(Ecofin Agency) - Australian company Genmin has raised $AU10 million (around $US6.8 million) to support its Baniaka iron ore project in Gabon. The project is expected to produce 5 million tonnes of iron ore annually for at least ten years.

On October 4, 2024, Genmin announced the funding, which will primarily be used for general corporate purposes, including the operation of its representative office in Gabon. The company is working to secure additional financing to bring the mine into production by 2025.

Genmin aims to finalize a mining agreement with the Gabonese government after obtaining a 20-year mining permit in January. A pre-feasibility study conducted in 2022 indicated that an investment of USD 200 million is needed to start production by the second half of 2025.

The Baniaka project is central to Gabon's strategy to diversify its mining sector, particularly focusing on iron ore. The government is also looking at the Belinga iron ore deposit, managed by Australia's Fortescue.

Manganese holds a major share in Gabon's mining sector. The latter contributes about 6% of gross domestic product (GDP) and 9% of government revenue, according to 2021 data from the Extractive Industries Transparency Initiative.

Emiliano Tossou