African iron ore producer Genmin has signed a binding memorandum of understanding (MoU) with Sinohydro for the development of its wholly-owned Baniaka iron ore project in Gabon.

The agreement facilitates the project’s advancement through engineering, procurement, and construction (EPC) proposals and funding procurement assistance.

The MoU outlines key terms, including the sharing of information to aid in technical and commercial proposals, a period of exclusivity for Sinohydro to prepare and negotiate an EPC contract, and assistance in securing at least $250m in funding for Baniaka’s development.

The MoU is valid for three years but may be terminated early under specific conditions, such as legal restraints, permit expirations, insolvency, or if Genmin declines the proposal.

Genmin CEO Andrew Taplin said: “We are extremely pleased to have signed a binding memorandum of understanding with Sinohydro, who has a demonstrated track record in Gabon having built the Grand Poubara hydroelectricity power facility near Baniaka, as well as extensive construction experience in power and transport infrastructure.

“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.”

The Baniaka project has secured key regulatory approvals, including a 20-year large-scale mining permit and a Certificate of Environmental Conformance, as well as a signed Mining Convention with the Gabonese Government.

These approvals enable Genmin to construct and operate what is set to become Gabon’s first commercial iron ore mine.

Genmin plans to develop Baniaka with an initial production rate of five million tonnes per annum (mtpa), aiming to scale up to at least 10mtpa over time.

Commercial production is expected to begin in late 2026, with securing project financing being the next key milestone. The company is currently in discussions with various potential funding partners.

Additionally, Genmin holds exploration tenements at its Bitam project in north-west Gabon, near Oyem, which are prospective for polymetallic mineralisation.