Akora Resources Bekisopa DSO project to benefit from national highway upgrade
A pre-feasibility study for the development of Akora Resources’ (ASX: AKO) high-grade Bekisopa direct shipping iron ore (DSO) project in Madagascar has highlighted the need for road upgrades to enable access from the mine to nearby port facilities.
The study has identified the RN7 national highway as the preferred transport route to the coastal town of Toliara where existing port infrastructure could potentially be utilised for the project.
Akora is considering an option to incorporate the port into the PFS which could result in potential capital cost savings during Bekisopa’s initial production ramp-up.
Access road construction
Meanwhile, the Madagascan government has confirmed it will finish work on an access road to connect Toliara port to the RN7 during the first half of 2025.
Construction of the road commenced in 2024 and could open the way for the port at Toliara to be evaluated as a viable option for the export of Bekisopa iron ore products.
The work will receive funding support from the Bank of European Investment and is expected to deliver improved road travel from the bypass road at Akora’s Satrokala mine through to Toliara.
Company benefits
Akora managing director Paul Bibby said the company was expected to benefit significantly from the infrastructure works.
“Sections of the national highway are currently in need of repair… we believe upgrading the road will provide a significant boost to the region and assist our project logistics planning,” he said.
“We consider the road improvements to be beneficial to the logistics for delivering iron ore to the port and export customers.”
Safe and efficient transport
Mr Bibby said the road enhancements would support the safe and efficient transport of Bekisopa’s iron ore products from the project site to the proposed port location at Toliara and support the movement of employees and consumables for the project.
The Bekisopa scoping study released in November 2023 listed additional port locations for evaluation as access through Toliara’s congestion was considered impractical.
Share placement
Akora recently confirmed strong market support for a $600,000 share placement to accelerate feasibility work at Bekisopa.
The funds are being used to expedite various activities required to complete key feasibility study items, including work to investigate land accessibility and identification of the optimum route for the proposed Bekisopa-to-Satrokala access road.
The PFS is scheduled for completion in the coming months.