G.a.bon: Chinese companies want to buy 16 million tons of iron ore

Creation date: January 12, 2022 11:48

(Ecofin Agency) - China is the biggest consumer of iron ore in the world. While the Middle Kingdom is already G.a.bon's largest manganese customer, the iron ore reserves lying underground in the country are still attracting the attention of major Chinese groups.

The Australian mining junior Genmin Limited, active in iron in G.a.bon, announced on January 12 the conclusion of a non-binding memorandum of understanding with Jianlong Group, considered the second largest private steelmaker in China. The contract, which will run for two years, concerns the annual sale of 2 million tons of iron ore in lumps and fines, from the G.a.bonese Baniaka project.

Genmin Limited

@GenminASX

We are pleased to announce an MoU with Jianlong Group for 2.0 Mtpa of iron ore products from Baniaka. This marks our third MoU in a month (Minmetals, CDSS, and now Jianlong) for a total demand of 16Mt of iron ore products from Baniaka. https://mcusercontent.com/b42ee20663e9edd7887/files/22d75180-2f6e-cccb-a8b5-9bf268cbf260/GEN_02474803.pdf

8:47 am · 12 Jan 2022·Twitter Web App

This new agreement comes on top of the two announced on December 15, again with two Chinese companies, Minmetals Corporation and Changzhou Dongfang Special Steel. This brings to 16 million tons (12 million in pieces and 4 million in fines) the amount of ore that Genmin could potentially sell to China from G.a.bon, in a few years. In addition to the required government approvals, all three transactions are indeed subject to the conclusion of a legally binding agreement, by June 30, 2023.

For now, remember that the Baniaka project is at the pre-feasibility study stage and Genmin expects an open pit mining operation of 5 million tonnes of iron ore per year, with bulk shipments. The annual production capacity of the project should then be increased to 10 million tonnes. However, the company still has work to do to get there, even if the three agreements mentioned above are elements that could encourage potential backers to invest in the construction of the mine.

While the G.a.bonese government is pinning a lot of hope on the revival of the Belinga iron project , it should be noted that Baniaka, and to a lesser extent Bakoumba and Minvoul/Bitam (the other two Genmin projects in the country), also represents a future opportunity to increase G.a.bonese mining revenues.

Emiliano Tossou

https://www.agenceecofin.com/fer/1201-94308-**on-des-compagnies-chinoises-veulent-acheter-16-millions-de-tonnes-de-minerai-de-fer