Arrow Minerals Ltd announced a significant milestone by signing a non-binding Memorandum of Understanding with Baosteel Resources Holding. This agreement provides a framework for negotiating binding mine gate iron ore sales contracts from Arrow's Simandou North Iron Project. The MOU is pivotal as it outlines key commercial elements, including iron ore pricing, freight logistics, ore handling, and government royalties, essential for successful transactions.
Baosteel, a subsidiary of the BaoWu Group, is renowned as the world’s largest steel producer and a primary advocate for the Simandou Iron Ore Project, the largest undeveloped high-grade iron ore deposit globally. This collaboration is anticipated to enhance Arrow's access to markets, leveraging Baosteel's extensive expertise and resources in large-scale iron ore operations.
Arrow's Managing Director emphasized that this agreement could attract significant global investment, fostering a world-class mining industry in Guinea. The multi-user infrastructure developed under this initiative is expected to yield substantial local employment opportunities and national benefits. The synergies created by the proximity of Arrow’s project to Blocks 1 and 2 of the Simandou Iron Project will further streamline operations and enhance productivity.
Since initiating field activities in 2023, Arrow has completed 521 drilling holes, totaling over 10,300 meters. This extensive exploration has culminated in an estimated Exploration Target of 281 to 716 million metric tons of high-grade iron ore. Preliminary metallurgical tests indicate promising results, with hematite fines achieving an impressive iron content of 61-64% through straightforward beneficiation processes.
Arrow’s Managing Director highlighted that this partnership could attract substantial global investment, promoting a world-class mining industry in Guinea, while simultaneously creating local employment opportunities. With Arrow’s project located near significant iron ore deposits, operational synergies are expected to boost productivity.
