AKORA Resources (ASX: AKO) has lodged an application with the Bureau du Cadastre Minier de Madagascar and Malagasy Ministry of Mines to convert an exploration licence for the Bekisopa iron ore project to a mining licence.
Granting of a licence is seen as a major step forward in the project’s development pathway that should strengthen investor confidence in the country’s new administration.
AKORA has satisfied all application pre-requisites for Bekisopa, including the completion of a ++pre-feasibility study++ in March that confirmed the potential to upgrade the project’s ore concentrate grade to more than 68% iron at 75 microns, producing greener steel for shipment.
Statutory Development Pathway
Bekisopa’s long-term value starts with a Stage One direct shipping ore (DSO) project and will progress to a generational high-grade iron ore concentrate operation underpinned by an exploration target of between 500 million and 1 billion tonnes.
“Once granted, this submission unlocks the statutory development pathway for our high-margin, low-capital Stage One DSO project that will contribute significantly to the economy of Madagascar,” managing director Peter Bird said.
“It will pave the way to finalising discussions with strategic investors and other financing pathways, enable progress with detailed development planning including a feasibility study and allow us to continue meaningful community engagement to accelerate development.”
New Reformist Leadership
Madagascar’s government has moved quickly to restore stability and advance reforms following a coup last month that saw the appointment of prime minister Herintsalama Rajaonarivelo, under new President Colonel Michael Randrianirina.
New minister of mines and strategic resources Carl Andriamparany has worked to open the administrative pathways for mining development in-country.
This is considered a key pillar for building wealth, infrastructure, and capability for the nation and its people.
The application process for transforming exploration tenements to mining licences had been on hold for some years, stalling new developments across the country.
“Bekisopa remains a project of strategic importance to the nation’s economic growth, and we are fully committed to partnering with the government and the surrounding communities to accelerate development and unlock its full potential,” Mr Bird added.
