Genmin (ASX:GEN) gets 20 years for African iron ore projectJanuary 9, 2024
Genmin has been granted a 20-year mining permit to begin large scale iron ore production at its Baniaka iron ore prolarge-scaleon, West Central Africa.
The Baniaka iron ore project is expected to contribute significantly to the growth and development of Gabon’s mining industry and the country’s economy as a whole.
Gabon’s Head of State has granted regulatory approval to build and operate a $200M 760Mt iron ore operation at Baniaka, which is a low-risk truck and shovel open pit mining project with a focus on ESG.
The project has positive economics with an average cash cost of $59/dmt inclusive of all costs.
Genmin CEO Joe Ariti says the mining permit and environmental approval demonstrate his Company’s commitment to responsible and sustainable mining practices in Gabon.
“Today is a momentous occasion for Genmin with the Minister of Mines presenting us with the signed Presidential Decree authorising the production of iron ore from Baniaka for an initial term of 20 years,” Mr Ariti said.
“It enables us to set a target date for the commencement of production of the end of Q2-2025, and in the next 6 months to finalise project build funding against a backdrop of a new government in Gabon actively promoting, and streamlining timeframes for new economic development, and a strong iron ore price environment that has traded in the range of US$105 to US$144 per tonne over the past six months and averaged US$136 per tonne over the past 45 days”
The Company is proposing capital raising to provide general working capital and returning the Company’s shares to trading on the ASX (subject to satisfying any conditions imposed by ASX) as soon as possible, and progressing and finalising discussions with the potential project-build financiers over the next two quarters.
Nmin Limited, also known as Genmin or the Company, is a rising iron ore producer with a focus on sustainability. The company is listed on the ASX and is at the forefront of iron ore mining in the Republic of Gabon, located in West Central Africa. Genmin has complete ownership of three projects, which include six exploration licenses covering an area of approximately 5,064km².
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