Gabon starts talks on massive Belinga iron ore mining

Mining boom

Gabon already mines manganese, used in the production of stainless steel. Nze-Bekale said that mining could account for as much as 30 percent of Gabon’s GDP by 2030 versus 4 to 6 percent currently.  Oil accounts for around half of Gabon’s GDP. But despite its large oil and mineral reserves, a third of its 1.5 million people live in poverty.

Under a broad strategy outlined by President Ali Bongo, Gabon aims to industrialize its economy and process more of its commodities locally, including oil, manganese and timber.  Mining production is expected to grow by 12.5 percent this year, according to documents for a bond issued in late 2013.

Nze-Bekale said Gabon’s COMILOG manganese site, which is majority owned by French miner Eramet, would boost output by 400,000 tons to 4 million tons this year.  Minister Immongault Tatagani said that companies with the capacity to transform raw materials would be given priority in negotiating new concessions.

He then stated,”We want to choose operators who buy into our logic. Our goal is not only to have quick exploitation of the sites but also to use an industrial model.”  SEM said that one of its major objectives was to build a $500 million gold fund, using gold from artisanal mining as well as purchases from private operators.  Nze-Bekale went on to say, “The grand idea is for the state to gradually build its own strategic reserves of gold that could be used as collateral if we want to raise international financing at a cheaper cost or to stabilize the economy if we go through a crisis.”