By: Ecofin agency

Genmin said on Wednesday, May 13, that it had received several expressions of interest to finance all or part of the capital required to develop Baniaka, its iron ore project located in southeastern Gabon. The announcement confirmed that the asset continues to attract a broader circle of investors beyond existing discussions with Chinese partners.

According to the Australian mining company, the proposals take several forms. A Middle Eastern consortium submitted an unsolicited and non-binding offer to provide the full amount of capital required through the creation of a new joint venture. Meanwhile, a Shanghai-listed Chinese company expressed interest in acquiring at least 51% of the project, directly or indirectly, while also supporting construction financing and technical expertise.

Genmin also said a global commodities trader submitted a draft agreement that includes a prepayment facility backed by future production offtake commitments worth up to $50 million. In addition, a mining-focused investment fund offered $10 million in pre-construction financing.

These proposals add to a letter of intent submitted in December 2025 by Chinese company SHICO, which seeks to finance up to 60% of the project’s required capital. Genmin also signed a memorandum of understanding in April 2025 with Sinohydro, a subsidiary of Power Construction Corporation of China, for the construction of the mine, including potential support in fundraising efforts.

An Asset Closely Watched in Libreville

Several factors explain the scale of investor interest in Baniaka. On the regulatory side, the project already holds a 20-year mining permit, environmental approval, and a mining convention signed with the Gabonese state.

The project also benefits from existing transport infrastructure. Production will travel along a 60-kilometer road, which remains under construction, to a rail terminal connected to the Trans-Gabon Railway before exports ship through the mineral port of Owendo.

Global demand dynamics also continue to support the project. The commissioning of the Simandou megaproject in Guinea reinforced Chinese interest in African iron ore deposits, as China remains the world’s largest iron ore consumer. Genmin plans to develop Baniaka initially at a production rate of 5 million tonnes annually, with the possibility of gradually increasing capacity to at least 10 million tonnes per year.

Beyond the regulatory framework, the Gabonese government continues to provide strong support for the project, which authorities consider a mining-sector priority. During meetings held this week in Libreville with Mines Minister Sosthène Nguéma Nguéma, Genmin said officials assured the company that it would secure access to public infrastructure.

The stakes also extend beyond Genmin itself, as Gabon seeks to diversify mining revenues that currently depend heavily on manganese by developing a new iron ore industry. Under the mining convention, Gabon holds a free 10% stake in the project and retains an option to increase its participation to 25%. The state will also receive a 5% royalty on sales revenue, while Genmin’s profits will face a 35% corporate tax rate.

Investment Decision Remains the Next Test

Despite growing momentum, the development of Baniaka remains far from finalized. Genmin said all proposals received at this stage remain non-binding and subject to ongoing due diligence and negotiations whose outcomes remain uncertain. However, Executive Chairman Greg Lilleyman said he remains “confident” in the company’s ability to finalize an agreement with one or more partners. Such agreements would allow the board to make a final investment decision expected by mid-2026.

That decision would allow the company to launch mine construction and clarify the production timetable. While Genmin still referred in January 2026 to a production start before year-end, the company’s more recent communications have focused primarily on the final investment decision as the next major milestone without specifying a commissioning date for the mine. The coming months therefore look decisive.