The lease is valid for a period of 25 years, and is renewable, Kogi told shareholders on Friday.
Kogi in March this year was granted an initial two mining licenses for its Agbaja iron-ore and steel project.
Through a statement, the company said “final documentation has been received from the Federal Republic of Nigeria, Ministry of Mines and Steel Development, granting a mining lease to KCM Mining Limited.
Previously completed prefeasibility studies have estimated that a five-million-tonne-a-year operation could be developed at Agbaja, with capital expenditure estimated at around $497-million.
The Minister of State for Mines and Steel Development, Abubakar Bawa Bwari noted earlier that the coming of President Muhammadu Buhari’s administration has opened up the sector tremendously.
The project is expected to have an average operating cost of some $42.98/t of concentrate, and would likely return earnings before interest, taxes, depreciation and amortisation of $136-million a year.