Fortescue Metals Group, through its joint venture company Ivindo Iron SA, today inked the Mining Convention with the Gabonese Republic for the Belinga Iron Ore Project (Belinga Project).
The Mining Convention will see the first mining anticipated to begin in the second half of 2023, providing Fortescue Metals and Fortescue Future Industries (FFI) with expansion potential across Africa.
According to Fortescue, the Mining Convention governs all legal, budgetary, and regulatory regimes for the Belinga Project’s 4,500 square kilometres, including early development for production of up to two million tonnes per year. At the same time, studies explore potential designs for large-scale development.
“The Gabonese Republic chose Fortescue to develop Belinga not only due to our strong track record of delivering major projects, but due also to our Company-wide commitment to use our major industrial scale and expertise to assist heavy industry combat climate change,” Fortescue Founder and Executive Chairman Dr Andrew Forrest AO said.
Dr Forrest stated that climate change is increasingly recognised as a significant risk by governments worldwide, and it is critically seen as a threat to Gabon’s unique natural heritage.
“Geological mapping and sampling programs have confirmed our initial thoughts that this new West African iron ore hub may well one day prove to be among the largest in the world,” Dr Forrest AO added.
According to him, the key feature of this geology is its ability to integrate with Fortescue Pilbara ore mixes. As a result, Dr Forrest AO said both Australia and Gabon’s iron ore industries would be preserved and strengthened.
“We have enjoyed strong support and positive feedback from local communities. We will continue to work together to maintain Fortescue’s highest standards of environmental and community consultation,” he stated.
Dr Forrest AO added that the growing iron region lives up to its promise. He added that it would complement Fortescue’s Australian operators by improving its blended products, extending the lives of its mines, and opening up new worldwide markets.
“Due to its clear and unambiguous industrial leadership away from climate change, FFI has attracted respect from Governments around the world. This support, as indicated by Fortescue’s selection to develop Belinga by the Gabonese government has facilitated Fortescue’s transition to a global green resources, green energy and products company,” he said.
The capital estimate for early-stage mining development is roughly US$200 million (on a 100% basis), with spending planned for calendar 2023-24. The ore will be trucked and railed through existing roads and rail infrastructure and delivered from the Owendo Mineral Port, near Libreville, using traditional open pit mining processes.
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