Mining development company Kogi Iron and its 100% owned Nigerian operating company KCM Mining recently presented its quarterly activity report for the three months ended 31 March 2019.
In a statement, the company says that during the period KCM entered into a Letter of Intent (LOI) to progress discussions with the Inner Galaxy Group, a Nigerian-based company with steel production operations in Lagos State.
The LOI is intended to provide a framework for further discussions to be held regarding a strategic partnership for cooperation in the development of the Agbaja Cast Steel Project and the long term off take of production from the Agbaja Cast Steel Project. According to Kogi, any offtake agreement entered into will be for no more than a third of the total production capacity of the Agbaja Cast Steel Project.
Inner Galaxy is the main producer of steel product in the Port Harcourt region and as well as supplying the Nigerian market successfully exports to regional West African markets.
Furthermore, following the completion of testwork by Mintek and Tenova as well as the marketing study undertaken by Fastmarkets MB, the company announced it is now in a position to further progress the Definitive Feasibility Study (DFS) and the final phase of the Environmental Impact Study (EIS) for the proposed Agbaja iron ore mine in Nigeria.