Join our daily newsletter At The Bell to receive exclusive market insights
- Genmin (GEN) is eyeing its third potential offtake deal for the Baniaka Iron Project, under which it would supply iron ore products to China-based Jianlong Group
- The MoU states the delivery of 1.5 million tonnes per annum (Mtpa) of Fines iron product and 0.5Mtpa of Lump iron product to be sent to Jianlong from GEN’s Baniaka Iron Project
- Jianlong ranked at number eight and number five, respectively, in global and Chinese crude steel production
- Genmin now has three MoU’s in place, also with China Minmetals Corporation and Changzhou Dongfang Special Steel
- Shares in Genmin are up 10.42 per cent to $0.26 as of 2:44 pm AEDT
Genmin (GEN) is eyeing its third potential offtake deal for the Baniaka Iron Project in the Republic of Gabon, under which it would supply iron ore products to China-based Jianlong Group.
The two-year, non-binding Memorandum of Understanding (MoU) outlines the delivery of 1.5 million tonnes per annum (Mtpa) of Fines iron product and 0.5 Mtpa of Lump iron product to Jianlong, China’s second-largest privately-owned iron and steel producer.
Jianlong was ranked at number eight and number five, respectively, in global and Chinese crude steel production and, last year, commissioned China’s first hydrogen-fueled iron production line, which uses hydrogen rather than coking coal.
According to today’s announcement, Genmin and Jianlong are aiming to sign a formal deal by June 30, 2023, at which point the price of Genmin’s iron ore product will be based on the Platts Iron Ore Index, or another agreed index.
That said, any such agreement will require the necessary approvals from government authorities, as well as the commencement of mining operations at Baniaka.
“Whilst the initial project execution plan for Baniaka is to mine and export iron ore, we look forward to potentially exploring future commercial possibilities with Jianlong to decarbonise the steel making value chain by utilising on-site hydrogen iron making,” CEO Joe Ariti said.
“Baniaka ore processing and supporting infrastructure is planned to be powered from the nearby Grand Poubara hydroelectric plant by renewable energy, which is a key component to produce green hydrogen.”
Genmin now has three offtake MoU’s in place for Baniaka. They include the one with Jianlong, plus one with China Minmetals Corporation and another with Changzhou Dongfang Special Steel, and collectively represent 16 Mtpa of iron ore products.
Shares in Genmin are up 10.42 per cent to $0.26 as of 2:44 pm AEDT.
