Sino-Hunan Expresses Interest in Genmin’s Baniaka Iron Ore Project in Gabon
On 1 December 2025, Australian firm Genmin (ASX: GEN) announced that it has received an expression of interest from Chinese company Sino-Hunan International Engineering and Development Company (SHICO) to enter into a partnership to develop the Baniaka iron ore mine in Gabon.
The Baniaka mine is located in south-east Gabon, near the city of Franceville in the Haut-Ogooue province. The mine covers an area of 881 square kilometers with a mineralised vein about 85 kilometers long. Genmin is in negotiation with Owendo for a long-term agreement to transport the ore along the Trans-Gabon railway to the bulk seaport of Owendo for export.
According to the statement released by Genmin, SHICO plans to put up 60% of the total cost of the project. A pre-feasibility study put the cost of operationalizing the mine at around USD 200 million.
Initially, the production will be about 5 million tonnes annually. In addition to being a shareholder, SHICO would also be a client and would be prepared to sign a 5-year offtake agreement.
The period of the partnership would be for ten years. SHICO also reserves the right to acquire the mining asset at a later stage. SHICO is an engineering and construction company with a well-oiled supply chain for building materials.
In the letter of intent (LOI), SHICO also intends to pursue its partnership with the Central South University in China in the area of geological survey and ore analysis. SHICO is a subsidiary of Hunan Construction Investment Group, and acts as its international arm.
The reserves of iron ore at Baniaka are estimated at 760 million tonnes with high-grade ore. On average, the ore contains 63% iron content and has few deleterious impurities such as silica or alumina. The Baniaka ore presents a reducibility index of 81.5%, compared to about 67% for iron ores from Australia or Brazil. Upon achieving cruising speed, the Baniaka mine is projected to output 10 million tonnes annually.
Another noteworthy feature is that the facilities will be powered by hydroelectric sources. In the future, it is also envisaged to carry out steel production locally. The marketing team has already come up with the trademark Baniaka Green Steel to highlight its low carbon footprint.
The transaction is subject to regulatory approval. Initially, Genmin received a 20-year large-scale mining license. Based on the current mining laws, the Government of Gabon shall have a 10% stake in the project free of charge, with an option to purchase another 15%.
It is to be recalled that in April 2025, Genmin signed an Accord with SinoHydro to develop the Baniaka Project. The Accord called for SinoHydro to provide engineering, procurement and construction (EPC) services for the Project. During the recent state visit of Macron to Gabon, the AFD announced that it is ready to finance the upgrade of the Trans-Gabon railway to the tune of about USD 200 million. Thus, the technical and financial pieces for the implementation of the project are now coming together.