PERTH (miningweekly.com) – Africa-focused iron-ore developer Gemin has inked a non-binding memorandum of understanding (MoU) with China’s second-largest privately-owned iron and steel enterprise, Jianlong Group, for the offtake of two-million tonnes of iron-ore from the Baniaka project, in the Republic of Gabon.
The MoU with Jianlong marked Gemin’s third non-binding offtake MoU for the Baniaka project, with two more inked in December last year.
“Genmin is excited about partnering with Jianlong, a future-facing, global top 10 crude steel producer. While 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 using on-site hydrogen iron making,” said Genmin MD and CEO Joe Ariti.
“Baniaka ore processing and supporting infrastructure is planned to be powered from the nearby Grand Poubara hydro-electric plant by renewable energy, which is a key component to produce green hydrogen”.
The MoU is non-binding and Jianlong and Genmin will use all reasonable endeavours to enter into a legally binding offtake agreement by the end of June 2023 under which the company will sell and deliver a total of 1.5-million tonnes a year of fines product and 0.5-million tonnes a year of lump product, and Jianlong will buy and take delivery of 1.5-million tonnes a year of fines product and 0.5-million tonnes a year of lump product from Baniaka for a term of two years.