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Aim-listed iron-ore and manganese developer Ferrex expected the mining permit for its Nayega manganese project, in Northern Togo, to be awarded during the fourth quarter of the year, MD Dave Reeves said on Monday.

He noted that the definitive feasibility study for the 250 000 t/y manganese mine was nearing completion with the finalisation of the technical aspects expected within the next eight weeks.

“The Ministry of Mines and Energy has stated that the government has hired a consultant to assist in the drafting and preparation of the mining permit and associated fiscal terms,” Reeves pointed out, adding that it was expected that the company would soon be invited to start discussions on the proposed terms of the permit.

“On successful conclusion of these negotiations, the permit must then pass through all appropriate signatories and reviews in government before final sign off is obtained.”

He added that the project’s environmental permit application had also been submitted, with the environmental permit expected to be awarded early next quarter.

Meanwhile, Ferrex had also completed the scoping study on a proposed sintering and blast furnace facility to produce about 60 000 t/y of a 74% high-carbon ferromanganese alloy product, in Togo, in the medium term.

This study had indicated operating costs of $665/t for the proposed facility, which was among the lowest worldwide, Ferrex said.

“The company and the government of Togo are highly encouraged by the findings of the new scoping study and the possible production of ferromanganese in Togo,” Reeves said.

He added that the company would rapidly advance the testwork required for the prefeasibility study, stating that Ferrex hoped to release this study within six months of the award of the mining permit for Nayega.

“We believe the ferromanganese operation could be constructed as a second phase once the main Nayega mining operation has reached steady state, and that it will greatly improve the profitability of the operation, as well as the length of operation. With the study showing a very low cost of production, this could transform this project into a long-life, high-margin cash-producing asset for the company,” Reeves said.

• [Editor:Sophie]