TerraCom Limited said that its fully-owned subsidiary has signed a memorandum of understanding (MoU) with Bellzone Holding for acquiring the Kalia iron ore project in Ghana.

The exclusive non-binding MoU is contingent on preceding customary conditions, which include due diligence, regulatory approvals, and others.

The Kalia iron ore project is located in the Faranah prefecture.

It is made up of an ore body targeting 4.7 billion tonnes of magnetite banded iron formation, 900 million tonnes oxide and supergene banded iron formation targeting ferronickel, and a 20km long magnetite strike, which outlines the development resource potential of up to eight billion tonnes of magnetite banded iron formation.

According to TerraCom Limited, the Kalia iron ore project is in a unique position due to its location, nearly 300km from the Konta Port. The proximity to the port gives the iron ore mine in Ghana the flexibility to choose road as well as rail options as part of its supply chain route to the export market, said the Australian resource company.

TerraCom Limited said that its initial focus will be to restart production as fast as possible, targeting domestic users of iron ore. Parallelly, the company will also study the most economic means to boost production to meet the increasing global demand.

Craig Ransley — TerraCom Limited Executive Chairman, commenting on the Kalia iron ore project, said: “Whilst we are in the early days of the due diligence process, the Company is excited to be working towards an acquisition within one of the world’s leading countries, in terms of iron ore and bauxite resources available for exploitation.

“The Company looks forward to working with all stakeholders on accelerating the satisfaction of the conditions precedent under the MOU, and then working to recommence operations as soon as possible.

“This opportunity further cements the Company’s business diversification strategy to become a global bulk commodities producer.”

  Bellzone Holding, Craig Ransley, Faranah, Ghana, iron ore, Kalia project, TerraCom Limited