east coast of Madagascar<\/a>. The company conducted rock chip sampling and a seven-hole drilling programme at Tratramarina in 2009-2012, returning solid results.<\/p>\nManagement views the project as a priority exploration target with excellent potential for upgradable magnetite iron ore grading 25-35% Fe.<\/p>\n
Madagascar\u2019s geographical advantages<\/h3>\n
Shipping routes to the growing India and Middle East steel industry are less than half the distance than to China. Shipping to the nearest neighbours will also reduce greenhouse gas emissions.<\/p>\n
The Indian steel market is both large and transitioning towards higher value-added products as the country seeks to reduce its reliance on imports. In 2021, Indian crude steel consumption was 118 MT, representing about 6% of world demand, with plans to increase output to >250 MT by 2030.<\/p>\n
ArcelorMittal Nippon Steel India described India as the \u201cnext frontier of accelerated growth.\u201d The group is expanding the capacity of its Hazira plant in Gujarat from 7.6 MTpa to 15 MTpa, with longer-term ambitions to reach a capacity of 30 MTpa.<\/p>\n
In DRI production, iron oxide is reduced using carbon monoxide and hydrogen, which can be derived from natural gas. Saudi Arabia has significant advantages in the supply of gas.<\/p>\n
In September 2022, Essar Group said it would invest $4bn in a new integrated flat steel works in Saudi Arabia that is expected to come on stream in 2025. The plant will have two DRI plants, each with a capacity of 2.5 MTpa. An obvious destination for AKORA\u2019s high-quality Bekisopa DRI concentrates.<\/p>\n