Zanaga Iron Ore surges 20% as Congo hydro-power agreement signed

Shares in Zanaga Iron Ore Company (LSE: ZIOC) jumped over 20% on Thursday morning after the firm revealed it has penned a landmark clean energy agreement with China Machinery Engineering Corp.

The iron ore explorer, focused on the Republic of Congo, signed a memorandum of understanding with CMEC to advance engineering and funding plans for new hydroelectric facilities close to Zanaga’s namesake project.

Zanaga said CMEC will now complete further inspections and studies on the proposed hydro sites near Zanaga before drafting proposals on how the dams will be financed between Congo’s government and third parties.

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The AIM-listed miner also updated investors that a feasibility study with an unnamed Chinese partner is progressing well and has already identified chances to reduce costs versus previous plans.

Zanaga shares have now doubled in 2023 as excitement builds around the project.