Mining Indaba: mining companies adapt, despite coups [4/5]

2024-02-22 00:10:40

Despite a succession of coups d’état in Africa in recent years, it is “business as usual” for mining companies: business continues and companies are adapting to collaborate on good terms with transitional governments. Essential flexibility to maintain the exploitation of the deposits in which they have made heavy investments.

In Gabon, Eramet temporarily interrupted its operations following the coup d’état of August 30. But everything has since returned to normal and the French group even intends to increase production in the coming years at its Moanda manganese mine, operated in partnership with the Gabonese state.

« Today, operations are running, and they are running welleven rejoices Virginie de Chassey, member of the Eramet executive committee. We work with the authorities, and therefore there are no objective reasons, for the industrialists that we are, who do not play politics, to change the trajectory. »

Puts and reforms

The putschists generally have in mind the income that the mines can unlock. One of their priorities, when they come to power, is often to reassure players in the sector, as in Guinea, or even in Mali. But these changes also bring their share of reforms. For example, the new Mining Code implemented by Bamako does not directly affect the Fekola gold mine already in operation, but has created some problems for B2Gold.

Its CEO Clive Johnson claims to be “ very comfortable there ”, but good collaboration with the government in place. “ The other permits on our belt will depend on the 2023 Mining Code, he explains. We anticipate lower production this year, in part because we were unable to obtain a permit in time to bring in additional material. »

And discretion is required. The French uranium producing company Orano intends to continue its activities in Niger, but has refused to comment on this subject.

Informal sanctions

Furthermore, mining companies must also face the deterioration of the security context: three B2Gold employees recently died in Mali in the attack on a convoy.

In Sudan, the Perseus company acquired a gold mine in 2022, following the coup but before the start of the war. In addition to the risks in the short term, the difficulties also accumulate over time according to Martijn Bosboom general counsel for the Australian group: “ Sanctions are of course a long-term risk. But also “informal” sanctions with suppliers who do not want to deal with the country and banks who do not want to help us send money to pay our employees. In addition, we quickly had to make it clear that we were neutral, that we were not taking sides for any side. »

Partners like the United States continue to insist that the restoration of democracy – which brings more stability and transparency according to them – remains necessary.

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