Arrow Minerals, Baosteel ink MoU deal on iron ore project
Arrow Minerals has made a significant move by signing a memorandum of understanding (MOU) with Baosteel Resources, setting the stage for potential iron ore sales from its Simandou North Iron Project in Guinea, West Africa.
This MOU lays the groundwork for potential mine gate iron ore sales, strategically positioning Arrow to capitalize on the forthcoming multi-user railway infrastructure associated with the broader Simandou project.
Simandou North Iron Project
While the agreement remains non-binding, it sets key parameters for collaboration, focusing on logistics, product specifications, and pricing. This agreement provides Arrow Minerals with a pathway to move towards a binding mine gate sale arrangement, ensuring operational synergies with neighboring projects, particularly Blocks 1 and 2 of the Simandou Iron Project, operated by BaoWu Group.
The Simandou North Iron Project is located at the northern end of the Simandou Range, an area that holds substantial iron ore potential with an estimated exploration target ranging between 281 and 716 million tonnes at a grade of 33–46% iron (Fe).
The exploration progress, including over 521 holes drilled and 10,309 meters of core sampled, underlines Arrow’s commitment to advancing the project towards resource definition and scoping studies, anticipated in 2025.
This follows Arrow’s full acquisition of Amalgamated Minerals, securing total control over the project and solidifying its position in the highly competitive iron ore sector. The proximity to Simandou’s world-class resources, combined with the MOU with Baosteel, enhances Arrow’s prospects for efficient production and export pathways once the project scales up.
