The Ministry of Mines and Hydrocarbons has
signed the very first mining contracts in the country’s history. Five Mining
contracts were signed with three different companies and follow the conclusion
of the country’s first mining bidding round last year, EG Ronda 2019.
The agreements include one gold exploration
contract in Block (I) with Manhattan Mining Investment Co; three prospecting
contracts with Blue Magnolia Ltd in Block (B) for bauxite and precious metals,
Block (K) for gold, and Block (H) for gold, uranium, iron, bauxite, basic
metals and rare earth minerals; and finally one prospecting contract with
Shefagold in Blocks (N) and (O) for platinum, palladium, silver, chrome,
copper, magnesium, phosphorus, iron ore and related minerals.
“Mining is a key contributor to economic growth
and jobs creation across West and Southern Africa, and we truly believe that it
is time that Equatorial Guinea enters the race and starts developing its potential
in minerals,” Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons
said. “The development of this industry is central to the government’s economic
diversification agenda and is expected to create thousands of jobs in the
future,” he added.
Earlier this month, the Ministry of Mines and
Hydrocarbons (MMH) had published a new regulatory framework for mining
operations in the country. The new regulation applies to all exploration and
exploitation activities by both foreign and local companies that wish to
operate in the Republic of Equatorial Guinea. The newly appointed contractors
are expected to start exploration activities at the earliest in the Rio Muni
area, which is highly prospective in minerals such as gold, diamonds, base
metals, iron ore and bauxite.
The move notably aligns with Equatorial Guinea’s
Economic Diversification Policy designed by the Government following its Second
National Economic Conference, and follows the successful approval of the Mining
Law by the National Bicameral Parliament. Given Equatorial Guinea’s heavy
reliance on hydrocarbons to support its economy, mining and minerals are seen
as a key sector to diversify national output, increase revenue generation and
create jobs. Under the ongoing Year of Investment 2020 for instance, the MMH is
promoting key projects in the mining and minerals industry, notably including
an industrial mining area with a gold refinery.
