Arrow Minerals has signed a memorandum of understanding (MOU) with Baosteel Resources for potential iron ore mine gate sales from Arrow's Simandou North Iron Project in Guinea, West Africa.
The MOU outlines a framework for collaboration, subject to further project development and definitive agreements.
The MOU is a significant step towards accessing the benefits of the Simandou multi-user railway, Arrow Minerals said.
Although non-binding, the MOU includes provisions for confidentiality, disclosure and costs, and mandates meetings to advance towards a binding mine gate sale agreement.
Key elements of the mine gate sale agreement will include stockpile logistics, product specifications and pricing.
The Simandou North Iron Project has an estimated exploration target of between 281 and 716 million tonnes at 33–46% Fe.
The Simandou North Iron Project, covered by exploration permit 22967, is situated at the northern end of the Simandou Range.
This area is an extension of the stratigraphy hosting the combined Simandou project, which boasts mineral resources totalling 4.7 billion tonnes with a 65.5% iron grade.
Arrow managing director David Flanagan said: “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.
“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 10,309m, culminating in an exploration target announcement and the intention to move to resource drilling and scoping studies in 2025.”
Earlier this year, Arrow Minerals acquired the remaining 66.7% stake in Amalgamated Minerals, which holds the Simandou North Iron Project.
