Eramet to Invest $286 Million in Gabon Manganese Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a recent announcement, integrated mining and metallurgical company Eramet SA (EPA:ERA) (Paris, France) and the government of Gabon said that Eramet would be investing $286 million to set up a manganese plant at the Comilog Metallurgical Complex in Moanda, about 400 kilometers from Gabon's capital city Libreville. Comilog (Moanda) is a 67:33 joint venture company formed by Eramet and the government of Gabon. The upcoming manganese plant will be designed to produce 20,000 tons per year of manganese and 65,000 tons per year of silico-manganese alloy, which is used in the production of steel. The first stone of the project was laid in April 2009 by the late president Omar Bongo. Bongo's death and the ensuing elections delayed the project by several months. The manganese plant is now expected to be completed by 2013-14.

President Ali Ben Bongo of Gabon is aggressively pursuing his policy of diversifying the country's economy from oil. Other than oil, Gabon is rich in timber and manganese reserves. An important developmental project for Gabon, the new manganese project is expected to create about 1,000 employment opportunities.

The manganese division of Eramet, through Comilog, is the second-largest producer of high-grade manganese in the world. The company produced 3.25 million tons of manganese in 2008. Gabon intends to achieve production of 4 million tons per year by 2010. The prices of manganese ore and alloys have seen an increase since the first quarter of 2008, and demand continues to rise. At present, manganese from Gabon accounts for almost 25% of the global supply. The Moanda reserve is believed to have deposits of about 200 million tons. Manganese from Gabon is exported to France, Japan and the U.S.

In July 2008, the government of Gabon and China National Machinery and Equipment Import and Export Corporation (Beijing) signed an agreement under which an 85:15 joint venture company would operate Gabon's Belinga iron ore mine for a period of 25 years. The mine is reported to have a production capacity of 30 million tons per year and is located about 500 kilometers east of Libreville. The Belinga mine is one of the world's richest iron ore mines. The project, however, has faced a great deal of opposition regarding its social and environmental impact. In fact, the international campaign against the project became so strong that the government was forced to suspend the project temporarily.

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