Zanaga Iron Ore plc (LON:ZIOC) is making significant strides towards bringing its world-class iron ore project in the Republic of Congo into production. With a fully permitted project, strategic partnerships in place, and ownership now consolidated, Zanaga is positioned to become a major low-cost producer of high-grade iron ore concentrate.
Zanaga’s iron ore project, one of the largest globally with a JORC-compliant resource of 6.9 billion tonnes, already has government approvals in hand—including a Mining Licence and Environmental Permit. The company’s acquisition of Glencore’s 43% stake now gives Zanaga 100% ownership and allows for a clean slate in forging new strategic alliances. The exit of Glencore also removes legacy offtake obligations, providing fresh flexibility for future commercial arrangements.
In a key development, a group of industry veterans including former executives from Anglo American, Rio Tinto, and Vale—alongside private equity backing—have joined as strategic investors via Greymont Bay. Their collective expertise and investment are expected to significantly de-risk the path to construction and production.
According to Sheldon Modeland, P.Geo., Research Analyst at Shard Capital:
“ZIOC does not fit within Glencore’s corporate strategy, which is focused on its coal and base metal assets rather than greenfield development projects. We view Glencore’s clean exit as positive news for ZIOC as the high-quality iron ore project can now be developed more readily with new strategic partners.”
The 2024 Feasibility Study outlines a phased development approach. Stage 1 aims to produce 12 million tonnes per annum (Mtpa) of 66% Fe concentrate, expanding to 30Mtpa in Stage 2. The study indicates robust economics with a combined NPV of US$7.4 billion and an IRR of 28%, supported by a long mine life and premium-grade product (68% Fe) well-suited for low-carbon steel production.
Shard Capital places a base case valuation of 60p per share, reflecting a 500% upside from the current share price. Their analysis includes a 90% risk-adjusted haircut to account for execution and financing risks—highlighting the scale of potential if the project proceeds as planned.
Final Thoughts
With major permits secured, a simplified ownership structure, and strong investor backing, Zanaga Iron Ore is now in prime position to move forward. Its high-grade product, global-scale resource, and low-cost profile make it an attractive prospect for strategic partners and the global push toward greener steel production.
