Opportunities 2017-2020 Mining Sector

OPPORTUNITIES 2017-2020 MINING SECTOR

INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON

1 STRATEGIC ENVIRONMENT

Gabon has a subsoil with enormous potential in mineral resources: iron, manganese, gold, diamond, niobium, rare earths and phosphates. The country is the world’s second largest producer of high quality manganese ore.

However, the mining sector in Gabon is essentially based on the exploitation of two substances: manganese and gold; and contributes modestly to the national economy with about 4% of GDP. The occupied mining sector represents 60,000 km2, or 22% of the national territory. Significant growth prospects remain.

In order to make this sector a major pillar of its economy, Gabon has defined a strategic orientation: the optimization of value added through local processing and the diversification of mineral exploitation.

This document presents Gabon’s mining potential and offers investment opportunities in the sector.

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2 INCENTIVE TAX MEASURES

Law N° 017/2014 of 30 January 2015 regulating the mining sector in the Republic of Gabon has in its title XVII fiscal measures in favor of actors operating in the mining sector in Gabon.

DIRECT AND INDIRECT TAXATION APPLICABLE TO RESEARCH TITLES IN THE MINING REGIME AND THE SAND QUARRY REGIME

Exemption from VAT • For the acquisition of the goods Exemption Exemption (excluding goods Exemption necessary for the realization of from the flat- from the excluded from the right from the activities. rate minimum contribution of to deduction by the corporation tax • For the services provided by tax patents provisions of the CGI) the mining subcontractors.

exemption buildings other than Exemption from on acts increasing capital and on professional from land taxes dwellings registration fees leases (excluding dwellings)

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DIRECT AND INDIRECT TAXATION APPLICABLE TO RESEARCH TITLES IN THE SAND QUARRY REGIME

Exemption from corporation tax and the During 2 years Exemption from corporation tax

DIRECT AND INDIRECT TAXATION APPLICABLE TO RESEARCH TITLES IN THE MINING REGIME AND THE SAND QUARRY REGIME

For mining projects> 10 years : Exemption from corporation exemption during the first 5 years. VAT EXEMPTION Possibility of VAT refund Practice of accelerated tax and the Exemption from For mining projects> 20 years : depreciation corporation tax the period of 5 years can be extended for a period of 3 years. For the elements For depreciable During the period necessary for the goods imported and of validity of their activity under the not available on the titles • Deducting provisions for reconstitution conditions fixed by domestic market. • Deposit ; the CGI. Constitution of provisions • Deduct the provision for a material renewal fund ; deducted from taxable profit • Deduct partners’ current account interest ; • Deduct the sums paid as contributions to the various funds provided by the law ;

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3 LEGAL FRAMEWORK

Strengthen good governance and transparency in the management of the mining sector

GREAT ATTRACTIVITY Code : take into account the social responsibility of mining companies and sustainable development ATTRACTIVITEMINING CODE FEATURES Simplify and ensure the clarity of procedures

Simple • Provides easy access and an understanding of regulations and administrative procedures Ex. Exploration permits signed by the Minister of Mines versus the Head of State in the old Code

Flexible ATTRACTIVENESSATTRACTIVITE • Takes into account the constraints of the sector Ex. Adoption of a period of fiscal vacancy + or - long depending on the specificity of the mining projects

• Secures investments by stabilizing rights and fiscal incentives during the mining cycle Stable (exploration, exploitation and closure) Ex. guaranteed mineral rights acquired even when the economic conditions of the moment do not allow its development.

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4 TYPES OF AUTHORIZATIONS AND MINING SECURITIES

AUTHORIZATIONS AND MINING SECURITIES Law N° 017/2014 of 30 January 2015 regulating the mining sector in the Republic of Gabon provides all the rules governing the mining sector in Gabon. Titles IV and V of the law present all the regulatory provisions for obtaining authorizations and mining titles.

MINERAL AUTHORIZATIONS

Types of authorizations Duration Renewal Area Amount (FCFA)

The prospecting authorization One year (1) Non-renewable 500.000

The authorization of temporary quarry exploitation and can not exceed 10 Two years (2) Renewable 1.500.000 the authorization to operate the borrow pits ha Renewable within the The license to operate a public utility quarry One year(1) limits of the necessary volumes Renewable as many times Authorization to exploit releases Five years (5) 2.500.000 as needed

The authorization of earthworks Six years(6) Non-renewable

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MINING TITLES

Types of authorizations Duration Renewal Area Amount (FCFA)

Permit to search for substances in the Renewable twice for the 1,500 Km2 // 5000 3 1 500 000 mining regime same duration Km2 for diamonds RESEARCH PERMIT Permit to search for substances in a 10 sqaure 1 750 000 quarry sand system kilometers

License to exploit the small mine 5 Renewable 2 500 000 Permit for permanent exploitation of Can not exceed 5 Renewable 2 000 000 quarry materials 100 ha Renewable as many times Permit to permanently exploit quarry Can not exceed 10 as needed in a 5-year 10 000 000 materials for industrial purposes 100 ha period OPERATING LICENSE Renewable as many times Can not exceed Permit to mine substances in the 10 as needed in a 5-year 1,500 square 10 000 000 mining regime period kilometers Can not exceed Renewable for one or Mining Concession 25 1,500 square 30 000 000 more periods of 10 years kilometers

PROCEDURES FOR OBTAINING AUTHORIZATIONS AND MINING TITLES Find the administrative procedures for obtaining certain authorizations and mining titles on the anpi website (www.gaboninvest.org)

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Contacts

Ministry of Mines,

Jean Paul II Avenue, Building of December 2nd B.P. 576 Libreville Tél.: +241 01 76 46 72 www.mines.gouv.ga Géoportail /informations géoscientifiques www.gabon-mines.org

Direction Générale de la Géologie et de la Recherche Minière [email protected] Tél.: +241 01 73 36 42

Direction Générale de la Propriété et de l’Exploitation Minière Tél.: +241 01 76 35 56 / 01 76 10 81

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13 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON

INFRASTRUCTURE

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A of Oyem I

I of Nkok of Owendo I of Oloumi

N5 GENE I A N2 Léon Mba N4 lnternational Airport

N3 N1 Airport I A N2 Ali Bongo Ondimba

Port in deep water

Hydroelectric dam N1 N3 Future Industrial Zone

of Port-Gentil N6

Mandji Optical ﬁber (CAB4) N1

Railroad N6 Main road network

N6 I A

N6 of Mvengué

of Mayumba I 15 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON

PANORAMA BUSINESS OPPORTUNITIES

Iron deposit p.18 Other deposits p.24 Airborne Geophysical Survey Project p.32

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17 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON

IRON DEPOSIT

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S OOIGE BINGA ONT BIAN 1 illion de tons 1 billion tons 384 o steel o steel

N5 BATOAA Owendo 11 illion tons N2 N4 o steel

BOABOA

N3 1 illion de tons N1 N2 2 o steel

S OBIOBI 1 illion tons

N1 34 o steel

N1 A

A S BANIAA

1 illion tons P o steel N6 S OBIT AGNIA H IINGI 1 illion tons 4 o steel 13 illion tons N6 3 o steel R

M 19 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON BELINGA PROJECT

Objectives Make Gabon a privileged area for iron mining and a meeting point for experts from the world steel industry

Development BÉLINGA and financing It would be interesting to explain that within the framework of the SDNI an needs infrastructure program has been dedicated to the Belinga site. It includes the following projects: • Operating infrastructure at the Belinga site • The Belinga - Port Gentil railway line (650 km) for the transport of iron • The mineral terminal at Port Gentil • Makokou - Belinga Road (45 km) • The construction of a Booué hydroelectric dam (600 MW)

Localisation 1 Province(s) : Ogooué-Ivindo 2 City (s) nearby : Makokou 3 From Libreville : 535 Km

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Mineralization and reserves The Belinga deposit is largely dominated by BIFs that are outcropping in western Central Africa. • The deposits are composed of magnetite and hematite units GOOD TO KNOW • World class, with reserves estimated at more than one Since 2014, the Government has been conducting an billion tons. independent re-evaluation of the resources of this deposit in accordance with international standards. As such, SRK • Tonnage: + 1 billion tons (Geological Engineering Cabinet) was engaged. The work of the • Description of content: High grade DSO 1st evaluation phase (of the two planned) is in progress.

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OTHER DEPOSITS

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Uranium and manganese

Indutrial Gold Steel

Area of potential mineral resources (Steel, uranium, PGE, gold, diamond) Managed protected areas 23 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON DOUREKIKI DEPOSIT Barytine Substance

Geology and Tectonics • The geological setting of the Dourekiki barite deposit is basically a gray granite with slightly oriented biotite. Then we observe a succession of conglomerate levels, gress conglomeratic, sandstone, argillite and Cre- taceous sil levels. These formations are located outside DOUREKIKI but on the edge of the Nyanga syncline. • The barite outcrops in the form of chippings, blocks of all sizes, or fine millimetric crystals in a clay-sandy gangue

Development and financing needs Market studies undertaken in the 1980s are no longer rele- Localisation vant. The Chinese offer remains very strong today in the field of drilling muds. It may be necessary to determine new barite Province(s) : Ngounié 1 volume requirements beyond the West African oil markets 2 City (s) nearby : Tchibanga and determine a range of prices in these exchanges. 3 From Libreville : 572 km

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Mineralization and reserves • The barite deposit of Dourekiki is of eluvial type, spread over an area of more than 25ha. CONCLUSION • The average power of the mineralization is 5 m, but locally it can reach 15 m. Several heteroge- neously associated facies were observed: banded or brecciated barite (dominant), barite crystals in a ferruginous gangue, «stony» grained bark of white, yellow or pinkish color, barite with fine minera- • Update of the economic study for the lization in a clayey gangue . construction of a port in Mayumba • Reserves of more than 1.2 Mt of recoverable barite concentrate with an average all-out grade of • Environmental Impact Assessment - 46% BaSO4 and one at 65% representing half of the reserves. Opportunities for Sustainable Development

25 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON DOUSSE OUSSOU SAND QUARRY Marble Substance

Geology and Tectonics These are the «Schisto-Limestone» formations that make up the majority of the Nyanga basin. The lower layers consist of a large fraction of magnesian limestone

Development and financing needs • Geological retail survey, reserve de nition surveys, treatment trials DOUSSEOUSSOU • Financing needs: 500,000,000 FCFA

Localisation 1 Province(s) : Ngounié 2 City (s) nearby : Tchibanga 3 From Libreville : 572 Km

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Mineralization and reserves On the SW side of the syncline, where the degree of metamorphism is much higher than on the north-east CONCLUSION GOOD TO KNOW flank, the limestones have been transformed into marble showing marmorations, banding structures, crenulations and an intense degree of recrystallization, giving a Several infrastructures saccharoidal texture. This tile marble would be have been built in recent The Dousseoussou deposit has been recognized and perfectly suited for use in public years: Libreville-Tchi- has been the subject of industrial exploitation. But for buildings. Its siliceous nature banga-Mayumba roads; reasons of profitability, caused by the lack of appropriate could allow its use in places with bridge and port of Mayum- escape routes, activity stopped. strong pedestrian crossing ba, for the evacuation of products; Geological reserves are important in relation to the extent of the geological formation.

27 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON MINKÉBÉ DEPOSIT Gold Substance

Geology and Tectonics Volcano-sedimentary and ferriferous furrows (Belinga Group) with: • Basic rocks, schists, conglomerates, ultrabasites, paragneisses, leptynites • BIF: ferruginous quartzites.

MINKÉBÉ Development and financing needs A need of 5 to 10 billion FCFA is planned to carry out tactical prospecting, resource evaluation and socio-economic studies.

Localisation 1 Province(s) : Woleu-Ntem 2 City (s) nearby : Minvoul 3 Par rapport à Libreville : 712 km

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Mineralization CONCLUSION and reserves • Presence of numerous alluvial gold showings and important arti- GOOD TO KNOW sanal mining activity The aspects of securing the site, conservation • The site called «Minkébé» was the subject of an elusive rush in For a better knowledge (Minkébé park) as well the 2000s. More than 8 tons were produced there. of the sector the realiza- as the surrounding tion of a high-resolution The presence of ferruginous lithologies (BIF) appears to be a key factor communities are to be geophysical survey in the in the formation of these gold deposits and the possibility of finding taken into account in the area is essential. significant gold-bearing ore bodies and thus making them world-class decision-making process primary deposits. of investing.

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5 PROJECT OF AEROPORTICAL GEOPHYSICAL SURVEY

Zone Contact socle-Basin Sedimentary Nkol Accident Zone, Belinga-Batouala-Minkébé, Crystal Mountains Contact between the sedimentary and the basement is marked by Permian or Cretaceous stratigraphic sites in contact with Paleoproterozoic rocks. The The Nkol accident is visible by the radiometric signature and has a magne- rocks often encountered are breaches surmounted by conglomerates with pink tic anomaly. The characteristics rock date from the Archean, in this case un- granitoid pebbles surmounted by sandstones. Note the presence of sometimes differentiated granitoids of the North-Gabon Massif. We note the presence of graphitic black shales, silty or black pelites. greenstone belts depends on iron and sulphide mineralization. Targeted mineralization : Phosphates, Potash, Base Metals (Pb-Zn ...), Gold Targeted mineralization : Itabirites, gold, precious metals, sulphides, and dia- Barytine monds (in the Mitzic area). Methods : Aero-magnetic, electro-magnetic, gravimetric. Methods : Gravimetric

Ikoy-Ikobé area Objectives :

Make a high-resolution regional airborne lift on the above areas to directly ge- The Ikoy-Ikobé accident corresponds to a shear resulting in the emplacement nerate targets for survey and other development studies. of Lower Proterozoic rocks, of the crystallophyllian series of Ogooué strongly remobilized with Eburnean. Targeted mineralization : Gold and related substances. Financement: Methods : Electro-magnetic, Radiometric. PPP partnerships are favored :

• Geophysical companies • Investment Funds; • Mining companies The results of the work will give rise to allocations of mining rights for which the investor will have the full right of priority.

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Bélinga-Batouala-Minkebé

Ikoy-Ikobe

Base-basin

Crystal Mount

Nkol

Protected areas

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Gabon is a country located in Central Africa, crossed by the equator, bordering the east, south- ADMINISTRATIVE DATA east and south of the Republic of Congo, north-west Equatorial Guinea and north of Cameroon. Name of sky : Gabonese Republic Former French colony, Gabon is independent since 1960. Type of scheme : Republic Head of State: Ali Bongo Ondimba National Day : August 17 OCÉAN Official language : French ATLANTIQUE Administrative capital : Libreville Economic capital : Port-Gentil Administrative division : 9 provinces, 50 departments, 50 municipalities, 26 districts.

GEOGRAPHIC DATA Area : 267 667 km² Main cities : Libreville, Port-Gentil, Franceville Great woodland : 22 million ha (87% of the national territory) Main river : Ogooué (1200 Km) Highest point : Mont Iboundji (1575 m)

DEMOGRAPHIC DATA Population : 1,8 million (2013) Density : 6,7 hab/km² Population growth : 1,96 % (PNUD) Average age : 18,6 ans Life expectancy (2015) : men : 65 years, women : 67 years (WHO) Literacy rate (2015) : 83% (World Bank) Religions : Christianity (85%), islam, animism Human Development Index (2016) : 0,697 (UNDP)

ECONOMIC DATA Currency: Franc CFA (exchange rate : 1€ = 656 FCFA (xe); $1 = 500 FCFA (variable)) GDP (2016) : 14,214 billion US $ current (World Bank) GNI per capita (2016) : US $ 7 210 current (World Bank) Growth (2016) : 2,3% (World Bank) Inflation (2016) : 2,1 % (IMF) Imports (2015) : CFAF 1,733 billion (Gabonese customs) Exports (2015) : CFAF 3,116 billion (Gabonese customs) Doing business ranking 2017 : 164th/190 Subregional organizations of which Gabon is a member: CEMAC, CEEAC 34 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON

ROADS ENERGY PORT Million 9170Km 611Mw 10tons of land transport network, including of installed electricity production of annual processing capacity of the mineral terminal of the new 1572Km 300Mw international port of Owendo of paved roads under construction Million 3tons annual processing capacity of RAILWAY TELECOMMUNICATION the trade terminal of the new international port of Owendo 710Km 1595Km crossing the gabon from west to of fiber optic network installed Million south-east 2.5tons annual processing capacity of Owendo port