2023-08-12 15:08:00
(Ecofin Agency) – The sales agreement with Genmin is in addition to 2 others signed on December 15, 2021 and January 12, 2022, respectively with China Minmetals Corporation (Minmetals) and Jianlong Group (Jianlong).
The Australian iron ore exploration and development company Genmin has announced the conclusion with the Chinese Hunan Valin Steel Co. Ltd (Hunan Valin), of a binding memorandum of understanding to sell it part of its future production of iron ore in Baniaka, in the south-east of Gabon.
In a communiqué published yesterday Friday, Genmin specifies that the agreement was concluded with Valin Hongkong International Trade Co. Limited, a subsidiary of Hunan Valin, one of the main Chinese steelmakers, ranked among the world’s top 15 producers of crude steel with a production of 26.4 million tons in 2022. According to the 2-year agreement, the annual delivery volume should be 2.4 million tons of iron ore per year, i.e. a total of 4.8 t .
« With the signing of this memorandum of understanding, Genmin now has a sales potential of approximately 15 million tonnes of Baniaka green iron ore products to balance once morest its production profile of 5 million tonnes per year, which which nominally provides sales coverage for the first three years of operationsaid CEO Joe Ariti.
« We are privileged to have signed this Memorandum of Understanding with Hunan Valin, a large balance sheet group that has demonstrated long-term loyalty through the purchase of iron ore from Fortescue Metals Group (FMG, Ed. ). We look forward to developing an equally strong and long-term relationship with Hunan Valin.” he added. In February 2009, report The New GabonHunan Valin Steel has indeed signed a memorandum of understanding with the Australian mining giant FMG for the purchase of high quality iron ore from the Belinga project in Gabon.
Genmin plans an initial export operation of 5 million tons of iron ore lumps, fines and pellets per year, with the possibility of increasing this volume to 10 million tons per year. On August 2, 2023, it declared having received environmental approval for its Baniaka deposit project and is now waiting to receive the mining permit.
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