Posted on 09 Feb 2023
Ivindo Iron, subsidiary of Australia-listed Fortescue Metals, has signed the Mining Convention with the Gabonese government for the Belinga Iron Ore Project in Gabon, Kallanish notes.
The first mining is scheduled for the second half of 2023. "The Mining Convention governs all the legal, fiscal and regulatory regimes for the 4,500 square kilometres which comprise the Belinga Project, including early development for production of up to two million tonnes per annum, while studies advance potential designs of a large-scale development,” Fortescue says in a bourse filing.
“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may one day prove to be among the largest in the world," says Fortescue founder and executive chairman Andrew Forrest.
The capital estimate for the early-stage mining development is approximately $200 million, with investment over calendar 2023-24. The development involves conventional open-pit mining methods to produce iron ore that will be trucked, railed over existing roads and rail infrastructure, and shipped from the Owendo Mineral Port, near Libreville, the miner adds.
Fortescue has progressively assessed the Belinga Project since 2018. Along the Atlantic coast of Central Africa, Gabon hosts massive iron ore deposits that are said to extend into neighbouring Cameroon and Congo.
Ivindo Iron is the operating entity for the Belinga Project. It is held 90% by the Belinga Joint Venture Company, established by Fortescue (80% share) and its joint venture partner, the Africa Transformation and Industrialization Fund (20%). By the Gabon Mining Code, the Gabon government will have a free carry interest of 10% in Ivindo Iron.
Another Australia-listed miner, Genmin Limited (GL), has a 100% interest in three projects in Gabon, including Baniaka and Bakoumba, comprising six granted exploration licences covering approximately 5,064 square km. The Global Mineral resource estimate for Baniaka increased to 760 million tonnes of iron ore, representing just 15km of the interpreted 85km strike extent (see Kallanish passim).
Source:Kallanish
