In 2024, Gabon boosted its revenue significantly due to manganese production, with a 5.8% revenue increase to over $1 billion. The rise was driven by a 16.7% hike in manganese ore prices, amidst rising global demand. However, exports fell by 7.7% due to logistical issues. Eramet proposed plans to support mining operations in response to these challenges.
Gabon experienced a notable increase in revenue in 2024, primarily driven by its manganese production. This growth is attributed to higher manganese output, which significantly contributed to Gabon’s income. Manganese is crucial for industries such as steel and battery manufacturing, positioning it as a vital component in Gabon’s economic landscape. Reports indicate that revenue from the manganese sector grew by 5.8%, escalating from $978 million at the close of September 2023 to over $1 billion in 2024.
The primary reason for this revenue increase is a substantial 16.7% rise in manganese ore prices during the review period. Global demand fluctuations, supply chain challenges, and the mineral’s enhanced significance in emerging sectors, notably electric vehicle (EV) battery production, played a key role in the price surge. Gabon’s manganese output has steadily improved, showcasing advances in mining capacity and operational efficiency, with total production reaching 7.5 million tonnes between January and September 2024—a 10.7% increase from the previous year’s figures.
Despite the rise in production, Gabon encountered a decline in manganese export volumes. Data from the Ministry of Economy revealed that manganese exports fell by 7.7% in the first nine months of 2024, totaling 6.3 million tonnes compared to 6.8 million tonnes in the same timeframe of 2023. This reduction in exports implies that logistical difficulties, geopolitical instability, and market volatility may have hampered trade activities.
In light of these challenges, Eramet, the parent company of Comilog, which focuses on manganese mining and processing, presented a proposal to Gabon’s president aimed at bolstering its operations within the nation. This plan is likely a response to the volatile dynamics of manganese prices and international demand.
Manganese serves as an essential mineral for steel manufacturing and battery production, notably in electric vehicles. Gabon has become increasingly focused on its manganese mining industry, which is crucial for its economic growth. However, the industry faces a dual challenge of rising revenue from higher output and prices, contrasted by declines in export volumes due to external market factors.
Gabon’s revenue growth in 2024, primarily attributed to increased manganese production and prices, indicates the mineral’s significance in the nation’s economy. Nevertheless, declining export volumes highlight existing logistical and geopolitical challenges. The strategic proposals from Eramet to support Gabon’s operations suggest potential pathways for navigating these obstacles while sustaining economic momentum.
Original Source: newscentral.africa
