PERTH (miningweekly.com) – Junior iron-ore developer Genmin has signed a non-binding memorandum of understanding (MoU) with China’s Valin Hongkong International Trade Co, a subsidiary of Hunan Valin Steel Co over the potential offtake of iron-ore products from the Baniaka project, in Gabon.
The MoU would cover 2.4-million tonnes a year of iron-ore products over a two-year term.
“We are privileged to have signed this MoU with Hunan Valin, a group of substantial balance sheet capacity that has shown long-term loyalty through the purchase of iron-ore from Fortescue,” said Genmin MD and CEO Joe Ariti.
“We look forward to developing a similarly strong and long-term relationship with Hunan Valin.
“With the signing of this MoU, Genmin now has potential sales of approximately 15-million tonnes of Baniaka green iron-ore products to be balanced over its production profile of five-million tonnes per annum, which nominally provides sales coverage for the first three years of operations.”
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.
The company recently received environmental approval for its project, and is now awaiting the receipt of a mining permit.