Following a military coup that ousted President Ali Bongo, Gabon announced closure of national borders and ports, through which all of the manganese supply is exported from the country. Gabon is the second largest producer of Manganese in the world accounting for 7 Million Metric Tonnes in annual production as of 2021.
French miner Eramet (ERMT.PA), which has large manganese operations in Gabon, said it had halted operations reports Reuters. However, it is positive of resumption of operations soon.
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Manganese Suppliers in Gabon
Data shows that Gabon was the second highest producer of Manganese (7 Million Tonnes) after South Africa (19.1 Million Tonnes).
French Miner, Eramet had the largest mining operation for Manganese in the country. The military junta ordered the closure of all national borders and ports after the coup. This led to the total hlating of operations in the Eramet mines.
Though, on 31 Aug 2023 it claims that it will resume production on Sep 1, 2023, it is still to be seen when does national borders and ports open.
Manganese in India
India was the fifth largest producer of the metal (in 2021) with an annual production of 3 Million Tonnes. However, being a resource hungry-economy, India is the second largest importer of Manganese in the world with $1B worth of imports. Indian manganese ore exports accounted for just $11.2 Million.
Gabon was the second largest supplier of Manganese to India in 2020-21 accounting for an annual imports worth $215 Million from Gabon in 2021 which increased from $68 Million in 2020.
Indian Manganese Companies Benefits From Decreased Imports
MOIl contributes 45% of the domestic manganese production in India.
Due to the crunch in manganese supply, domestic producers might experience a surge in demand. MOIL Ltd. is a PSU that produces manganese in India. It s share price has jumped to ₹238.55 (up 4.22%) on 31 Aug 2023, following the coup.
However, the gains are less likely to continue as French company Eramet is positive of resumption of operations soon.