Arrow Minerals has officially signed a memorandum of understanding (MoU) with Baosteel Resources to explore potential iron ore sales from its Simandou North Iron Project in Guinea, West Africa.
The MoU outlines a framework for collaboration that is subject to further project development and definitive agreements. Arrow Minerals stated that this agreement is a significant milestone in leveraging the advantages of the Simandou multi-user railway.
While the MoU is non-binding, it includes provisions for confidentiality, disclosure, and associated costs. It also establishes requirements for meetings aimed at progressing toward a binding mine gate sale agreement. Key elements of this future agreement will focus on stockpile logistics, product specifications, and pricing.
The Simandou North Iron Project is estimated to have an exploration target ranging from 281 to 716 million tonnes, with an iron content between 33% and 46% Fe. Located at the northern end of the Simandou Range, the project falls under exploration permit 22967 and is part of a region that hosts the combined Simandou project, which boasts total mineral resources of 4.7 billion tonnes with a 65.5% iron grade.
David Flanagan, managing director of Arrow, emphasized the extensive efforts and financial investments made by all joint venture partners, including BaoWu Group, in developing the Simandou Iron Project, which is expected to be commissioned by late 2025. He noted that the proximity of Blocks 1 and 2 of the Simandou Iron Project to Arrow’s Simandou North Iron Project creates operational synergies. He added that future mine gate sales will enable Arrow to access markets effectively and align optimally with neighboring operations.
Since launching field activities at the Simandou North Iron Project in 2023, Arrow has drilled 521 holes totaling 10,309 meters, culminating in the announcement of an exploration target. The company intends to move toward resource drilling and scoping studies in 2025.
Earlier this year, Arrow Minerals acquired the remaining 66.7% stake in Amalgamated Minerals, which oversees the Simandou North Iron Project.
