Zanaga Iron Ore Confirms Positive DRI Plant Costing Outcomes

Why It Matters

The upgraded economics and modular DRI approach boost Zanaga’s attractiveness to investors and support the broader move toward lower‑carbon steelmaking, potentially reshaping iron‑ore supply dynamics in Central Africa.

Key Takeaways

• Stage‑one capex $2.17 bn, NPV $2.54 bn, up 30.9%
• IRR 22.5% for stage one, indicating strong returns
• Modular DRI plant and thickened tailings reduce permitting risk
• Optional single‑pipeline design simplifies expansion and logistics
• Final investment decision slated for 2027, targeting EAF steel demand

Pulse Analysis

The global steel sector is accelerating its transition to electric‑arc‑furnace (EAF) technology, which relies on high‑grade direct‑reduced‑iron (DRI) rather than traditional blast‑furnace feedstock. Zanaga’s newly validated DRI flowsheet taps into this trend, offering a premium pellet feed that can meet the stringent specifications of low‑carbon steelmakers. By situating the project in the Republic of Congo, Zanaga also leverages the country’s abundant high‑grade hematite deposits, potentially reducing logistics costs compared with more distant sources.

Financially, the feasibility study lifts the project’s attractiveness: stage‑one capital spending is estimated at $2.17 bn, delivering a net present value of $2.54 bn—an increase of nearly 31% over prior models—and an internal rate of return of 22.5%. The modular architecture, which bundles a DRI unit, a hematite concentrator, thickened tailings management and a dedicated pipeline, spreads risk and shortens permitting timelines. An optional single‑pipeline alternative further simplifies expansion, offering a scalable path that can adapt to market demand without extensive new approvals.

For investors and lenders, the updated economics and clear path to a 2027 final investment decision signal a lower‑risk, high‑return opportunity in a region traditionally viewed as challenging. The project’s alignment with decarbonisation goals adds ESG appeal, while the modular design promises operational flexibility. As the steel industry continues to prioritize greener inputs, Zanaga’s DRI plant could become a cornerstone of Central African iron‑ore supply, attracting strategic capital and reinforcing the Congo’s emerging role in the global mining landscape.