Genmin signs long-term hydroelectric power purchase agreement at Baniaka Iron Ore Project

African iron ore explorer and developer Genmin (ASX:GEN) has signed a long-term power purchase agreement with state-owned utility company Société de Patrimoine (SdP) to supply hydroelectric power to the Baniaka Iron Ore Project in the Republic of Gabon.

Under this contract, SdP will supply 30 megawatts (MW) of renewable hydroelectricity from the Grand Poubara Hydropower Station for 20 years. This initial supply term will not begin until certain conditions have been satisfied, including Genmin receiving financing and all necessary permits to develop Baniaka, and operate an overhead transmission line (OHTL).

The company reports it will supply and install a step-down transformer at the Grand Poubara transmission yard, as well as construct, own, and maintain the OHTL between Baniaka and Grand Poubara.

The contract also allows for the reserved capacity to be increased to 50MW from the sixth operating year onwards, subject to the expansion of Baniaka, and flow rates at Grand Poubara. A fixed and variable tariff structure is also in place which has resulted in a projected cost of less than US$0.10 per kilowatt hour.

Commenting on the contract, Genmin Chief Executive Officer (CEO) and Managing Director Joe Ariti says: “The signing with our energy partner, Société de Patrimoine, of a long-term renewable power supply agreement for Baniaka completes another important project development milestone as we target first iron ore production in mid-2024, and it also satisfies one of our key ESG objectives of delivering high-value, greener iron ore products to global markets, promoting reductions in Scope 1 and Scope 3 carbon emissions in iron making.

I would also like to thank the Société de Patrimoine team led by Directeur Général Eddie Lekouka for their cooperative, constructive and engaging approach to the negotiation of the power supply agreement. We look forward to continuing our strong partnership with Société de Patrimoine.”

“We look forward to continuing our strong partnership with Société de Patrimoine”

Genmin reports a memorandum of understanding (MOU) was signed with SdP in April 2022. This MOU set out the framework for the parties to enter into the long-term power supply agreement.

Grand Poubara is located about 35km northeast of Baniaka, and 20km from the city of Franceville on the Ogooué River. The hydroelectric plant first came online in 2013, and it has a total capacity of 200MW. Currently the plant has 2 major transmission lines that supply Franceville, and Compagnie Miniére de l’Ogooué’s metallurgical plant near Moanda.

Genmin is an ASX-listed iron ore exploration and development company with a pipeline of projects in the Republic of Gabon, located in west Central Africa.

The company’s flagship asset is the feasibility stage Baniaka Iron Ore Project which covers 881km-square. The project currently has a global Mineral Resource Estimate (MRE) of 760 million tonnes, which represents only 18% of the interpreted 85km strike extent.

Images: Genmin Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.