A New Chapter for Gabon’s Mining Sector
In a monumental development for the Republic of Gabon, Genmin Limited, an Australian-listed iron ore producer, is advancing the Baniaka Iron Ore Project, which is set to become Gabon’s first commercial iron ore mine. The company reached a significant milestone on March 20, 2025, when it signed a mining convention with the Gabonese government. This agreement marks the beginning of the next phase for this ambitious mining project, positioning the Southeast African nation to take a more prominent role in the global iron ore market.
Baniaka Iron Ore Project Overview
Located in the southeastern part of Gabon, the Baniaka Iron Ore Project is set to be a flagship mining operation in the country. The project holds an estimated 760 million metric tons of iron ore, based on a JORC-compliant resource estimate, which makes it one of the most substantial iron ore projects in the region. The ore has an average Fe (iron) grade of 36.7%, which is considered to be a high-quality iron content. This makes the Baniaka project not only crucial for Gabon’s economic development but also a highly attractive asset for global steel producers who rely on quality iron ore to produce steel.
The mining convention signed between Genmin and the Gabonese government is a vital regulatory step for the project, as it provides the legal framework necessary to secure development capital, raise financing, and begin physical construction. This agreement grants Genmin the exclusive rights to explore and develop a 548.5 square kilometer area within the Baniaka hub.
Regulatory Approvals and Environmental Compliance
Genmin has already achieved significant regulatory milestones, further cementing the legitimacy and viability of the project. In 2023, Genmin received a certificate of environmental conformance for the Baniaka project, signaling its commitment to maintaining high environmental standards throughout the mining process. Additionally, in January 2024, the company secured a 20-year mining permit from the Gabonese government, granting it the legal right to proceed with construction, development, and the operation of the mine.
These approvals not only provide confidence to investors and stakeholders but also demonstrate the Gabonese government’s support for developing the mining sector in the country. Gabon is rich in natural resources, including manganese, oil, and timber, but the iron ore sector remains underdeveloped. The Baniaka project will play a pivotal role in unlocking the nation’s potential as a key global supplier of iron ore.
Production Plans and Timeline
Genmin plans to develop the Baniaka Iron Ore Project in phases. The initial production rate is set at 5 million metric tons per year (Mt/y) of high-quality iron ore, with a plan to scale up production to at least 10 million metric tons per year in the future, depending on market conditions and infrastructure development. The commencement of commercial production is targeted for late 2026, with the mine expected to produce three primary types of iron ore products:
1. Lump Ore: Large pieces of iron ore that are ideal for certain types of blast furnaces.
2. Fines: Smaller particles of iron ore that can be used in sintering processes.
3. Pellets: Iron ore that has been agglomerated into small balls, a preferred form for the direct reduction process used in steelmaking.
As the project progresses, Genmin will focus on optimizing extraction and production techniques to meet both the domestic and international demand for iron ore.
Global Interest and Strategic Partnerships
While the Baniaka project is still in its early stages, interest from global steel producers is already significant. Several large Chinese steel companies, including Baowu Resources, Jianlong Group, Minmetals Corporation, and Hunan Iron & Steel, have signed non-binding offtake agreements with Genmin. These agreements, known as Memorandums of Understanding (MoUs), outline the intention to purchase iron ore from the Baniaka project once production begins.
China is the largest importer of iron ore in the world, and securing offtake agreements with these major players indicates strong demand for the high-quality iron ore that Baniaka will provide. These MoUs not only guarantee early market access for Genmin’s iron ore but also strengthen the company’s financial position, as the agreements help secure funding and international partnerships ahead of full-scale production.
Genmin’s Broader Portfolio in Gabon
Beyond the Baniaka project, Genmin Limited is also pursuing other development projects in Gabon. The Bakoumba Iron Ore Project, located in the southeast of Gabon, is another 100% owned asset in Genmin’s portfolio. This project is still in the exploration stage, but it represents a significant opportunity for the company to expand its footprint in the country.
Additionally, Genmin is exploring the Bitam polymetallic project in the northwest of Gabon. While this project is also in its early exploration stage, the polymetallic nature of the Bitam deposit, which contains several valuable metals, could further diversify Genmin’s asset base and reduce its dependence on iron ore alone.
Gabon’s Strategic Position in Africa’s Mining Landscape
Gabon, traditionally an oil-rich country, has been seeking to diversify its economy and reduce its reliance on oil revenues. By developing its mining sector, especially in iron ore, Gabon is positioning itself as an important player in the global resource supply chain. The country is already a major exporter of manganese, and with the Baniaka Iron Ore Project, Gabon is set to become a key source of high-quality iron ore for steelmakers worldwide.
The Gabonese government has been actively encouraging foreign investments in the mining sector, offering incentives such as tax breaks, infrastructure support, and favorable mining laws. These efforts are designed to attract companies like Genmin and other international investors looking to tap into Africa’s rich mineral resources.
The Future of Gabon’s Iron Ore Industry
The Baniaka Iron Ore Project is a promising example of how Gabon is emerging as a hub for mining in West Africa. With its abundant natural resources, relatively low-cost labor, and political stability, Gabon is poised to become a significant player in the global iron ore market in the coming decades.
As the Baniaka project progresses toward commercial production in late 2026, Genmin will continue to work closely with the Gabonese government and its partners to ensure the development of world-class mining infrastructure and the creation of local employment opportunities. Additionally, the project’s success will likely spur further exploration and mining ventures across Gabon, potentially leading to the discovery of more iron ore deposits in the region.
Key Takeaways:
• Genmin Limited has secured a mining convention with the Gabonese government for the Baniaka Iron Ore Project, which is set to become Gabon’s first commercial iron ore mine.
• The Baniaka project holds an estimated 760 million metric tons of iron ore with an average Fe (iron) grade of 36.7%.
• Initial production at the Baniaka project is planned to be 5 million metric tons per year (Mt/y), with a goal to expand this to 10 million metric tons per year in the future.
• Chinese steel giants such as Baowu Resources and Jianlong Group have signed non-binding offtake agreements with Genmin for future supply from the Baniaka project.
• Genmin is also developing other projects in Gabon, including the Bakoumba Iron Ore Project and the Bitam Polymetallic Project.
• Gabon is positioning itself as a rising star in the African mining sector, with a focus on diversifying its economy through iron ore and other mineral resources.
