FSUMF - Fortescue eyes first mining at Gabon iron ore project in H2

Fortescue Metals ( OTCQX:FSUMF ) said Wednesday it entered into a deal with Gabon's government to start mining the Belinga iron ore deposit in this year's H2, after agreeing to legal, fiscal and regulatory regimes for the project.

The company said the mining convention it signed allows for production of as much as 2M metric tons/year of iron ore while a potential larger-scale development is studied; the project is expected to cost ~US$200M during 2023-24.

Belinga will be operated by Ivindo Iron SA, which is owned 90% by a joint venture in which Fortescue ( OTCQX:FSUMF ) holds an 80% stake while the rest is owned by an Abu Dhabi-based fund.

Fortescue ( OTCQX:FSUMF ) said an early-stage exploration of Belinga shows similar grade and scale characteristics to Guinea's massive Simandou iron ore project at comparable stage; work on Simandou is set to restart in March .

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