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West African energy development company Gasol plc has entered a strategic partnership with Switzerland-based African Iron Ore Group Limited (AIOG) to provide liquefied natural gas (LNG) for mining projects in western Africa
AIOG is currently developing iron ore projects in central and west Africa, focusing on the region's requirements for rail and port infrastructure and highly prospective new mining projects.
”We welcome this strategic partnership agreement with AIOG, which we believe can provide us with gas to power opportunities for the beneficiation of iron ore within our key West African market," said Alan Buxton, CEO of Gasol.
Gasol stated that the partnership had been agreed for an initial term of two years, which would be extended by another two years if a project is finalised within the initial time period. When a potential project is identified that Gasol wishes to participate in, it will enter into specific agreements with AIOG relating to that project.
The company also said that it would pay US$2.5mn to AIOG as an advance on the initial US$2.5mn introduction fee.
Gasol also said that it would repay the advance with an interest of 15 per cent if no projects are signed within two years.