Together with earlier offtake deals announced in December with China Minmetals and Changzhou Dongfang Special Steel Genmin now has agreements for up to 16 million tonnes of product over three years.

 

The latest non-binding agreement is with Jianlong Group, one of the 10 largest steel producers in the world, and China's second largest privately owned iron and steel enterprises.

 

During 2021, Jianlong also commissioned China's first hydrogen-based iron production line, which uses hydrogen rather than coking coal to produce iron from raw ore, and it seeks to completely replace carbon as a reduction agent in its green steel agenda.

 

The company is looking to import 1.5Mtpa of fines and 500,000tpa of fines from Baniaka over an initial two years, for a total of 4Mt of product. 

 

Genmin managing director Joe Ariti said described Jianlong as a "future facing" steel producer that could ultimately bring its expertise to decarbonise the steel-making value chain.

 

Baniaka is already looking to reduce its emissions by hooking into Gabon's Grand Poubara hydro-electric plant, and believes the renewable energy source could be used to produce green hydrogen.

 

The Jianlong deal follows agreements struck in late 2021 with China's state-owned Minmetals and privately-run CDSS to each take 2Mtpa of product over three years.

 

Genmin was working towards development an open-pit operation producing an initial 5Mtpa, with plans to double that over time, although its non-binding agreements now exceed the stage one plan.  

 

Pricing will be based on an agreed market index. 

 

The MoUs are targeted to be converted into binding agreements in mid-2023.

 

Pilot scale test work as part of the Baniaka preliminary feasibility study produced 65% product grades last year.

 

A value-in-use assessment of Baniaka lump and fines products is expected shortly.

 

The PFS is expected to be completed in early 2022. 

 

Genmin, which listed in March 2021 with a A$30 million raising, has seen its shares trade between 13.5c and 34c over the past year, and opened up 4% this morning at 25c, valuing it at $97 million.