(Ecofin Agency) - Genmin is gearing up to start iron ore production at its Baniaka mine in Gabon by 2026. According to a 2022 pre-feasibility study, to achieve this goal, the Australian company needs $200 million to finance related construction works.

Genmin hired Oval Advisory, a London-based consulting firm, to help secure the necessary funds to develop its Baniaka iron mine in Gabon. Announced on March 31, this collaboration aims to diversify financing sources for the project, which requires an initial $200 million investment to launch operations.

So far, Genmin had preferred Chinese partners to fund its Baniaka iron ore project in Gabon, holding advanced talks with trading, construction, and mining companies. Teamining up with Oval Advisory broadens financing options and could speed up negotiations to kickstart production by late 2026.

“Our focus now is to finalise project funding. The strategic retention of Oval, to assist with accessing other potential markets globally, including India, the Middle East and North Africa, is complementary to our existing project funding efforts, which are well advanced with multiple parties,” says Andrew Taplin, Genmin's CEO. 

Genmin has started preliminary work on a 60 km haul road to connect its Baniaka mine to a rail terminal on the Transgabonais network. Initial production is set at 5 million tonnes per year, with plans to expand to 10 million tonnes. This project would establish Genmin as a new player in the iron ore market.

The original timeline for production, initially scheduled for the second quarter of 2025, has been delayed due to financing setbacks. The company is now working to secure funds and move the project forward.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho