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    4 March, 2013
Baobab shows it can produce pig iron
London, 4 Mar (AIM) - The British company Baobab Resources on Monday confirmed that it is able to produce low impurity pig iron using iron ore reserves at its Tenge/Ruoni deposit in the western Mozambican province of Tete plus locally mined thermal coal.

The company has released the results of a pyro-metallurgical test carried out by the independent Commonwealth Scientific and Industrial Research Organisation (CSIRO) laboratories in Australia.

According to Baobab, the simulation has “returned very promising results with an excess of 70 per cent metallisation being achieved after a short residence time using locally sourced thermal coal as a reductive agent”.

Baobab’s Managing Director Ben James stated “the results of the pyro-metallurgical test work mark a major milestone for the project. Two critical questions have been answered: will local thermal coals work in the reduction process and will the titanium separate from the iron when smelted? In both cases the answer is a resounding yes. We now possess very clear physical and empirical evidence to support the Company’s conviction that we can exploit the project’s unique access to low cost thermal coal at the licence boundary together with Baobab’s iron ore to produce a high quality / low impurity pig iron at the bottom of the cost curve”.

The company expects to be able to extract titanium and vanadium from the deposit using the smelting process as the starting point. Both of these metals are highly valuable.

Baobab is planning to build one of the world’s largest pig iron smelters, and is looking at a range of production scenarios of up to four million tonnes per annum (the world’s single largest pig iron operation produces 2.5 million tonnes per annum).

Analysis of the prospect has shown that over half a billion tonnes of iron ore is located in an area covering just 2.5 square kilometres.

The Tete pig iron, vanadium and titanium project is 85 per cent owned by Baobab, with a 15 per cent share held by the International Finance Corporation (IFC), the member of the World Bank Group that focuses on the private sector in developing countries.

Pig iron is an intermediate product mainly used in the production of steel.
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