PERTH (miningweekly.com) – ASX-listed iron-ore developer Genmin has secured long-term power for its Baniaka project, in Gabon.

The company has signed a 20-year power supply agreement with Gabon State-owned power utility Société de Patrimoine du Service Public de l’Eau Potable, de l’Énergie Électrique et de l’Assainissement (SdP) for the supply of an initial 30 MW, which could be increased to 50 MW to accommodate future expansion at the iron-ore mine.

“The signing with our energy partner SdP, of a long-term renewable power supply agreement for Baniaka completes another important project development milestone as we target first iron-ore production in mid-2024, and it also satisfies one of our key environmental, social and governance objectives of delivering high value, greener iron-ore products to global markets, promoting reductions in Scope 1 and Scope 3 carbon emissions in iron making,” said Genmin MD and CEO Joe Ariti.

The power agreement followed on from a memorandum of understanding inked in April last year.

The 30 MW provided by SdP will provide all Baniaka’s initial electricity requirements and negate the need to fund, construct and maintain an onsite power station. Genmin will build, own and operate a 35 km overhead transmission line from Grand Poubara to ensure a dedicated supply of renewable electricity to Baniaka.

Reserved capacity may be increased from 30 MW to 50 MW from the sixth operating year onwards, subject to an expansion of Baniaka and provided water flow rates at Grand Poubara support such supply.

Genmin is planning an initial five-million-tonne-a-year export operation, scaling to ten-million tonnes a year during Stage 2. The company is planning to produce a mix of lump, fines and pellet feed, and has signed three non-binding memorandums of understanding with Chinese firms for up to 16-million tonnes a year of potential offtake.

First production is targeted for mid-2024.