• China’s SHICO signals intent to fund 60% of Genmin’s Gabon iron project
  
• Follows earlier $250M financing offer from Sinohydro, part of PowerChina
  
• Baniaka targets 2026 output; Gabon to hold up to 35% project stake

Genmin Limited said on Monday it has received a letter of intent from Chinese industrial firm Sino-Hunan International Engineering and Development (SHICO). The document expresses SHICO’s interest in helping fund and develop Genmin’s Baniaka iron ore project in Gabon.

The announcement comes about eight months after Genmin signed a separate memorandum of understanding with Sinohydro, a unit of PowerChina International, highlighting rising Chinese interest in the asset.

In mid-April, Sinohydro said it was willing to help Genmin secure at least 250 million dollars in funding for Baniaka’s construction. The potential partnership also included an engineering contract that would give Sinohydro responsibility for developing the mine.

According to terms disclosed by Genmin, SHICO intends to provide 60 percent of the project’s required financing, estimated at 200 million dollars in a 2022 pre-feasibility study. The letter also outlines a 10-year strategic collaboration plan to develop a comprehensive solution for the successful delivery of the project.

SHICO may also seek to enter into a future offtake agreement for the mine’s production.

China is the world’s largest consumer of iron ore, a key raw material for steel used in construction. In October, Reuters reported a 10 percent month-on-month increase in Chinese iron ore imports amid stronger demand.

Through Baniaka, Sinohydro and SHICO are positioning themselves to participate in a project expected to produce 5 million tonnes of ore per year initially, with potential to reach at least 10 million tonnes.

The expressions of interest have not yet resulted in a binding commitment. Genmin said it will continue negotiations toward a formal agreement.

The company added that SHICO’s letter of intent would complement its earlier memorandum of understanding with Sinohydro, without specifying how this would affect the project’s next steps. It said it is also in discussions with several other parties as part of the process to secure full construction financing.

Genmin aims to start commercial production at Baniaka by the end of 2026. Under a mining convention signed in March 2025, the Gabonese state is entitled to a free 10 percent stake in the project and may acquire an additional stake of up to 25 percent. It also benefits from a 35 percent corporate tax rate and a 5 percent mining royalty.

Aurel Sèdjro Houenou