Baobab Resources Stand Number: B 4

Baobab Resources is an AIM-listed explorer with a suite of projects in Mozambique. The most advanced is the Tete iron ore, a magnetite-vanadium-titanium deposit  situated immediately north of the huge Tete coal mines which are being developed by majors such as Rio, Vale, Nippon Steel, Jindal and others.

The Tete iron deposit is unique in its proximity to infrastructure and complementary resources presenting the opportunity to not only rapidly proceed to production of a concentrate, but to add significant further value by way of mine-mouth smelting to produce pig-iron on site.

Apart from the abundance of coal, Tete is serviced by cheap, reliable hydro-electric  power from southern Africa’s largest hydro power station. Existing railways link Tete, a major regional centre, to the coast, arterial highways pass by the city and it has an international airport.

Baobab has recently completed a Scoping Study which addresses both the production and smelting scenarios and a pre-feasibility study is due for completion mid-2012.