MRG Metals progresses discussions for Chongoene Development Corridor

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MRG Metals progresses discussions for Chongoene Development Corridor

3:35 CAT | 10 Aug 2020

It is estimated that Phase-1 of the CDC Development will begin in 2023

MRG Metals (MRQ) is continuing discussions with Moçambique STT Sociedade Anónima (STT) regarding the proposed Chongoene Development Corridor (CDC) Project.

This project is part of the Mozambique Government’s multibillion-dollar initiative to create a new freight and economic development corridor

STT signed an agreement with the government to develop and promote the project

The CDC project comprises a 150 million tonnes per annum deep-water seaport which will be located in the town of Chongoene

The proposed railway track line will run through or adjacent to MRG’s Corridor Central and Corridor South projects

This will be economically beneficial to its mining operations

Phase one of the project is set to begin in 2023 and will cost around US$3.78 billion (roughly A$5.2 billion)

Company shares are currently trading flat at 0.7 cents

MRG Metals (MRQ) continues to progress discussions with Moçambique STT Sociedade Anónima, who’s behind the proposed Chongoene Development Corridor (CDC) Project.

Seven years ago, the Mozambique Government announced its intention to create a new freight and economic development corridor.

Since then, Moçambique STT Sociedade Anónima signed a memorandum of understanding with the government to develop and promote the implementation of the proposed development.

The multibillion-dollar CDC project comprises a 150 million tonnes per annum deep-water seaport which will be located in the town of Chongoene in Mozambique.

The development will also be situated roughly 40 kilometres south of MRG’s Koko Massava prospect and just 10 kilometres from the southern boundary of the Corridor South Tenement.

The Chongoene port will be linked by a railway to the Maputo-Zimbabwe line whilst the proposed track line will run through or adjacent to MRG’s Corridor Central and Corridor South projects.

The close proximity of the Chongoene deep-water seaport project and proposed Mineral Processing Zone, as well as a planned extension of a natural gas pipeline, is set to be economically beneficial to MRG’s potential mining operations.

“Fantastic result for Mozambique”

“An investment of this size in the local infrastructure is a fantastic result for Mozambique,” MRG Metals Chairman Andrew Van Der Zwan said.

“At this stage, it is proposed that the railway component of the CDC development will run through our Corridor Central and Corridor South tenements and as such, STT has invited MRG Metals to provide information as to the impact of the location would have on the company’s projects,” Andrew added.

“We will continue these discussions and look forward to continuing to work with STT on what could be a hugely exciting infrastructure upgrade for the country of Mozambique.”

Phase-1 development to begin in 2023

MRG believes phase one of the CDC project will begin in 2023 at an investment cost of around US$3.78 billion (roughly A$5.2 billion).

Phase one construction will include a two-berth jetty at the Chongoene port, 221-kilometre rail line from Chongoene to Macaratane, and improvements to the existing 310-kilometre CFM Line which is located on the Mozambique-Zimbabwe border.

This provides a link into the national railways of the Zimbabwe line which, in turn, links directly into Botswana, South Africa and Zambia. This ensures there’s a rail link from Chongoene to six countries including the Democratic Republic of Congo and Angola.

Company shares are trading flat at 0.7 cents each just after midday trade.

By Jessica De Freitas

Source: The Market Herald Australia