Regulatory Reform Milestone: AKORA Advances Bekisopa Amid Madagascar Mining Code Changes

Regulatory Milestone in Madagascar’s Mining Sector

AKORA Resources Limited (ASX: AKO) has achieved a significant regulatory milestone with the renewal of its main exploration tenement PR10430 at the Bekisopa Iron Ore Project in Madagascar. This renewal is the first to be granted under Madagascar’s updated Mining Code and associated Mining Implementation Procedures, a reform process supported by the World Bank aimed at revitalising the country’s exploration and mining industry.

The renewed tenement PR10430 is critical to AKORA’s development plans as it contains the company’s JORC-compliant Resources and Reserves that underpin the recently announced Pre-Feasibility Study (PFS) for a 2 million tonnes per annum (Mtpa) high-grade direct shipping ore (DSO) operation. The PFS delivered robust economics, including a pre-tax Net Present Value (NPV10) of US$147 million (A$233 million) and an Internal Rate of Return (IRR) of 86%, highlighting the project’s strong financial potential.

Strategic Implications for AKORA and Madagascar

AKORA’s Managing Director and CEO, Paul Bibby, expressed confidence in the tenement renewal process, noting that the updated Mining Code and Implementation Procedures represent a significant step forward for the Madagascan government’s commitment to expanding exploration and mining activities. The renewal of PR10430 not only secures AKORA’s flagship project tenure but also positions the company to submit an application to transform the exploration tenement into a Mining Permit, a necessary step towards commencing production.

Beyond AKORA’s immediate interests, this renewal signals a broader positive shift in Madagascar’s mining regulatory environment, which had been on hold pending the update of the Mining Code. The government’s ability to process the first batch of 100 tenements under the new framework demonstrates progress in regulatory clarity and operational certainty, factors that are likely to attract further investment into the country’s mineral sector.

Project Outlook and Next Steps

The Bekisopa Project boasts a substantial Inferred JORC Resource of 194.7 million tonnes of high-grade iron ore with low impurities, suitable for premium-priced direct shipping ore markets. The company plans to advance the project towards near-term production, targeting a six-year mine life producing iron ore with an average lump and fine shipping grade of 61.6% Fe.

Following the tenement renewal, AKORA intends to complete the necessary work to support the transformation of PR10430 into an Exploitation (Mining) Permit. Concurrently, the company will continue discussions with the Madagascan Mines Ministry to advance project approvals and submit renewal applications for its other tenements, including PRE3757, expected later this year.

All AKORA tenements remain in good standing and financially up to date, underscoring the company’s disciplined approach to regulatory compliance and project development.

Broader Market and Environmental Context

AKORA’s Bekisopa iron ore is positioned to meet growing demand for premium-grade, low-impurity ore suitable for electric arc furnace steelmaking, which offers a greener alternative to traditional blast furnace methods. This aligns with global trends towards decarbonisation in steel production, potentially enhancing the project’s market appeal and pricing power.

As AKORA moves forward, the interplay between regulatory progress in Madagascar and the evolving iron ore market dynamics will be critical to watch. The company’s ability to convert exploration success into operational reality will depend on continued government support and timely permit approvals.