Genmin (ASX:GEN) has signed a long-term 15-year integrated rail and port services agreement with Owendo Mineral Port (OMP) for its flagship Baniaka Iron Ore Project, located in the Republic of Gabon, west Central Africa.
The emerging African iron ore producer reports the agreement is for an integrated mine to ocean-going vessel transport solution on a send or pay basis for a guaranteed 5 million tonnes per annum with provision to scale volume to 15Mtpa over the 15-year term.
OMP will provide the required rail assets and rail haulage, train unloading and stockpile management at the port, stockpile reclaim and loading of Cape class bulk carriers.
Speaking from Gabon’s capital Libreville after signing the Agreement, Managing Director and Chief Executive Officer Joe Ariti says: “Partnering with highly credentialed OMP to provide a bulk export solution for Baniaka de-risks the logistics chain for delivery of product to market through their significant rail and port knowhow and African experience base, and minimises the initial capital investment for building Baniaka”.
The signing of the agreement also delivers another major project development milestone, as we remain firmly focused on commencing production at Baniaka in mid-2024. With both the renewable hydropower supply, and rail and port agreements signed in recent weeks, our next project level priority is the submission and approval of the mining permit application, which is supported by 46,000m of drilling, a feasibility study, and an extensive social and environmental impact assessment based on nearly five years of environmental data collection.
“The signing of the agreement also delivers another major project development milestone, as we remain firmly focused on commencing production at Baniaka in mid-2024”
We are targeting the mining permit being issued in mid to late June quarter.”
OMP is owned by Arise Ports & Logistics, which is a partnership between AP Moller Capital, Olam International, Africa Finance Corporation, and French investment fund Meridiam, a leading specialist in sustainable infrastructure projects.
OMP built and operates the mineral port, which is located 15km south of Libreville at the start of the Trans-Gabon railway (TGR), and currently undertakes port and/or rail services to a range of manganese customers.
In addition to the port and associated infrastructure, it owns and operates an expanding rail fleet currently comprising 43 locomotives and 1,406 wagons.
Genmin is an ASX-listed African iron ore exploration and development company with a pipeline of projects in the Republic of Gabon, west Central Africa. The Company has a 100% interest in 3 projects comprising 6 granted exploration licences covering about 5,064km-square.
The company’s Baniaka and Bakoumba projects are located in south-east Gabon near the provincial city of Franceville, where it has an extensive footprint and controls all acreage prospective for iron ore. The Baniaka and Bakoumba projects represent a potential iron ore hub with 2,445km-square of landholding and 121km of iron mineralised strike with only 13% drill tested with diamond drilling.
Genmin’s flagship project, Baniaka, is at feasibility stage with defined JORC Code (2012 Edition) compliant Mineral Resources and Ore Reserves, and is favourably situated adjacent to existing and operating bulk commodity transport and renewable energy infrastructure.