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(Sharecast News) - Zanaga Iron Ore announced the signing of a memorandum of understanding (MoU) with Arise Integrated Industrial Platforms on Wednesday, to advance the development of onshore and offshore port infrastructure for the Zanaga Iron Ore Project in the Republic of the Congo.
The AIM-traded firm said the agreement aimed to create a mineral export facility within the special economic zone (SEZ) at Pointe-Noire, which was being developed by Arise.
It said the collaboration was focussed on several key areas, including the completion of engineering works for the port's layout and infrastructure.
That would include utilities such as power, water, and internet, as well as facilities for concentrate handling, export infrastructure like breakwaters, jetties, and ship loaders.
The MoU also set the stage for defining a services agreement for SEZ leasing, facility maintenance, and utilities provision, along with a capital return agreement to ensure financial returns on the required infrastructure investments.
Zanaga said the project held one of the world's largest iron ore reserves, with a JORC-compliant resource of 6.9 billion tonnes and reserves of 2.1 billion tonnes.
The project was planned to be developed in stages, targeting a production capacity of 30 million tonnes per annum.
Arise, known for its expertise in developing industrial ecosystems and logistics solutions, was leading the SEZ development in Pointe-Noire and already managed several port assets in West Africa.
Zanaga said its involvement would position the project to benefit from world-class infrastructure and efficient logistics within the SEZ.
"Arise possesses an excellent track record in the successful development of bulk minerals ports in West Africa and successful collaboration with private corporations such as ZIOC and its subsidiary MPD Congo to ensure high quality project execution," said chief executive officer Martin Knauth.
"This partnership represents a major milestone for the Zanaga Project and I look forward to working with the Arise team to rapidly advance the mineral export facility to a construction decision, alongside the Zanaga Project's associated mine and infrastructure facilities."
At 1341 GMT, shares in Zanaga Iron Ore Company were up 28.15% at 6.35p.
Reporting by Josh White for Sharecast.com.