Akora Resources welcomes implementation of new Madagascan Mining Code procedures

Akora Resources (ASX: AKO) says the government’s implementation procedures for the revised Madagascan Mining Code demonstrate the country’s renewed commitment to exploration and mining, including the company’s Bekisopa iron project.

Chief executive officer Paul Bibby was provided with clarification on the status of the implementation procedures last week during a meeting with Malagasy mines minister Dr Olivier Rakotomalala.

Akora received an official letter from the mines minister after the meeting.

‘Constructive meeting’

“Our meeting was very constructive and provided an opportunity to update Dr Rakotomalala on all aspects of our Bekisopa iron ore project including the pre-feasibility study, which is due for release before the end of March,” Mr Bibby said.

“Pleasingly, I learned that the revised Mining Code’s implementation procedures have been decreed, which will provide an even stronger framework for mining projects in Madagascar

The revised procedures cover the current tenement renewal process.

Bekisopa alignment

Mr Bibby also received support for the Bekisopa project from the ports and maritime ministry and the ministry of public works (roads).

Both departments reiterated that Bekisopa aligns with Madagascar’s infrastructure plans and logistics future.

Akora has also conducted meetings with established local mining contractors and now plans to hold further discussions with the mines minister to progress the Bekisopa project’s memorandum of understanding.

Direct reduced iron technology

The initial Bekisopa development is aimed at taking advantage of direct reduced iron-electric arc furnace technology, which is used to make greener steel without coal and with considerably lower carbon emissions.

The first stage of development at Bekisopa is currently being assessed to produce up to 2 million tonnes per annum of average 60%-iron grade direct shipping ore over the first five years for shipping to blast furnace-basic oxygen furnace steelmakers.

That initial development will then provide the cash flow to allow Akora to fund its multi-stage mining plans in Madagascar, where it has four high-grade iron ore projects.