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【Ferro-alloys.com】: Emerging African iron-ore producer Genmin have signed a memorandum of understanding (MoU) with Sinohydro Corporation in relation to the development of Genmin's flagship Baniaka project, in Gabon.

The MoU is aimed at establishing a cooperative and collaborative relationship between Genmin and Sinohydro for the development of the Baniaka project, which is one of three iron-ore projects in Gabon being developed by ASX-listed Genmin.

Under the terms of the MoU, Genmin will share information with Sinohydro to assist it to prepare a technical and commercial proposal for the construction of Baniaka, including a proposal for a contract for the engineering, procurement and construction (EPC) of a mine and infrastructure at Baniaka; and a separate proposal for mining and exploration services at Baniaka.

Genmin will grant Sinohydro a period of exclusivity to be agreed to prepare the proposal for the construction of Baniaka and, subject to receipt of a proposal and EPC Ccntract terms that are acceptable to Genmin, the parties will use reasonable endeavours to negotiate and execute a legally binding EPC contract.

Further, Sinohydro will assist Genmin to procure at least $250-million in funding from financing institutions, investors and iron-ore buyers for the development of the Baniaka project.

“We are extremely pleased to have signed a binding MoU with Sinohydro, which has a demonstrated record in Gabon, having built the Grand Poubara hydroelectricity power facility near Baniaka, as well as extensive construction experience in power and transport infrastructure.

"Sinohydro provides the opportunity for Genmin to rapidly advance critical path construction activities at Baniaka, thereby minimising the timeframe to bring high-grade, green iron-ore to market," Genmin CEO Andrew Taplin says.

Genmin plans to develop Baniaka as a five-million-tonne-a-year operation that may be expanded to eventually produce at least ten-million tonnes a year of iron-ore.

Commercial production is expected to start in late 2026.

• [Editor:Alakay]