The Age reported today that Rio Tinto (NYSE:RIO) may not be the only player in town in terms of iron ore in Africa, as Tawana Resources (ASX:TAW) has a significant iron ore project in Liberia. The small cap miner has discovered a zone of small iron ore deposits within favourable proximity to a shipping port in the country, according to the Age.
As quoted in the publication:
The scoping study for the project is due out in a month and the cash costs should be in the region of $50 a tonne, which compares to Fortescue’s cash costs of about $40 a tonne. The difference is the capital costs. In Fortescue’s case they would easily run in the billions, while in Tawana’s case it will be more likely in the tens of millions. Stage one production won’t be for another two years, and will be 2 to 3 million tonnes a year. It’s still small, but stage two should be about 5 million tonnes. This is minute in comparison to the scale of Simandou, but Tawana’s project doesn’t need nearly as much capital. Raising any amount of capital is challenge for the Tawana minnow, but it’s got its foot on something the world wants – iron ore with an iron content of over 65 per cent.