With the 100% owned Agbaja Integrated Cast Steel Project (“Agbaja” or ‘the Project”) in southern Nigeria, Kogi Iron Limited (“Kogi” or “the Company”) is well placed to take advantage of the Nigerian Government’s target, as part of the Economic Recovery and Growth Plan (“ERGP”), for the country to become self sufficient in steel production.
The Company is currently undertaking a Definitive Feasibility Study (“DFS” or “the Study”) on the Project, which is planned to produce competitively priced steel billet, with the DFS expected to be completed by the end of CY2019. A key input into the DFS (including with regards to production volumes) are the results of a marketing study completed by MB Fastmarkets, which concluded that Nigeria has the potential to handle up to an additional 1.5 Mtpa of billet, with export potential of an additional 100,000 tpa to 250,000 tpa – the same study forecast a long term billet price of US$468/tonne, with the potential for premiums of US$150/tonne to US$200/tonne for higher quality product meeting CARES specifications.
