Akora Resources (ASX: AKO) has confirmed the quality of direct shipping ore (DSO) from its Bekisopa iron project in Madagascar for the specialist refining market.
The initial Bekisopa development will aim to take advantage of direct reduced iron-electric arc furnace technology, used to make greener steel without coal and with considerably lower carbon emissions.
This process requires iron ore grades of at least 67%.
The company has recently undertaken numerous tests on the quality of the Bekisopa ore as part of the project’s pre-feasibility study (PFS), with the test work returning 71% iron ore fines and 29% iron ore lump product proportions.
The lump product grade averaged 65% iron, while the fines product grade averaged 61% iron, from a 62% iron average feed grade.
“The lump and fines split confirms that our stage 1 high-grade Bekisopa iron ore project should be able to deliver two DSO products to blast furnace steel makers,” managing director Paul Bibby said.
“Lump iron ore product is the preferred blast furnace feed material and these results indicate that the Bekisopa product should achieve both a lump and grade premium.”
Akora’s November 2023 scoping study used a long-term benchmark iron ore price of US$100 per tonne and a lump premium of US$12/t.
It did not assign premiums or penalties for product iron grades.
The company said that Bekisopa’s product mix at typical market terms is expected to maintain scoping study financial considerations.
Akora will now focus on adding product mix into the PFS product quality and financial assessments.
The company will also complete magnetic separation upgrade trials on the fines product materials to determine if they can improve upon the iron grades.
The first stage of development at Bekisopa is currently being assessed to produce up to 2 million tonnes per annum of a 60% iron average grade direct shipping ore over the first five years.
Akora would then sell this product to blast furnace-basic oxygen furnace steelmakers to provide cashflow for ongoing development of the company’s four iron ore projects across Madagascar.
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