The Future Minerals Forum's Ministerial Roundtable has convened the world's largest gathering of ministers responsible for minerals, fostering a dynamic discussion on the future of metals among key stakeholders. CNBC Africa's Kenneth Igbomor spoke with Gabon's Minister of Mines, Gilles Nembe, to delve into the intricacies of the industry.
CNBC Africa's Kenneth Igbomor spoke with Gabon's Minister of Mines, Gilles Nembe, to delve into the intricacies of the industry. Let's listen in again. This type of meeting is extremely important because in a nutshell you get the opportunity to meet 15, 20, 30 different ministers of mining on the same location. And to sit down with them, share the experience, share their expertise, get a better understanding of what and how they do things, and bring this experience, this knowledge, back to your own country. So it was extremely important. Second, if you look at the themes that we discussed in this meeting, these are themes that hit home. Literally, we're talking about the future. So the future of our countries, the future of our population, the future of our communities. And if we can make a brighter future for them, even the better. Let's get into the issues about interest here because that's also a very critical part of the conversation. If we're really going to have frank conversations, we have to also balance out the fact that their interests involve geopolitical interests on one hand and also even national interests played out here. And I'd like you to speak to the conversations here and how that was dealt with in the conversations here from the feedback. I'll say the conversation was very frank, very open, very transparent and honest about the key challenges that we're facing. Let's say, Gabon had a change of leadership last year. And one of the first things that President Oligui asked was for us to get a better understanding, a better grasp of the resources, of the richness that created through our natural resources. To lay it out, Gabon started mining about six years ago. But today, six years later, less than 2% of our mining production is transformed locally. So this needs to get us to ask ourselves questions. Why? How can we get a better share of what we're producing? How do we move towards share of prosperity between ourselves, some of the consumers, some of the other partners? Because we look at them as partners, because clearly it is not the case today. To us, it needs looking at various aspects. The first aspect is you cannot control what you don't know. So we clearly need to look at exploration. So Gabon is covered by forest. We have 95% of our territory covered by forest. And we don't necessarily know what's underneath this forest. So we know that we have uranium. Yes, we have diamonds. We have gold. We've been mining manganese for the past six years. We have iron. We have some of the largest deposits of iron in the world, with grades above 65%. And we have so many minerals. But can we size exactly how much we have of each of them? And this is going to be our challenge number one. Challenge number two is transformation. So we need to move from the space where we're shoveling our minerals out and getting little value for them. So we need to move towards transformation. But we need to look at transformation from a different perspective. Gabon is clearly looking at green steel, literally. Let's move from the traditional way of making steel to something that's greener. And in order to do green steel, you need four key components. Component number one is iron. We have some of the largest deposits of iron on the planet. Composite number two is manganese. We are the number one high-grade producer of manganese in the world. We have the manganese. Component number three is power. Gabon has 10 gigawatts of hydroelectricity power potential. So it's really our opportunity to take this potential and grasp it. The last and final component, if you look at resources, is carbon. Gabon, as I said earlier, has 90% of its territory covered by forest. But forest is carbon. So literally, we have the four key components in order to make green steel. Now it's about putting all this together, building the right logistics, and also putting our heads together. Do we have the right skill set? Do we have the right capitals? Do we have the right processes? Do we have the right partners? It's all these things that a meeting like this can actually bring. Because all the key components around this chain are available in this room. I'd like to follow up on my final part of the questions around the outcomes here, specifically the one around financing. In terms of the deliberations here and the feedback from your interpretation of the events here, would you say that we have really moved the notch closer to solving the finance challenge in the critical mineral space? No, clearly not. Actually, we spoke about a lot of things, but not necessarily about financing. We spoke about center of excellencies, which is great. We spoke about meeting together regularly to look at how do we build norms, processes that are better aligned with our needs, which is also great. We spoke about all the different things, but we have not necessarily breached the discussion about how much does it cost and what can we build based on that. We look at this as a gradual step. Literally, if you look back, we come from Gabon. Gabon actually was a former French colony. As a former French colony, we've inherited some of the French codes, some of the French law. The mining law in France started in the 12th century, 1135. They had a major overhaul in the 15th century, around 1450. Then, it's like it was frozen in time. And when you look at a deep heart in the center, it's still the Napoleon Code that we still have, which is 200 years old. Now, it's an opportunity to change things a little bit, because we have our local communities. We have our villages. How do we make sure that they get a share of the wealth that's produced by the soil on which they live? Policy has a lot to do with that. What was the level of development of the national policy in Gabon? Gabon has a pretty solid national policy regarding mines. We call this Code Minier. The mining law was established in 2019. It was established five years ago. It's pretty solid. It's pretty robust. Now, what we need to do is move up the ladder. Literally, going back 20 years ago, Gabon had two mines. Today, Gabon has more than 15 mines. Ten years from now, Gabon will have 25 to 30 mines. But mines are not enough. We also need to transform. And when I look at local communities, every time you open a mine, what do you get? Instantly, you get a road, because mines need roads. You get energy, because mines need energy. You get water, because you need to have water for cooling processes. And then you also get health care by law, education by law. So the key ingredients for development, we have them every time we open a mine. But this is what I call level one. Because, yes, this allows us to help people, help our communities, help to a certain level. But this is not enough. It's like, well, baby, now we know how to crawl. But is our objective in life to crawl? Or can we move up the value chain, up the ladder? And this is where critical minerals come to play. Because if I look at my village, what's the value for my village if someone else on the other side of the planet has the newest smartphone? Very limited value. Because people in my village are aspiring to something different. Now, if the smartphone can allow them to reach aspirations, then we did something. And this is clearly where President Oligi is going. And this is what he has instructed us to do. He said, make sure that 35% of our production is transformed locally. Make sure that more Gabonese, more African get a share of the wealth that's produced. And make sure that you do this in a very cooperative way. It's not Gabon against the rest. It's Gabon inviting the rest. But in a different way, in a different format. Making sure that there is shared prosperity. That every single one benefits.
Theme: Shaping a Sustainable Future: Challenges and Opportunities in African Mining
The Future Minerals Forum's Ministerial Roundtable recently gathered the world's most influential mining ministers, fostering dynamic discussions on the future of metals and minerals. CNBC Africa's Kenneth Igbomor sat down with Gabon's Minister of Mines, Gilles Nembe, to delve into the intricacies of the industry. Minister Nembe highlighted the significance of such gatherings, noting the invaluable opportunity to meet and collaborate with fellow ministers from around the globe. The forum provided a platform to exchange experiences, share expertise, and gain a deeper understanding of the industry's key challenges and opportunities. One of the central themes of the meeting revolved around shaping the future of African countries, communities, and populations. Minister Nembe emphasized the importance of creating a brighter, more sustainable future for all stakeholders involved. The discussions touched upon crucial topics, including the need to address geopolitical and national interests within the mining sector. Minister Nembe highlighted Gabon's recent change in leadership and the government's focus on maximizing the country's natural resources' potential to benefit its citizens. Gabon, a country rich in natural resources, faces the challenge of transforming its mining production locally. Despite having abundant reserves of various minerals such as uranium, diamonds, gold, manganese, and iron, less than 2% of the country's mining output undergoes local transformation. Minister Nembe outlined two key challenges that Gabon must address: exploration and transformation. The country's vast forest cover poses a significant exploration challenge, emphasizing the critical need to assess and quantify its underground mineral wealth. Moreover, Minister Nembe discussed Gabon's vision for sustainable mining practices, particularly focusing on the concept of green steel production. With substantial iron and manganese deposits, along with significant hydroelectric power potential, Gabon is well-equipped to leverage its resources to produce environmentally friendly steel. The minister highlighted the essential components of green steel production, including iron, manganese, power, and carbon derived from the country's extensive forest cover. While the forum extensively covered various aspects of the mining industry, financing remained a significant challenge. Minister Nembe acknowledged that discussions around financing were limited during the meeting. He underscored the need to gradually address this issue and modernize existing mining policies to ensure equitable wealth distribution among local communities. Gabon's mining sector has undergone significant growth in recent years, with an increasing number of mines being developed across the country. However, Minister Nembe stressed the importance of not just mining, but also transforming minerals to add value and create economic opportunities for local communities. He emphasized the government's commitment to enhancing the local mining sector's value chain to foster sustainable development. President Oligi's vision for Gabon's mining industry includes a focus on local transformation, with a goal to ensure 35% of the country's production is processed domestically. This approach aims to empower Gabonese and African citizens to benefit from the country's mineral wealth collaboratively. Minister Nembe reiterated the importance of shared prosperity and inclusive growth, emphasizing the need for a cooperative approach to maximize the benefits of the mining sector for all stakeholders.
"President Oligi's vision for Gabon's mining industry includes a focus on local transformation, with a goal to ensure 35% of the country's production is processed domestically. This approach aims to empower Gabonese and African citizens to benefit from the country's mineral wealth collaboratively."
['African mining', 'Future Minerals Forum', 'mining industry', 'sustainable development', 'Gabon', 'green steel production']