Launched on Sunday 16 October in Makokou in the province of Ogooué-Ivindo, the exploration phase of the Belinga iron deposit will last three years and will require an investment of $90 million (about 58.8 billion FCFA).
The ceremony took place in the presence of Deputy Prime Minister Alain-Claude Bilie-By-Nze, the Minister of Mines Elvis Ossindji and several notables from the capital of Ogooué-Ivindo.
«The exploration launch phase that we are inaugurating is decisive in the process that should eventually lead to the possibility of developing the Belinga iron deposit,» said Elvis Ossindji.
The exploration will be conducted by the Australian mining group Fortescue Metals Group, which holds a permit. It will initially consist of a feasibility study and an evaluation of the logistical solutions required to conduct the project. This exploration phase should last 3 years, according to the Australian mining company’s forecasts, and will cost it FCFA 59.4 billion.
Discovered in 1955, the Belinga iron deposit covers an area of 4,500 km2 with estimated reserves of 1 billion tonnes at a grade of about 65%. These characteristics make the deposit « one of the largest undeveloped high grade hematite deposits in the world » as stated by Fortescue Metals Group CEO Andrew Forrest.
Ripple effects
Beyond its mining potential, the Belinga project has an « integrating » dimension. This means that it has significant knock-on effects on the geographical area concerned. It will contribute not only to the development of the Mvadih district in Ogooué-Ivindo, but also to the entire province. Especially since, as Elvis Ossindji reminded us, the exploitation of a mine requires investment in the construction of infrastructures such as those for access to electricity and water.
«Transport is essential in mining. In this exploration phase, studies for the construction of roads and railways are taken into account. The same goes for the hotel industry, which is necessary for the development of tourism,» he explained.
«This event marks the completion of a historic project that illustrates the commitment of the Head of State to the development of the country’s interior regions and the creation of jobs,» added the National Coordination and Monitoring Council of the Transformation Acceleration Plan (TAP).
Getting out of the rut
In 2006, an operating permit for the Belinga mine was granted to the China Machinery Engineering Corporation (CMEC). This permit was suspended in 2011 by the government following a dispute with the company, the majority shareholder (75%) of the Belinga Mining Company. The project was then abandoned before Fortescue showed interest in 2018 and entered into a mining agreement on 19 August 2022 on behalf of Ivindo Iron SA, a joint venture owned 80% by Fortescue and 20% by the African Transformation and Industrialization Fund (ATIF). In accordance with the Mining Code, the Gabonese state will receive a free 10% stake in Ivindo Iron when operating licences are granted in the future.
By bringing this project, whose beginnings date back to the 1970s, out of the rut, Gabon is pursuing the diversification of its economy but also its move upmarket. As with timber, the objective will not be to export raw ore but to process it in one or more ways to enable the Gabonese economy to move upmarket by increasing the value added produced locally.
