(Ecofin Agency) - Australian mining company Genmin has been developing the Baniaka iron ore deposit in Gabon, which has the potential to produce 10 million tonnes of iron ore annually. The company initially planned to start production in 2025 but it was finally postponed to 2026 due to ongoing efforts to secure financing for construction.

On March 17, 2025, Genmin appointed Andrew Taplin as its new Managing Director. Taplin, an iron ore expert with 30 years of experience, including at Rio Tinto, will prioritize finalizing financing negotiations to fund the mine's construction and commissioning by 2026.

Genmin revealed the delay in its January 31 activity report but did not provide explanations. Observers suggest that financing challenges could be the reason. A pre-feasibility study in 2022 estimated the initial capital for the project at $200 million, with plans to build infrastructure for an initial output of 5 million tonnes per year. The company intends to invest an additional $250 million later to double production capacity.

While awaiting production, Genmin has signed non-binding agreements with Chinese companies, including Baowu Group, to sell 19 million tonnes of iron ore. These agreements may involve loans or prepayments for future deliveries, but details remain undisclosed.

Genmin’s plans depend on multiple factors, including iron ore prices. The World Bank reports a decline in average prices from $121.3 per tonne in 2022 to $109.4 per tonne in 2024. BMI predicts prices will fall further to $100 per tonne in 2025 and $78 per tonne by 2033. Genmin based its feasibility study on a price of $100 per tonne.

Emiliano Tossou