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ADU PReVIeW

Gabon gets serious about its

mineral future

frica Down Under can offer the per- dollars of capex iron
Afect platform for governments aiming ore projects usually
to put their foreign investment profile on require.”
the international mining stage. Each year Not only does the
a different jurisdiction emerges at the fo- presence of existing
rum as a new mineral province. infrastructure lower
In 2022, it can be assumed Gabon will capex, it also pre-
be among the main contenders for inves- sents cash cost and
tors’ attention. marketing benefits.
With a long-established industry, abun- “ H y d r o p o w e r
dant infrastructure and a new, dedicated equals greener pro-
Minister of Mines, the West African coun- duction,” Ariti said.
try has all the elements to be of major “We still have rail-
interest to delegates at this year’s Africa way and ships but
Down Under. overall it is greener.
The Gabonese delegation will be led We are already re-
by Minister Elvis Ossindji, who is the first ceiving indications
minister to take charge of a dedicated that there is proba-
mining ministry. It is fitting that one of the bly a $US10/t green
Minister’s first international marketing as- premium to be had
signments is to Perth, given Australian from that. That is
juniors are at the heart of Gabon’s explo- on top of the value-
ration renaissance. in-use premium we
With a 50-year history of manganese already expect be-
mining and more than 30 years as an oil cause of the quality
producer, Gabon has never approached Gabon Minister of Mines Elvis Ossindji of the product.”
minerals exploration and development as Ariti’s confidence
a separate portfolio. Now, however, Os- in the marketability
sindji has responsibility for the sector and Genmin is undoubtedly the most ad- of the Baniaka product was reinforced in
ASX-listed companies in the country are vanced of the triumvirate of juniors to the July when Genmin signed an agreement
seeing the benefit. point that Ariti doesn’t believe the compa- with Anglo American plc over offtake and
“Mining has always been an after- ny should even wear the label any longer. royalties from the project.
thought but not anymore, for the first time, “In the last quarter, we have differenti- The South African major has agreed to
we’ve got a dedicated ministry where pre- ated ourselves from the juniors, and we pay $US10 million in cash immediately for
viously it had been attached to something now consider ourselves an emerging a 1% sales revenue royalty on Baniaka
else,” Genmin Ltd managing director Joe company,” he said. “We have had an al- product. The royalty is payable on the first
Ariti told Paydirt. “Now we have a young, most threefold increase in resources to 75mt of iron ore products sold and Gen-
energetic minister, and we are already 700mt and we have defined the oxide min has a buyback right that is exercis-
seeing through things like licence renew- resource enabling production for the first able at any time.
als being granted, that things are moving.” 12.5 years with 250mt in the oxide.” In addition, Genmin has granted Anglo
Ariti said the change had come in re- The new resource on the company’s American an exclusive right to negotiate
sponse to conversations with industry Baniaka iron ore project – 697mt @ up to $US75 million in project funding and
about how Gabon could progress explo- 39.3% iron – will be immediately plugged 100% of offtake from Baniaka.
ration and development. into a PFS, due for release later this year. “This deal is really the crescendo of our
“It shows the attitude of the Govern- Ariti said the combination of oxide, pri- recent progress,” Ariti said. “Anglo had
ment that they were prepared to come mary and detrital mineralisation over the looked at our project, and the product – its
and ask us our opinion,” he said. “It has first 12 years of mining would allow Gen- value-in-use, grade, metallurgy and phys-
always been a two-way conversation in min to keep opex down. The presence of ical properties – and recognised its qual-
Gabon. cheap hydropower and existing available ity. They were very keen to be involved.
“It is a Tier-1 jurisdiction in African infrastructure would play a role in damp- “It is a huge company with 60 mtpa of
terms with a long history of mining. It ening capex requirements. its own iron ore production and they don’t
already produces 9-10 mtpa of manga- “It is a greenfields discovery but be- do many deals so I think their endorse-
nese, projects are and have been devel- cause of the available infrastructure – the ment here speaks to the quality of Ban-
oped. There is a good mining code, and it port, the rail, the power – it is essentially iaka. How many other companies have
doesn’t have a chequered sovereign risk a brownfields project,” Ariti said. “Our signed an agreement like this at the PFS
history.” project will be a fraction of the billions of stage?”

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