Genmin (ASX:GEN) has signed a binding memorandum of understanding (MoU) with Sinohydro Corporation regarding the development of the Baniaka Iron Ore Project in west Central Africa.
Sinohydro is a major subsidiary and international business unit of Power Construction Corporation of China.
Power Construction is an integrated construction group that provides investment and financing, planning design, engineering construction, equipment manufacturing and operation management for clean and low-carbon energy, water resources, environmental construction and infrastructure.
As part of the MoU, Sinohydro will provide assistance to Genmin in order to procure funding from financing institutions, investors, and iron ore buyers for no less than US$250 million ($395.6 million).
Genmin will share information with Sinohydro to assist in preparing a technical and commercial proposal for constructing Baniaka, including a proposal for a contract for engineering, procurement and construction (EPC) of a mine and infrastructure at the project.
The company will also share information for a separate proposal for mining and exploration services at Baniaka.
Subject to receiving a proposal and EPC contract, both companies will negotiate and execute a legally binding agreement.
Genmin CEO Andrew Taplin says Sinohydro has a demonstrated track record in Gabon having built the Grand Poubara hydroelectricity power facility near Baniaka.
“Sinohydro provides the opportunity for Genmin to rapidly advance critical path construction activities at Baniaka thereby minimising the timeframe to bring high-grade, green iron ore to market,” Taplin says.
Sinohydro has been operating in Gabon, west Central Africa, for more than 10 years and is currently working on various government infrastructure projects, as well as the design and construction of the 35 megawatt Kinguélé Aval hydropower plant.
Genmin is an emerging African iron ore producer with a pipeline of projects in the Republic of Gabon, west Central Africa.
Write to Aaliyah Rogan at Mining.com.au
Images: Genmin
