Opportunities 2017-2020 Mining Sector
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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. 4 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 5 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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) 6 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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 ; 7 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 3 LEGAL FRAMEWORK Strengthen good governance and transparency in the management of the mining sector GREAT ATTRACTIVITY ATTRACTIVITEMINING CODE Code : take into account the social responsibility of mining companies and sustainable development FEATURES Simplify and ensure the clarity of procedures • 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 Simple • Takes into account the constraints of the sector Flexible Ex. Adoption of a period of fiscal vacancy + or - long depending on the specificity of the mining projects ATTRACTIVENESSATTRACTIVITE • Secures investments by stabilizing rights and fiscal incentives during the mining cycle (exploration, exploitation and closure) Stable Ex. guaranteed mineral rights acquired even when the economic conditions of the moment do not allow its development. 8 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 9 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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 10 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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) 11 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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 12 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 13 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON INFRASTRUCTURE 14 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON Airport of Oyem (In the process of rehabilitation) Industrial Zone of Nkok Port in deep water of Owendo 7MW Industrial Zone of Oloumi N5 70MW GENE International Airport 69MW N2 Léon Mba N4 133MW lnternational Airport 56MW N3 N1 Airport International Airport N2 Ali Bongo Ondimba Port in deep water Hydroelectric dam 50MW N1 N3 Port in deep water 52MW Future Industrial Zone of Port-Gentil N6 Mandji Optical fiber (CAB4) N1 10MW Railroad N6 38MW 120MW Main road network N6 6MW International Airport N6 of Mvengué Port in deep water of Mayumba (In the process of rehabilitation) 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 16 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 17 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON IRON DEPOSIT 18 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON Steel of KOKOMIGUEL BINGA deposit MONT MBILAN deposit 100 million de tons 1 billion tons 38-45% of steel 60-65% of steel N5 BATOUALA deposit Owendo 117 million tons N2 N4 66% of steel BOKA-BOKA deposit N3 199 million de tons N1 N2 62% of steel Steel of LOBI-LOBI 100 million tons N1 35-45% of steel N3 N6 N1 lnternational Airport Airport Steel of BANIAKA 100 million tons Port in deep water 60% of steel N6 Steel of KOUMBIT MAGNIMA Hydroelectric dam MILINGUI deposit 100 million tons 45-60% of steel 135 million tons N6 37,5% of steel Railroad Main road network 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 20 INVEST IN GABON I INVESTMENT OPPORTUNITIES IN THE MINING SECTOR IN GABON 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.