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Gabon Mandates Local Processing of Manganese by 2029

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Gabon Manganese Processing

Libreville, Gabon — The Gabonese government has announced that by 2029, all exported manganese must undergo at least initial processing within the country. This decision aims to boost job creation and advance industrial development.

Gabon is the second-largest producer of manganese globally, primarily extracted by French group Eramet. Currently, Eramet processes only a small fraction of the ore locally.

Eramet runs processing units in the United States, Norway, France, and in Gabon. The local processing is managed by its subsidiary, Comilog, which is partially owned by the Gabonese state. Comilog operates two facilities: the Moanda Metallurgical Complex and the Moanda Industrial Complex (CIM), capable of processing around 20% of the manganese extracted.

However, last year, Gabon only exported 18,000 tons of silico-manganese, less than a third of what Eramet’s facility can process, according to Argus Media. An expert in the industry expressed skepticism about whether this new mandate can be fulfilled on time. He described the decision as “hasty,” noting that essential prerequisites are not currently in place.

A significant concern remains energy availability. Gabon has faced numerous power outages over the past year due to insufficient energy capacity. This raises questions about whether mining companies like Eramet have the financial means to invest in the necessary local transformations.

Industry analysts, such as those from ODDO BHF, express doubt about the capability of firms like Eramet, the Chinese CICMHZ (Hangzhou Industrial Mining Company), and NGM (New Gabon Mining), part of the Indian Coalsale Group, to fund the required investments. Following the announcement, Eramet’s stock reacted negatively, though the price of manganese remained stable.

The outcome of these developments could impact the global market, as Gabon produces about 20% of the world’s manganese. Any local disruptions could have wider repercussions in the industry.