(Ecofin Agency) - Glencore has long been involved in the Zanaga iron ore project in the Republic of Congo, which holds billions of tonnes of reserves. In 2022, Glencore converted its interests in the project into shares of Zanaga Iron Ore Company (ZIOC). ZIOC has now released a project update.

Zanaga Iron Ore Company (ZIOC) announced on Monday that it ended its agreement with Glencore regarding the Zanaga iron ore project in the Republic of Congo, valued at $5.7 billion. ZIOC is raising funds, with $15 million allocated to repurchase and cancel Glencore's 43% stake in the company. 

#ZIOC is pleased to announce an equity fundraise for gross proceeds of US$21.5 million, with potential to upsize to US$23.0 million, conducted by way of subscriptions to a group of high-profile investors with significant mining industry and project development expertise, and… pic.twitter.com/lc9oZ7SnGK

— Zanaga Iron Ore (@Zanaga_Iron_Ore) March 3, 2025

This move finalizes Glencore’s withdrawal from the project, which began in 2022 when it sold its majority stake in exchange for a 48% holding in ZIOC. Over time, Glencore’s stake has been reduced slightly. ZIOC also confirmed the cancellation of Glencore’s rights to purchase future production from the Zanaga project.

Glencore has not disclosed its reasons for exiting the Zanaga iron ore project in the Republic of Congo. The withdrawal coincides with new investors joining Zanaga Iron Ore Company (ZIOC). Among them are Greymont Bay, a consortium of mining investors, and Gagan Gupta, founder and CEO of Arise. Arise is developing several special economic zones across Africa, including one in Pointe-Noire, Congo.

In 2022, Zanaga Iron Ore Company (ZIOC) highlighted Glencore's investment as a key factor in reassuring investors and financiers about the project's viability, backed by one of the world’s largest iron ore traders. The Zanaga project requires an initial $2.2 billion investment to produce 12 million tonnes of iron ore annually in the first phase. With an additional $2.5 billion investment, the project could expand production to 30 million tonnes per year, according to a 2014 feasibility study.

This article was initially published in French by Emiliano Tossou

Edited in English by Jason Ange Quenum