MINING IN AFRICA SPECIAL — Gabon updating mining

The increased interest in Africa’s mineral potential has prompted the government of Gabon to consider updating the mining legislation which it had adopted after independence in 1960.

Situated on the west coast of Central Africa and straddling the equator, Gabon ranks as one of the richest African states, thanks to its numerous natural resources, in particular oil, timber and minerals. While the country is politically stable compared with other sub-Saharan countries, it is extremely dependent upon oil production.

Stephane Brabant and Betrand Montembault-Heveline, lawyers for the consulting firm of Price Waterhouse, say the Gabonese government is aware of the need to diversify its revenues and has given priority to improving the economic, legal and tax framework for mining in the country.

Important deposits of manganese and uranium are already being mined on a large scale by two major mining companies. But Price Waterhouse reports that many of the country’s potential mineral resources have yet to be explored and exploited.

Gold and diamond deposits have been identified in many areas of the country, and other minerals and commodities (such as lead, zinc, barite, magnesite, sulphur, iron and bauxite) have been identified.

There have been calls for the current mining legislation to be updated on the grounds that parts of the code are no longer considered useful and have fallen into disuse. It is believed that amendments are particularly required with regard to agreements entered into at the exploration stage. The traditional system grants to concession-holders rights of almost unlimited term. Expectations are that changes will be made to limit the term of concessions to a certain number of years, and that new legislation may also include detailed work obligations.

Gabon is part of French Equatorial Africa. French is still widely spoken and Roman Catholicism is considered a main religion.