Baobab Resources: Tete Project Update

Baobab (BAO.L) released the updated metallurgical test work results that follow up on the early-stage mass balance modelling for the coarse cobbing material from the Tete pig iron project in Mozambique. The latest results from the reduction and smelting tests demonstrate the ability to produce a low-impurity, typical specification pig iron product using the abundant domestic low-priced thermal coal as a reductive agent.

Ahead of the PFS release, Baobab reported the pyro-metallurgical test work results that build on the preliminary beneficiation tests and mass balance modelling completed in mid-2012 on the material from its 85%-owned Tete pig iron project. The latest results, which are based on the detailed reduction and smelting test work, confirmed the ability to produce a low-impurity pig iron product using the local low-priced thermal coal. The reduction tests, which are aimed at increasing the metallic iron content of the Tete coarse cobbing concentrate before direct charging to an EAF, demonstrated that metallisation in excess of 70% was achieved after 30 minutes’ in the kiln. Subsequently, the reduced iron samples were inductively heated and melted in a furnace to produce a clean pig iron disc.

The chemical analysis of the disc (97% Fe, 1.8% C, 0.2% S, 0.16% P, 0.002% Ti, 0.1% V) suggests that the saleable product is likely to meet a typical pig iron ISO/GOST specification for EAF steelmaking. Importantly, given the low level of titanium, the process is capable of removing the impurities. While the smelting test was non-fluxed, contained sulphur and phosphorus are expected to be removed with the slag in the conventional Submerged Arc Furnace (SAF) process. Similarly, much of the vanadium will be removed and recovered in slag. The SAF product is also expected to have higher carbon of c 3.5%. In all, the positive met test results are a crucial part of the upcoming Tete PFS, which we believe should have positive implications for the project’s valuation.

To Read the Entire Report Please Click on the pdf File Below.