The MoU is valid for three years but may be terminated early under specific conditions.
The MoU establishes key terms, including information sharing for technical and commercial proposals, an exclusivity period for Sinohydro to negotiate an EPC contract, and support in obtaining at least $250 million for Baniaka’s development. The agreement spans three years but can be terminated earlier under conditions such as legal restrictions, permit expirations, insolvency, or if Genmin rejects the proposal.
“We are extremely pleased to have signed a binding memorandum of understanding with Sinohydro, who has a demonstrated track record in Gabon having built the Grand Poubara hydroelectricity power facility near Baniaka, as well as extensive construction experience in power and transport infrastructure,” said Genmin CEO Andrew Taplin. “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.”
The Baniaka project has obtained essential regulatory approvals, including a 20-year large-scale mining permit, a Certificate of Environmental Conformance, and a signed Mining Convention with the Gabonese Government. These milestones pave the way for Gabon’s first commercial iron ore mine.
Genmin plans to initiate production at Baniaka with a capacity of five million tonnes per annum (mtpa), with intentions to scale up to at least 10 mtpa. Commercial production is targeted for late 2026, with securing project financing as the next critical step. Discussions with potential funding partners are ongoing.
Additionally, Genmin holds exploration tenements at its Bitam project in north-west Gabon, near Oyem, which show potential for polymetallic mineralization. The company’s efforts focus on advancing sustainable mining operations to meet global demand for high-grade iron ore.
