African Minerals: Chinese Companies Intend to Invest 200 Million USD in Australian Company Genmin's Iron Ore Business in Gabon
¬ Genmin Completes Equity Financing of 25.7 Million Australian Dollars (Approximately 16.9 Million US Dollars), Helping the Baniaka Iron Ore Project Advance to the Final Investment Decision Stage
¬ The Company Plans to Achieve Its First Commercial Production by the End of 2026, With an Initial Annual Capacity of 5 Million Tons and a Potential to Expand to at Least 10 Million Tons
¬ A Chinese Partner (SHICO) Expresses Intent to Provide 60% of the Up to 200 Million USD Construction Funding
On Thursday, December 18, Australian Mining Giant Genmin Limited announced the completion of a 25.7 million Australian Dollar (approximately 16.9 million US Dollar) equity financing. The company first disclosed this transaction at the end of November. Genmin stated that this financing will help accelerate the development of its Baniaka Iron Ore Project in Gabon.
Specifically, the company will complete the transaction in two phases. Genmin raised 1.32 million Australian Dollars in the first round of financing in November, and after shareholder approval this week, the second round of financing of 24.4 million Australian Dollars has been secured. Genmin stated that this funding will be used to support on-site construction of the Baniaka project and push the project toward the final investment decision.
Greg Lillemann, Executive Chairman of Genmin, said: "With the successful completion of the second phase of financing, the company's current financial position is extremely solid – not only debt-free and well-capitalized, but also fully supported by the board and management team. This funding will accelerate key work on the Baniaka project and lay the foundation for the final investment decision."
Through this plan, the company aims to achieve its previously announced goal of commercial production at Baniaka by the end of 2026. According to the 2022 preliminary feasibility study, the mine's initial annual capacity could reach 5 million tons of iron ore, with potential to increase to at least 10 million tons in the future. While conducting the preliminary feasibility study, Genmin also plans to seek approximately 200 million USD in construction financing.
In this context, the company announced at the beginning of December that it had received a letter of intent from a Chinese partner interested in supporting the project. The partner, Zhongxiang Overseas Construction Development Co., Ltd. (SHICO), expressed intent to provide up to 60% of the financing for the Baniaka project. However, Genmin has not yet announced any binding agreement and stated that it is still in discussions with other third-party partners.
Once completed, the Baniaka project will add a new iron ore mining operation to Gabon, complementing the Bilinga project operated by Fortescue. According to the mining agreement signed in March 2025, the Gabonese government will have a 10% free interest in the future mine and the right to choose to increase its stake by up to 25%.
Source: ecofinagency
Original: toutiao.com/article/1851882721715275/
Statement: This article represents the views of the author himself.