THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

3 February 2025

Power MoU signed with CEC

Zanaga Iron Ore Company Limited ("ZIOC") is pleased to announced that ZIOC, and its 100% subsidiary MPD Congo, have today signed a memorandum of understanding with Centrale Électrique du Congo (CEC) SA to evaluate potential solutions to supply the Zanaga Iron Ore Project's power demand, leveraging CEC's existing assets.

CEC is a private power producer based in the Republic of Congo, owned by the Government of the Republic of Congo (80%) and Eni Congo (20%). With an installed capacity of 484 MW from its assets located in Côte Matève and Point-Noire, CEC currently supplies more than 70% of the country's electricity demand, benefitting from the vast gas resources developed by Eni Congo. 

Under the terms of the memorandum, the parties will assess the technical, economic, and legal aspects required for power generation and distribution for the Zanaga Project's needs for its Stage One operations, allowing it to reach a production capacity of 12 millions tons per annum of iron ore with a view to further expansions.

Background

ZIOC aims to develop the Zanaga Iron Ore Project, comprising iron ore deposits located in the Zanaga mining licence area, in the western part of the Republic of Congo. The Zanaga Project represents one of the largest iron ore reserves in the world with a JORC compliant 6.9 billion tonne iron Ore Resource and with 2.1 billion tonnes in iron Ore Reserve. The Zanaga Project is planned to be developed in stages, ultimately ramping up to targeted 30 Mtpa of iron ore production capacity. CEC is a successful energy company owned by Eni Congo and the Government of the Republic of Congo. CEC operates significant power generation assets near Pointe-Noire, providing the bulk of domestic power supply in the Republic of Congo.

ZIOC has been actively engaging with multiple power solution providers, including existing producers such as CEC, and power companies seeking to develop additional future power projects in the Republic of Congo.

Clifford Elphick, Chairman of ZIOC commented:

"ZIOC's partnership with CEC further reinforces the industry's view that the Zanaga Project is world class, opening the path to establish the required power needs for the Project."

Martin Knauth, CEO of ZIOC commented:

"Together with the recent partnership with Arise to develop bulk mineral export facilities, the partnership with CEC to develop a range of power solutions supports a pathway to further de-risk the Zanaga Project from the two largest development challenges, being the availability of adequate power and port infrastructure. Such solutions, together with CEC's capability, continue to include progressing hydroelectric and solar options. In having a partner in CEC, I can confidently look forward to achieving our next Project milestones."

The Zanaga Iron Ore Company Limited LEI number is 21380085XNXEX6NL6L23.

For further information, please contact:

Zanaga Iron Ore

Corporate Development and                         Andrew Trahar

Investor Relations Manager                           +44 20 7399 1105

Panmure Liberum Limited

Nominated Adviser, Financial                        Scott Mathieson, John More

Adviser and Corporate Broker                       +44 20 3100 2000

Shard Capital Partners LLP

Corporate Broker                                                Damon Heath

                                                                                   +44 207 186 9952

About CEC:

CEC is a private power producer based in the Republic of Congo, owned by the Government of the Republic of Congo (80%) and Eni Congo (20%). With an installed capacity of 484 MW from its assets located in Côte Matève and Point-Noire, CEC currently supplies more than 70% of the country's electricity demand, benefitting from the vast gas resources developed by Eni Congo. 

About ZIOC:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is an iron ore exploration and development company, with the Company's flagship asset being its 100% owned Zanaga Iron Ore Project located in the Republic of Congo, for which the Government Mining Licence, Environmental Permit and Mining Convention are all in place.

In light of the changes in the world's economy, and the growing demand for low-carbon steel production, the Zanaga Project is positioned to become one of the largest producers of high grade premium pellet feed iron ore.