Genmin delivers positive PFS for Baniaka iron ore project in Gabon

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Genmin delivers positive PFS for Baniaka iron ore project in Gabon

Genmin has announced delivery of positive pre-feasibility study (PFS) for scalable iron ore mine at Baniaka iron ore project in Gabon.

The Baniaka project comprises the Baniaka and Baniaka West licences over a combined 881 square kilometres, which hosts 85km of iron mineralised strike. A low capital intensity of US$40 per annualised production tonne (A$59/t), was noted in the PFS. This totals to 38% after-tax internal rate of return (IRR) for an initial 10-year mine life.

Baniaka project

Baniaka’s global mineral resource estimate was increased to 760 million tonnes, representing just 18% of the interpreted 85km strike extent. The African explorer and developer  noted 168Mt indicated mineral resources underpinning the PFS, made up of the detrital iron deposit (DID) and soft oxide (SO), represent only 22% of these global resources.

The PFS estimated an initial capital investment of about US$200 million (A$296 million) for a 5Mt-per-annum nameplate capacity and associated infrastructure, including full ownership of a strategic and dedicated power transmission line from Grand Poubara and a rail loadout facility connected to the Trans-Gabon Railway near Franceville. The study further showed the potential for the operation to upscale beyond the 5Mtpa nameplate capacity to 10Mtpa.

“With a modest initial capital investment, and operating hydroelectricity, rail and port infrastructure, this initial phase of monetising the province-scale Baniaka asset is highly feasible. To this end, we will be supporting Anglo American in finalising its due diligence and negotiating documentation in respect of debt financing and offtake, completing the social and environmental impact assessment by the end of the year, and lodging a large-scale mining permit application. Concurrently, we also plan to complete several pre-development work streams like the detailed design and engineering of the processing facility that is already underway,” said Genmin managing director and chief executive officer Joe Ariti.

 

 

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