Capital awarded major contract in Gabon
Capital has been awarded a major mining contract by Fortescue Metals, for earth moving and crushing services at the Belinga iron-ore project in Gabon.
The contract between Fortescue Metals and Capital will span five years and once the project reaches full operational capacity, Capital is expected to generate revenues of up to $30 million per year. Capital will utilize existing equipment and is in the process of acquiring an additional $15 million worth of equipment.
Equipment mobilization has already begun at the project site. This mining and crushing services contract is in addition to a previously announced three-year contract for reverse circulation and diamond drilling services at the same site, where drilling activities have recently started.
Belinga project
The Belinga project is estimated to require an initial capital investment of $200 million for the early stage of operation, with investments scheduled to occur during 2023 and 2024. The project will involve a conventional open-pit mining operation, with ore transportation taking place via trucking and rail over existing infrastructure. The ore will be shipped from the Owendo Mineral Port, located near Libreville.
Ivindo Iron, the operator of the Belinga project, is 90% owned by the Belinga joint venture company. The joint venture is structured with Fortescue holding an 80% stake and its partner, the African Transformation and Industrialization Fund, holding the remaining 20% interest. According to the Gabon Mining Code, the Gabonese government will hold a free carry interest of 10% in Ivindo Iron.
