Genmin Secures 60% Financing for $200M Baniaka Iron Ore Project
Genmin Limited has received a pivotal Letter of Intent from Sino-Hunan International Engineering and Development Co., Ltd to finance and co-develop its flagship Baniaka Iron Ore Project in Gabon, marking a significant step towards production.
- SHICO proposes to fund 60% of Baniaka’s estimated US$200 million capital requirement
- Genmin to provide remaining 40% and explore equity investment options
- Collaboration includes Chinese engineering expertise and supply chain integration
- Partnership involves Central South University for technical support and expansion planning
- Intention to formalize agreement through a binding Memorandum of Understanding
Strategic Financing Partnership Emerges
Genmin Limited, an emerging iron ore producer focused on Gabon, has taken a significant stride forward with the receipt of a Letter of Intent (LOI) from Sino-Hunan International Engineering and Development Co., Ltd (SHICO). This LOI outlines SHICO’s intention to become a cornerstone participant and offtake partner in the development of Genmin’s flagship Baniaka Iron Ore Project. The proposed partnership aims to provide approximately 60% of the project’s funding, estimated at around US$200 million, with Genmin committing to cover the remaining 40%.
Blending Capital with Expertise
Beyond financing, the collaboration promises to integrate SHICO’s engineering, fabrication, and supply chain capabilities from China’s Hunan Province. This integration is expected to accelerate project delivery while managing costs effectively. The partnership also plans to leverage the technical expertise of Central South University, which has been involved in evaluating the Baniaka ore body, to support both initial development and future expansion beyond the initial 5 million tonnes per annum production target.
Towards a Binding Agreement
Both parties have expressed their intention to convert the LOI into a binding Memorandum of Understanding (MoU), which will formalize financing structures, engineering procurement and construction (EPC) frameworks, and procurement arrangements. SHICO also reserves the option to enter into a five-year iron ore purchase agreement, contingent on mutually agreeable pricing terms. This LOI complements a previously executed MoU with SinoHydro, another Chinese partner with experience in Gabon, reinforcing the project’s strong ties with Chinese industry and government-backed entities.
Implications for Baniaka and Genmin
With environmental approvals and a 20-year mining permit already secured, Baniaka is positioned to become Gabon’s first commercial iron ore mine. The proposed financing and technical collaboration are critical milestones that could unlock the project’s full potential, enabling Genmin to target commercial production by late 2026. The involvement of SHICO and Central South University also signals a long-term strategic partnership that could support scaling production to at least 10 million tonnes per annum in the future.
Looking Ahead
While the LOI is non-binding and subject to due diligence and final agreements, it represents a vote of confidence from a major Chinese state-owned enterprise in Genmin’s project and management. Genmin continues to engage with other potential financiers to secure the full funding package necessary to bring Baniaka into production. The next key developments will be the finalization of the MoU and securing binding financing and offtake agreements.
Bottom Line?
Genmin’s partnership with SHICO could be the catalyst that transforms Baniaka from a promising project into Gabon’s first commercial iron ore mine.
Questions in the middle?
- What are the detailed terms and conditions that will govern the binding MoU between Genmin and SHICO?
- How will iron ore pricing terms be negotiated to secure the proposed five-year offtake agreement?
- Which other financing partners is Genmin engaging with to cover the remaining project funding?
