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Zanaga Iron Ore Co Ltd on Wednesday said test results have confirmed that its project can produce high-grade iron ore concentrate suitable for a growing market for low-carbon steel, made via electric arc furnaces. Zanaga shares were up 12% at 8.76 pence in London on Wednesday afternoon. The iron explorer focused on the Republic of Congo said its test work showed that both hematite and magnetite samples from the project meet the industry’s stringent specifications for direct reduction iron, or DRI, pellet feed. The hematite concentrate returned 68.5% iron, while the magnetite yielded 69.1%. Both also showed low levels of silica, alumina, and phosphorus, impurities that DRI steelmakers seek to avoid. ‘These encouraging metallurgical results further reinforce our confidence in the Zanaga project’s ability to produce premium-quality iron ore at large scale,’ said Chair Clifford Elphick. ‘Achieving DRI grade product quality is a critical step toward enabling the Zanaga Project to supply the rapidly growing electric arc furnace steel producers.’ DRI-grade material is in rising demand as steelmakers shift away from traditional coal-fired blast furnaces toward cleaner electric arc processes, which require high-purity iron inputs. Zanaga said its test results position the project to benefit from this transition. Chief Executive Officer Martin Knauth said the company will soon publish updated project economics based on the DRI potential, and is evaluating a pellet plant to further enhance value. ‘The achievement of enhanced DRI product quality provides a positive base for our ongoing value engineering work,’ Knauth said. Zanaga completed its main test work in China, with confirmatory analysis in the UK. It said changes to the processing flow sheet improved results without significantly altering expected costs. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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