Chinese state-owned conglomerate Power Construction Corporation of China has completed a review of Genmin’s (ASX:GEN) Baniaka Iron Ore Project in Gabon, Africa, allowing the company to assess proposed engineering and construction works.
The proposal covers key non-process infrastructure, including a 60km private haul road, a 30km overhead power transmission line, and an onsite, workforce accommodation village.
Genmin, which has a market capitalisation of $17.74 million, says the initial assessment of the proposal indicates a potential capital cost reduction compared to the estimates set out in a Prefeasibility Study completed in 2022.
Given the outcome of the review and the proposals received, Genmin is preparing additional project scopes focused on civil engineering works, for cost estimation by Sinohydro.
Based on Genmin’s assessment of Sinohydro’s engineering capability, up to 50% of Baniaka’s project scope could be conducted by Sinohydro.
In April 2025, Genimin signed a binding memorandum of understanding (MoU) with Sinohydro for the development of the Baniaka Project, through the provision of an engineering, procurement, and construction (EPC) proposal, as well as providing assistance in obtaining funding.
PowerChina is also supporting Genmin in securing funding for the project’s development. As part of this strategic partnership, PowerChina has introduced potential Chinese funding partners which are being considered as part of a broader funding plan for Baniaka.
Discussions are ongoing and PowerChina’s validation of Baniaka marks a step toward obtaining a complete funding solution.
The Baniaka Iron Ore Project has a 20-year mining permit to support a starter 5 million tonnes per year scalable operation.
Once developed, the project will involve conventional open pit mining and iron ore processing methods to produce Lump, Fines, and Pellet Feed products.
Write to Aaliyah Rogan at Mining.com.au
Images: Genmin
