Genmin Reduces Baniaka Iron Ore Mining Risks with Power Supply Agreement for Renewable Hydropower

Genmin noted that the price of the electricity supply agreement will be less than US 10c per kilowatt hour, reflecting the lower cost of hydroelectricity.

The Baniaka iron ore operation proposed by Genmin (ASX:GEN) in the Gabonese Republic, West Africa, has been further reduced after the company revealed it had secured 20 years of renewable hydropower for exploitation.

A memorandum of understanding was signed with the Gabonese public institution Société de Patrimoine du Service Public de l’Eau Potable, de l’Energie Electrique et de l’Assainissement for the supply of 30 megawatts of renewable hydroelectricity from the Grand Poubara hydroelectric power station.

Electricity will be supplied for up to 20 years, Genmin noting that the price reflects the generally lower cost of hydropower generation at less than US 10c per kilowatt hour.

Under the current memorandum of understanding, 30 MW of power is guaranteed by Poubara, with the agreement also providing for an increase to 50 MW.

Genmin will build, own and operate a dedicated transmission line from Poubara to Baniaka, 30 km away.

Genmin Managing Director and CEO Joe Ariti said the company was committed from the outset to purchasing clean renewable energy from Poubara for Baniaka.

“Our vision is to become Gabon’s leading iron ore producer and, in doing so, deliver high-quality, greener iron ore products to global markets – driving the reduction of Scope 1 carbon emissions and of range 3 in ironmaking.”

Advancing Baniaka

Located in the southeast of Gabon, Baniaka extends over 881 square kilometers and is Genmin’s flagship project.

The project hosts 12 major prospects of varying maturity and a pre-feasibility study is underway. The study assesses the economics of developing a bulk surface mining operation in Baniaka to produce 5 million tonnes per annum of iron ore products. The study will also evaluate the extension to 10Mtpa.

In January this year, Genmin disclosed that a third non-binding offtake memorandum of understanding had been signed for Baniaka ore.

China’s second-largest private steelmaker, Jianlong, has agreed to buy 1.5 Mtpa of fines from the project and an additional 500,000 tpa of lumps.

This memorandum of understanding is for a period of two years.

In total, the three MoU offtake agreements represent 6Mtpa of iron ore from Baniaka over two to three years.

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