Arrow Minerals (ASX:AMD) has signed a non-binding memorandum of understanding (MoU) with Baosteel Resources to deliver iron ore to steel mill customers.
The potential mine gate sales of iron ore will come from Arrow’s Simandou North Iron Project in West Africa.
As part of the MoU, both companies will meet monthly to progress all key elements of discussions relating to the negotiation and implementation of a binding mine gate sale agreement.
The agreement to be negotiated will include stockpile logistics, product specifications, and pricing.
Arrow Minerals, which has a market capitalisation of $26 million, notes that the MoU is subject to the company’s resource and reserve estimate, completion of studies on the project, project development, and the negotiation and execution of definitive agreements.
Managing Director David Flanagan says delivering multi-user infrastructure will continue attracting global investment, which in turn, promotes the growth of a “world-class mining industry.”
“That will result in globally competitive operations, substantial local employment, and extensive national benefits,” Flanagan says.
“It has taken millions of man-hours, billions of dollars, and thousands of pages of contracts for all the joint venture partners, including BaoWu Group, to develop the Simandou Iron Project, which is due for commissioning in late 2025.
“It is important to recognise the significant role that the Guinea Government has played in ensuring that this infrastructure is delivered as a multi-user facility that has the potential to support numerous industries and provide substantial benefits to Guinea.”
Flanagan notes that blocks one and two, part of Simandou, are directly adjacent to the Simandou North Project — creating real operating synergies due to its close proximity.
“Future mine gate sales will deliver Arrow clear access to markets for our product and optimal alignment with our nearest neighbour,” he says.
“Since commencing field activities at our Simandou North Iron Project in 2023, Arrow has completed 521 holes for a total of 10,309 metres, culminating in an exploration target announcement and the intention to move to resource drilling and scoping studies in 2025.”
Baosteel is a wholly owned subsidiary of the BaoWu Group — it is considered among the world’s “largest” steel producers and one of the lead proponents of the Simandou Project.
Arrow Minerals is focused on discovering and developing multiple economic iron ore and bauxite prospects at its Simandou North and Niagara projects in Guinea, West Africa.
Write to Aaliyah Rogan at Mining.com.au
Images: Arrow Minerals
