General

Equatorial Guinea signs first mining contracts

Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) has signed the country’s first mining contracts with three different companies.

According to the Minister of Mines and Hydrocarbons, Gabriel Mbaga Obiang Lima, the mining contracts which are five in total follows the conclusion of the country’s first mining bidding round in 2019.

“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,”

“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,”

“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,” he explained.

The Agreements

The agreements include one gold exploration contract with Manhattan Mining Investment Company, three prospecting contracts with Blue Magnolia Ltd for bauxite and precious metals, for gold, uranium, iron, bauxite, basic metals and rare earth minerals

And one prospecting contract with Shefagold for platinum, palladium, silver, chrome, copper, magnesium, phosphorus, iron ore and related minerals.

It would be recalled that earlier this month, the Ministry of Mines and Hydrocarbons had published a new regulatory framework for mining operations in the country.

The new regulation applies to all exploration 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.

Source: Voice of Nigeria