Genmin Limited announced that it has signed a long-term power purchase agreement (Power Agreement) with SdP for the supply of renewable hydroelectricity to its 100% owned Baniaka iron ore project (Baniaka), located in the Republic of Gabon, west Central Africa. The renewable hydroelectricity will be provided from the Grand Poubara Hydropower Station (Grand Poubara) located on the Ogooué River, approximately 35km north-east of Baniaka. On 11 April 2022, Genmin and SdP, Gabon's State-owned utility overseeing Grand Poubara, signed a Memorandum of Understanding (MoU) for the supply of renewable hydroelectricity for Baniaka. The MoU set out the framework for the parties to enter into the long-term power supply agreement. A cooperative and committed negotiation process resulted in the efficient finalisation of the Power Agreement, which was signed in Libreville yesterday. The key terms of the Power Agreement for Baniaka are summarised below. Initial 20-year contract term, extendable on mutually agreeable terms beyond the initial term; The initial supply term does not commence until certain conditions have been satisfied including Genmin receiving financing and all necessary permits and approvals to develop Baniaka and operate the OHTL; A fixed and variable tariff structure that results in an overall projected cost of less than USD 10 per kilowatt hour; Genmin will supply and install the step-down transformer at the Grand Poubara transmission yard, as well as construct, own, and maintain the OHTL between Grand Poubara and Baniaka, providing control of the build-time and guaranteeing a dedicated electricity supply; Reserved capacity may be increased from 30MW to 50MW from the sixth operating year onwards, subject to an expansion of Baniaka and provided water flow rates at Grand Poubara support such supply; and Standard termination rights for an agreement of this nature, including a right for either party to terminate in the event of extended force majeure and a right for SdP to terminate for repeated failures by Genmin to pay invoices. Grand Poubara is located approximately 20km from the city of Franceville at Poubara Falls on the Ogooué River
(Figures 1 and 2). The operation, which is located approximately 35km north north-east of Baniaka and has a total capacity of 200MW. Sinohydro Corporation Ltd. (Sinohydro) designed and constructed the 160MW expansion with construction commencing in 2008 and the hydroelectric plant coming online in October 2013. Sinohydro currently maintains and operates Grand Poubara for SdP. Currently there are two (2) major transmission lines from Grand Poubara, one to Franceville and the other to Compagnie Minière de l'Ogooué SA's (COMILOG) metallurgical plant near Moanda.