Bekisopa Project Advances Amid Infrastructure Challenges and Permitting Hurdles

Bekisopa Project Overview

AKORA Resources Limited (ASX: AKO) has released a comprehensive update on its flagship Bekisopa iron ore project in Madagascar, following the completion of a Pre-Feasibility Study (PFS). The study confirms the viability of a 2 million tonnes per annum (Mtpa) direct shipping ore (DSO) operation, producing high-grade iron ore averaging 61.6% Fe. This ore is targeted at both traditional blast furnace-basic oxygen furnace (BF-BOF) steelmakers and the emerging direct reduced iron-electric arc furnace (DRI-EAF) sector, supporting global steel decarbonisation efforts.

The PFS highlights robust financial metrics, including a pre-tax net present value (NPV10) of US$147 million, an internal rate of return (IRR) of 86%, and low cash operating costs (C1) of US$42 per tonne. Capital expenditure is estimated at US$60.6 million with a rapid payback period of 1.8 years, underpinning the project's economic attractiveness.

Ore Reserves and Mining Plan

AKORA has declared a maiden Probable Ore Reserve of 9.1 million tonnes with a strip ratio of 0.52, supporting an initial six-year mine life. The mining plan focuses on shallow open-pit extraction of weathered zone iron ore, employing simple, contract-based mining methods with mobile equipment. Production is scheduled to ramp up progressively to the design capacity of 2Mtpa, delivering a blend of lump (40%) and fines (60%) products to the market.

Importantly, the project’s ore quality and mineralisation characteristics allow for a staged development approach. Stage 1 focuses on DSO production, while Stage 2 contemplates upgrading ore to a +67% Fe concentrate suitable for DRI-EAF steelmakers, which require higher-grade feedstock to reduce carbon emissions.

Logistics and Infrastructure

Logistics planning is well advanced, with ore to be transported by road from the Bekisopa mine site to the port of Toliara, approximately 420km away. The haul route includes a combination of new and upgraded roads, with construction staged to minimize capital expenditure and facilitate production ramp-up. AKORA is partnering with local contractors and leveraging public-private partnerships to ensure timely completion of infrastructure, including a bypass road financed by the World Bank, scheduled for completion by mid-2026.

Government support is a key enabler, with the Malagasy Ministry of Mines endorsing the project as one of national significance. AKORA is actively working with authorities to secure mining permits and finalize environmental and social impact assessments, aiming for a Final Investment Decision in the second half of 2027.

Corporate and Financial Position

During the quarter ended 31 March 2025, AKORA completed a $1.118 million placement at $0.10 per share to accelerate PFS activities and strategic initiatives. The company ended the quarter with approximately $0.79 million in cash reserves. No production or development activities occurred during the period, consistent with the project’s development stage.

Looking ahead, AKORA plans to raise an additional $200,000 from directors pending shareholder approval at the upcoming Annual General Meeting. The company continues to engage with potential strategic partners to refine logistics and capital arrangements, aiming to unlock the full value of its high-grade iron ore portfolio in Madagascar.

Exploration and Growth Potential

Beyond Bekisopa, AKORA holds 100% ownership of several iron ore projects in Madagascar, including the emerging Satrokala project, which has shown promising magnetic anomalies and low-grade mineralisation in maiden drilling. While the company’s focus remains on advancing Bekisopa, ongoing exploration and resource definition work could support future expansions or new development stages.

The company’s technical disclosures are supported by independent competent persons and consulting groups, ensuring compliance with JORC Code standards and providing confidence in the reported resource and reserve estimates.