Turkey’s Tosyali Group has gotten the greenlight from Angola’s president to develop Kassinga mining and steel project. which holds 70 per cent of the company’s capital.
According to media reports, the Angolan President also ordered the public authorities to intervene in the processes of granting licenses for the purposes of streamlining the respective procedures, with a view to the rapid implementation of the project. Further, Coremetal Mining, a company fully owned by the Tosyali group, will be charged with the responsibility of financing and managing the project.
The Angolan participation will consist of the transfer of mining assets, infrastructure, as well as existing equipment that is appropriate for the project, as assessed by an independent expert and accepted by the parties.
The agreement foresees that the investment will be made in four stages. These are divided between the extraction and processing for the production of 4.1m tons of iron concentrate, and the installation of the pelletising plant for the production of the same amount in tons of pellets.
PMSK expects that 2019 will be dedicated to the review of studies and completion of engineering drawings, that the construction of the mine and beneficiation plant will begin by 2020, with its operationalisation in 2020 and 2021, and in the same period the construction and operationalization of pelletising.
The construction of the direct iron reduction plant and the installation of the rolling mill and melt shop should occur between 2020 and 2022. Kassinga iron mining in the municipality of Jamba, Huíla province, about 350 kilometres east of Lubango, dates back to the 1960s but operations were suspended in 1975 after Angola’s independence.