Baosteel and Arrow sign Iron Ore Development MOU
Perth, Oct 21, 2024 AEST (ABN Newswire) - Arrow Minerals Ltd (
ASX:AMD) is pleased to advise that it has reached an important milestone in relation to accessing the benefits of the Simandou multi-user railway.
Key Points
- The Non-Binding Memorandum of Understanding (MOU) provides a framework to negotiate binding agreements to deliver Arrow Minerals iron ore to steel mill customers.
- The MOU focuses on the negotiation of binding mine gate iron ore sales contracts.
- The framework includes provision for all key commercial elements including iron ore pricing, freight, ore haulage, ore handling, ship loading and government royalties.
Arrow has signed an MOU providing a framework for potential mine gate sales of iron ore to Baosteel Resources Holding (shanghai) Co.Ltd (Baosteel) from Arrow's Simandou North Iron Project. The MOU is nonbinding and remains subject to Arrow's resource and reserve estimation, completion of studies on the project, project development, and negotiation and execution of definitive agreements.
Baosteel is a wholly owned subsidiary of the BaoWu Group. BaoWu Group is the world's largest steel producer and one of the lead proponents of the Simandou Iron Ore Project, the largest undeveloped high-grade iron ore deposit in the world.
BaoWu Group is a substantial contributor of expertise, engineering services, process equipment and funding to the Simandou Iron Ore Project, and an equity shareholder in the mining and infrastructure entities underpinning the development. The BaoWu Group are also highly successful long term participants in large scale iron ore joint venture projects throughout the world, including the Pilbara of Western Australia, since the early 1960's.
Arrow Managing Director David Flanagan said: "This is an important milestone for Arrow, the Simandou North Iron Project and Guinea. The delivery of multi-user infrastructure will continue to attract significant global investment which in turn will promote the growth of a world class mining industry. That will result in globally competitive operations, substantial local employment and extensive national benefits."
"It has taken millions of man-hours, billions of dollars and thousands of pages of contracts for all the joint venture partners, including BaoWu Group, to develop the Simandou Iron Project, which is due for commissioning in late 2025. It is important to recognise the significant role that the Guinea Government has played in ensuring that this infrastructure is delivered as a 'multi-user' facility that has the potential to support numerous industries and provide substantial benefits to Guinea.
"Blocks 1 and 2, as part of Simandou Iron Project, are directly adjacent to Arrow's Simandou North Iron Project which creates real operating synergies due to their close proximity. Future mine gate sales will deliver Arrow clear access to markets for our product and optimal alignment with our nearest neighbour."
"Since commencing field activities at our Simandou North Iron Project in 2023, Arrow has completed 521 holes for a total 10,309 metres, culminating in an Exploration Target announcement and the intention to move to resource drilling and scoping studies in 2025."
The Exploration Target for the Simandou North Iron Project was previously announced by the Company to the ASX on 6 August 2024 in the report titled "Exploration Target for Hematite Fines Project", which is available for review on the Company's website, and the ASX website as referenced below.
The Exploration Target for the Simandou North Iron Project is estimated between approximately 281 and 716 million tonnes of Simandou Formation Oxide BIF, at 33-46% Fe. The Company is encouraged by the preliminary metallurgical testwork undertaken on the same mineralisation which achieved a 61-64% Fe, low alumina (<0.5%) hematite fines product from a simple wet gravity process. The beneficiation methods to be further assessed in future programs are widely used in iron ore processing in the Pilbara and globally in mineral sands production. In contrast to Pilbara iron ore beneficiation processes where most are seeking to reduce alumina and silica in the final product, for this project the beneficiation process is only about reducing silica in the final product. The mineralisation of Simandou Formation Oxide BIF is naturally very low in alumina.
MOU Key Terms;
- The MOU is non-binding, except in relation to selected clauses relating to disclosure, confidentiality and costs.
- The parties will meet monthly to progress all key elements of discussions relating to the negotiation and implementation of a binding mine gate sale agreement.
- Key elements of the mine gate sale agreement to be negotiated include but are not limited to stockpile logistics, product specification and pricing.
*To view the announcement, please visit:
https://abnnewswire.net/lnk/TCSS059M
About Arrow Minerals Ltd
Arrow Minerals Ltd (ASX:AMD) is an exploration and development company focused on delivering long-term shareholder value through the discovery of economic mineral deposits in West Africa. The Company has implemented a systematic science-based exploration philosophy whilst remaining commercially nimble to ensure we capture and retain value.
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