The huge demand for iron ore in China is expected to become a financing partner: Australian miner Genmin has hired London-based consultancy firm Oval Advisory to raise funds for the Baniaka iron ore project in Gabon, Africa.
Genmin is preparing to start production of iron ore at the Baniaka mine in Gabon before 2026. According to a pre-feasibility study conducted in 2022, to achieve this goal, the Australian company needs $200 million to fund related construction projects.
Genmin has hired London-based consultancy firm Oval Advisory to help secure the necessary funding for the development of the Baniaka iron ore project in Gabon. This collaboration, announced on March 31, aims to provide diversified financing sources for the project, which requires an initial investment of $200 million to commence operations.
So far, Genmin has been inclined towards Chinese partners to provide funding for its Baniaka iron ore project in Gabon and has held in-depth negotiations with trading, construction, and mining companies. Collaborating with Oval Advisory broadens financing options and may accelerate negotiation progress to begin production by the end of 2026.
"Our current focus is completing project financing. Strategically retaining Oval to assist in entering other potential global markets, including India, the Middle East, and North Africa, complements our existing project financing efforts, which have made progress with multiple parties," said Genmin CEO Andrew Taplin.
Genmin has begun preliminary work on a 60-kilometer-long transport road to connect its Baniaka mine to the rail terminal of the Transgabonais network. The initial output is set at 5 million tons per year, with plans to expand to 10 million tons. This project will make Genmin a new player in the iron ore market.
The initial production schedule was originally set for the second quarter of 2025 but was postponed due to financing setbacks. The company is currently working to raise funds and advance the project.
Source: ecofinagency
Original article: https://www.toutiao.com/article/1828265274885120/
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