Genmin Limited, a prominent African iron ore exploration company, has officially inked a crucial non-binding memorandum of understanding (MoU) with China's leading steel producer, Baosteel Resources. The strategic move paves the way for a potential offtake agreement, set to solidify the partnership between the two entities. The anticipation is that a legally binding offtake agreement will be formalized no later than December 31, 2024.
Under the terms of the impending binding offtake agreement, Genmin Limited is committed to delivering an annual supply of 1.2 million tons of Fines, along with 0.5 million tons of Lumps and 0.4 million tons of Pellet Feed products sourced from Baniaka. The agreed-upon term for this substantial supply arrangement spans two years, emphasizing the long-term nature of the collaboration.
This recent development marks Genmin's fourth non-binding MoU, further solidifying its position in the global market. The company has previously secured a three-year agreement with international trading powerhouse Minmetals and a separate two-year MoU with three influential steelmakers, namely Jianlong, Hunan Valin, and now, the latest addition, Baowu.
Industry experts speculate that this latest partnership between Genmin and Baowu is poised to make a considerable impact on the iron ore supply landscape, as both companies bring their respective strengths to the table. n ore industry.
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