Posted on 14 Aug 2023
Australia-listed African iron ore exploration and development company Genmin Limited (GL) has inked a non-binding offtake agreement with Hunan Valin for 2.4 million tonnes/year of iron ore product from Baniaka, in Gabon, notes Kallanish.
Genmin also extended offtake memoranda of understanding with Minmetals and Jianlong to 31 December 2024.
"Three Memoranda of Understanding have now been signed by Genmin for a potential total offtake of 14.8 million tonnes of ‘Baniaka Green’ Fines, Lump and Pellet Feed products over initial terms of two or three years with 71% of demand for Fines, 24% for Lump, and 5% for Pellet Feed,” Genmin says in a bourse filing.
Genmin chief executive Joe Ariti notes: “We are privileged to have signed this MoU with Hunan Valin, a group of substantial balance sheet capacity that has shown long-term loyalty through the purchase of iron ore from FMG [Fortescue Metals Group]. We look forward to developing a similarly robust, long-term relationship with Hunan Valin.”
“With the signing of this MoU, Genmin now has potential sales of approximately 15 million tonnes of ‘Baniaka Green’ iron ore products to be balanced over its production profile of 5 million tonnes per annum, which nominally provides sales coverage for the first three years of operations,” he adds.
Genmin recently received final social and environmental impact assessment (SEIA) approval from Gabon’s environment ministry for its Baniaka iron ore project, and it has made significant progress on a large-scale mining permit for Baniaka (see Kallanish passim). The global mineral resource estimate for Baniaka has increased to 760mt, representing just 15km of the interpreted 85km strike extent.
Chinese Hunan Valin is a majority state-owned enterprise listed on the Shenzhen Stock Exchange and had 26.4mt of crude steel output in 2022.
Source:Kallanish
