Kogi completes Environmental and Social Impact Assessment
Perth, Jan 7, 2014 AEST (ABN Newswire) - Australian based iron ore development company, Kogi Iron Limited (
ASX:KFE) ("Kogi", "Kogi Iron", or the "Company") and it's 100% owned Nigerian operating company, KCM Mining Limited ("KCM"), are pleased to report that the Environmental and Social Impact Assessment ("ESIA") for its 100% owned Agbaja Iron Ore Project ("Agbaja" or "Agbaja Project") has been completed on schedule.
The ESIA work was conducted by Greenwater Environmental Services Limited ("Greenwater") and commenced in January 2013. As previously advised, the ESIA is a key component of the Company's Preliminary Feasibility Study ("PFS") evaluating the technical and economic viability of a 5 million tonne per annum iron ore operation at Agbaja.
The ESIA concluded that there are no environmental or social impediments for the development of the Agbaja Project.
In terms of environmental impact, the ESIA reported that the areas directly affected by Kogi Iron's proposed mining and processing activities are predominantly low value scrub land and savannah woodland intercepted by grasslands, all of which have limited agricultural use or environmental significance. There were no rare or endangered species of flora or fauna identified in the proposed mine and operational areas, and furthermore the ESIA stated that anticipated environmental impacts from planned mining, processing and associated activities can be mitigated and managed via the requisite Environmental Management Plan, submitted as part of the ESIA.
The overall assessment of the potential and associated social impacts of the Agbaja Project was positive. The ESIA gauged that the project would positively impact the local stakeholder economy and the Local Government area and communities of the Agbaja plateau generally, with similar positive impacts on Kogi State and Nigeria. The proposed mine development will contribute to socio-economic development within the host communities and result in economic empowerment for the indigenes and residents of the Agbaja plateau, predominantly by way of direct and indirect employment opportunities (including contract opportunities during the construction and operational phases of the proposed mine).
Assessing the Agbaja Project in a national development context, the ESIA stated: "Nigeria is richly endowed in human and natural resources and has great potential for rapid socio-economic development. The national ambition to become one of the top 20 economies in the world by the year 2020 is not misplaced and the ambition can be realised if close attention is paid to the diversification of the nation's economy by significantly increasing non-oil contribution to GDP and matching economic growth with the empowerment of the people and social welfare".
"In the Vision 2020 blueprint for the development of the Nigerian minerals and metals sector, the path towards the transformation of the sector is clearly outlined and the strategy is anchored on attracting and encouraging exploration companies with the aim of achieving detailed resource evaluation of all prospective mineral deposits in Nigeria in a timely manner."
Beneficial Impacts (from the Agbaja Project):
- Creation of jobs and job opportunities for locals during site preparation, construction and installation and operational phases;
- Improvement in the socio-economic standing of the host communities;
- Increment in income of the local populace;
- Accommodation of an increase in the availability of iron ore for local and international market;
- Stimulation of local economy resulting in economic empowerment;
- Acquisition of job skills by host communities.
The Company will now submit the ESIA to the Federal Ministry of Environment in January 2014, where there will be a mandatory 21 working day public exposure period, followed by a panel review of the ESIA conducted by the Nigerian Federal Ministry of Environment and Mines Environmental Compliance Department. Approval of the ESIA is anticipated at the completion of this process.
About Macro Metals Limited
Macro Metals Limited is an ASX-listed company (ASX:M4M) with the intent to build a cast steel plant on the Agbaja Plateau in Kogi State, Nigeria. The project will utilise company leased iron ore deposits and will supply a cast steel feedstock to steel manufacturing and product fabricators in Nigeria and overseas.
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