyadh
> ZIOC's twitter account manager, which used to be AT himself, is currently in Riyadh, the week before Christmas.
4. In order to 'progress engagement' the EPC re-costings must be in and make a tangible difference.
5. FMF24 will be one year after FMF23 last January at which Manara Minerals was formed - the PIF-Ma'aden JV specifically tasked with securing high grade iron ore for the Saudi green steel industry. To date not 1 tonne has been secured. I speculate that ZIOC will be honoured guests at the event.
6. Diplomatically it would be impossible for ZIOC (48% Glencore) to be at FMF24 in Riyadh and then announce a deal that did not at the very least include the Saudis themselves. Most likely, IMO, a Saudi-lead consortium of Gulf States plus Chinese interests.
We shall see, of course, however today's tweet is mighty significant.
'Congo'