- Genmin (GEN) enters into two non-binding memorandum of understanding deals for iron ore products from its wholly-owned Baniaka iron ore project in central West Africa
- The MoUs were penned with China-based companies, Minmetals and CDSS
- Under the deals, Genmin will sell and deliver three million tonnes per annum (Mtpa) of fines product and one Mtpa of lump product over a three-year term
- The three companies will endeavour to enter into legally binding offtake agreements by June 30 2023
- Genmin has been trading steady at 18 cents
Genmin (GEN) has entered into two non-binding memorandum of understanding (MoU) agreements for iron ore products from its Baniaka iron ore project in central West Africa.
The (MoUs) were penned with China-based companies, Minmetals and CDSS.
Under the MoUs, Genmin will sell and deliver three million tonnes per annum (Mtpa) of fines product, and one Mtpa of lump product. The two parties will each buy 1.5 Mtpa of fines and 0.5Mtpa of lump each from Baniaka over a three-year term.
The three companies will endeavour to enter into legally binding offtake agreements by June 30 2023.
Pricing for iron ore product will be determined by the Platts Iron Ore Index or another agreed price index.
Genmin’s Managing Director and CEO Joe Ariti said the company was very pleased to have quickly signed MoUs for potential offtake from its African development iron ore assets.
“Baniaka has attracted strong interest from Minmetals, a global, vertically integrated tier one state-owned enterprise and CDSS, a specialty, high value steel producer,” said Joe Ariti.
“The first two MoUs provide a point of validation to the recent value-in-use outcomes, and Genmin’s potential to deliver greener, African iron ore supply into Chinese markets.”
Genmin’s flagship project, Baniaka, is at feasibility stage with defined JORC Code compliant mineral resources.
Genmin was trading steady at 18 cents at 3:04 pm AEDT.