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Genmin’s agreement guarantees continuous hydro supply in Gabon

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Early stage exploration work at Genmin’s Baniaka in Gabon. Image credit Genmin

Genmin’s agreement guarantees continuous hydro supply in Gabon  

Genmin recently signed a long-term power supply agreement with Gabon’s State-owned power utility, Société de Patrimoine du Service Public de l’Eau Potable, de l’Énergie Électrique et de l’Assainissement (SdP) that will ensure the iron ore developer a continuous supply of electricity for at least the next 20 years.   

The agreement, which follows the signing of an MoU with SdP on 11 April 2022 provides for the initial supply of 30 megawatts (MW), which can be increased to 50MW to accommodate future expansion at the Baniaka project in the West Central African country of Gabon.

The renewable hydroelectricity will be provided from the Grand Poubara Hydropower Station (Grand Poubara) located on the Ogooué River, approximately 35km north-east of Baniaka

According to Genmin’s Managing Director and CEO Joe Ariti, the signing of a long-term renewable power supply agreement for Baniaka completes another important project development milestone.

Genmin is targeting first iron ore production in mid-2024. The agreement satisfies one of our key ESG objectives of delivering high value, greener iron ore products to global markets, promoting reductions in Scope 1 and Scope 3 carbon emissions in iron making,” says Ariti.

Key terms of agreement (Genmin’s agreement guarantees continuous hydro supply in Gabon)

The key terms of the Power Agreement for Baniaka are:

  • Initial 20-year contract term, extendable on mutually agreeable terms beyond the initial term
  • The initial supply term does not commence until certain conditions have been satisfied including Genmin receiving financing and all necessary permits and approvals to develop Baniaka and operate the OHTL
  • A fixed and variable tariff structure that results in an overall projected cost of less than US¢10 per kilowatt hour
  • Genmin will supply and install the step-down transformer at the Grand Poubara transmission yard, as well as construct, own, and maintain the OHTL between Grand Poubara and Baniaka, providing control of the build-time and guaranteeing a dedicated electricity supply
  • Reserved capacity may be increased from 30MW to 50MW from the sixth operating year onwards, subject to an expansion of Baniaka and provided water flow rates at Grand Poubara support such supply and
  • Standard termination rights for an agreement of this nature, including a right for either party to terminate in the event of extended force majeure and a right for SdP to terminate for repeated failures by Genmin to pay invoices.

Grand Poubara Grand Poubara is located approximately 20km from the city of Franceville at Poubara Falls on the Ogooué River. The operation, which is located approximately 35km north north-east of Baniaka and has a total capacity of 200MW. Sinohydro Corporation Ltd designed and constructed the 160MW expansion.

Sinohydro currently maintains and operates Grand Poubara for SdP. Currently there are two (2) major transmission lines from Grand Poubara, one to Franceville and the other to Compagnie Minière de l’Ogooué SA’s (COMILOG) metallurgical plant near Moanda.

Pipeline of project (Genmin’s agreement guarantees continuous hydro supply in Gabon)

ASX listed Genmin has a 100% interest in three comprising six  granted exploration licences in Gabon. Genmin’s Baniaka and Bakoumba projects are located in south-east Gabon near the provincial city of Franceville, where the Company has an extensive footprint and controls all acreage prospective for iron ore. The Baniaka and Bakoumba projects represent a potential iron ore hub with 2,445km2 of landholding and 121km of iron mineralised strike with only 13% drill tested with diamond drilling.

Genmin’s flagship project, Baniaka, is at feasibility stage with defined JORC Code (2012 Edition) compliant Mineral Resources and Ore Reserves, and is favourably situated adjacent to existing and operating bulk commodity transport and renewable energy infrastructure.

Genmin’s agreement guarantees continuous hydro supply in Gabon

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 Genmin’s agreement guarantees continuous hydro supply in Gabon  

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