Emerging African iron-ore producer Genmin has announced that a large-scale 20-year mining permit has been issued for its 100%-owned Baniaka iron-ore project in Gabon.
The mining permit was issued through a Presidential decree signed by transitional Gabon President Brice Clotaire Oligui Nguema. Mines Minister HerveĢ Patrick Opiangah presented the decree to the company in Libreville on Monday.
Genmin MD and CEO Joe Ariti and France-based nonexecutive director Pietro Amico attended the ceremony and received the Presidential decree.
Genmin applied last year for the large-scale Baniaka mining permit, for an initial term of 20 years for a starter five-million-tonne-a-year mining operation.
The company submitted an extensive mineral production agreement inclusive of supporting techno-economic studies informed by about 47 000 m of drilling and a comprehensive social and environmental impact assessment (SEIA).
Ministerial approval of the SEIA was provided through a Certificate of Environmental Conformance in August last year, while the receipt of the mining permit provides regulatory approval for Genmin to develop and operate the Baniaka project.
“It enables us to set a target date for the commencement of production of the end of quarter two 2025, and in the next six months to finalise project build funding against a backdrop of a new government in Gabon actively promoting, and streamlining timeframes for, new economic development, and a strong iron-ore price environment that has traded in the range of $105/t to $144/t over the past six months and averaged $136/t over the past 45 days,” Ariti said.
He commended the work done by Genmin’s partners WSP-Golder South Africa, which acted as a global sustainability consultant, as well as the work done by local social and environmental consultant Terea.
“Without their respective efforts and expertise in navigating the SEIA process, this timely outcome in delivering the mining permit would not have been possible,” Ariti said.
With the receipt of the mining permit, Genmin will now focus in the short term on completing a proposed capital raising to provide general working capital and returning the company’s shares to trading on the ASX as soon as possible. The company will also focus on progressing and finalising discussions with potential project build financiers over the next two quarters.