Gabon: Genmin appoints a consultancy firm to finance its mining project

Australian mining company Genmin is taking a crucial step in the development of its Baniaka iron ore mine, located in the heart of Gabon. The company, which is aiming to start commercial production in 2026, has hired London-based Oval Advisory to diversify its sources of financing and raise the $200 million needed to build the project's key infrastructure. This strategic partnership, announced on Monday, marks a new phase in the progress of this major mining project.

To date, Genmin has relied mainly on advanced discussions with Chinese partners, including trading, construction and mining companies. However, in order to reduce the risks associated with over-reliance on a single market and to speed up fund-raising, the company has decided to integrate Oval Advisory into its capital-raising process. This specialist financial advisory firm will assist Genmin in exploring new financing opportunities in India, the Middle East and North Africa.

"Our goal now is to finalise the financing of the project," said Andrew Taplin, Chief Executive Officer of Genmin. "The strategic retention of Oval, to help us access other potential markets around the world, including India, the Middle East and North Africa, is complementary to our current project finance efforts, which are well advanced with multiple parties," he added.

This diversification of funding sources could not only strengthen the economic viability of the project, but also shorten the time needed to implement it. Initially scheduled to come on stream in the second quarter of 2025, the timetable has been pushed back to the end of 2026 due to the challenges encountered in raising funds.

In parallel with the financial negotiations, Genmin has launched preliminary work on the construction of a 60 km transport road linking the future mine to the rail terminal integrated into the Transgabonais network. This infrastructure will be essential for transporting ore to export ports and ensuring the project's competitiveness on the international market.

With an initial production forecast of 5 million tonnes per year, expandable to 10 million tonnes, Baniaka positions Genmin as a new iron producer on the world market. The project, whose potential was confirmed by a pre-feasibility study published in 2022, represents a significant opportunity for Gabon to diversify its economy and strengthen its role in the African mining sector.

Although promising, the Baniaka project is not without its challenges. In addition to financial constraints, Genmin will have to navigate a complex regulatory environment and ensure sustainable development that respects local communities and the environment. The initial postponement of the commissioning schedule also illustrates the need for the company to maintain rigorous management of deadlines and costs.

If it achieves its objectives, the Baniaka mine could generate significant economic benefits for Gabon. As well as creating direct and indirect jobs, the project would help boost the country's tax revenues and attract more foreign investment to the mining sector. For a country seeking to reduce its dependence on oil, Baniaka represents a strategic opportunity for economic diversification.

With the support of Oval Advisory and ongoing discussions with Chinese partners, Genmin seems determined to overcome the financial and logistical hurdles to realise its ambition. The commissioning of Baniaka would not only mark a major milestone for Genmin, but also an important milestone for Gabon's mining development.

As the eyes of the world turn to Africa to meet the growing need for raw materials, Baniaka's success could inspire other mining initiatives on the continent, while consolidating Gabon's position as an emerging player in the global extractive industry.