AMN - GABON: Comilog manganese expansion validation

Eramet has achieved the internal project validation milestone at the Comilog manganese ore production expansion project in Gabon on schedule. The company aims to increase overall annual production capacity from 4.3 million tonnes to 7 million in 2023.

The validation follows the issuance of operating permits by the local authorities in the past few months as well as major technical and economic studies that have demonstrated the feasibility and high-value creation potential of the project.

Eramet, which plans to establish Comilog as a long-term global leader in the manganese ore market, has started the search for project financing.

The expansion is expected to reduce cash costs by around 20%, increasing Eramet's market share from 10% to 15%.

Based on the technical and economic feasibility studies, investment in Gabon would amount to 640m euros over a 5-year period, with a faster ramp-up of production.

The project economic balance requires confirmation from the Gabonese government to maintain the current legal and tax conditions, and particularly the mining agreement between the Eramet Group and its partner, the Gabonese state.

Furthermore, the project has been subject to a detailed Environmental and Social Impact Assessment (ESIA), conducted in accordance with the most stringent international standards, those of the World Bank. The Gabonese regulatory authorities have issued the certificate of conformity.

To meet the increase in volumes to be transported, a change in the railway renewal strategy was set out at Setrag in order to speed-up works and to increase reliability of freight and passenger transportation.

A final investment decision is planned at year-end, subject to financing.

Eramet has also achieved internal validation for its Centenario lithium development project in Argentina.

Eramet chairman and CEO Christel Bories said: "In Gabon and Argentina, our two projects are conducted according to a rigorous methodology where each phase is carefully managed by the internal teams and their partners.

"I would like to congratulate them on the quality of the studies and the successful relationship built with the host communities and public authorities in the regions involved.

"In line with the Group's two-fold strategic ambition, increasing cash generation and diversifying our business portfolio, it is also crucial that these projects reflect our ambition as a responsible and contributive corporate citizen."

Eramet, a global mining and metallurgical group, is a key player in the extraction and valorisation of metals (manganese, nickel, mineral sands) and the elaboration and transformation of alloys with a high added value (high-speed steels, high-performance steels, superalloys, aluminium and titanium alloys).

www.eramet.com