Equatorial Guinea’s Ministry of Mines and Hydrocarbons (MMH) has signed the first mining contracts in the country’s history, following the conclusion of the country’s inaugural mining bidding round last year.

The ministry signed five mining contracts with three different companies, including one gold exploration contract in Block I with Manhattan Mining Investment.

Other contracts included three prospecting contracts with Blue Magnolia in Block B for bauxite and precious metals, Block K for gold and Block H for gold, uranium, iron-ore, bauxite, basic metals and rare earth minerals, as well as one prospecting contract with Shefagold in Blocks N and O for platinum, palladium, silver, chrome, copper, magnesium, phosphorus, iron-ore and related minerals.

The newly appointed contractors are expected to start exploration activities in the Rio Muni area, which is highly prospective in minerals such as gold, diamonds, base metals, iron-ore and bauxite.

MMH Minister Gabriel Mbaga Obiang Lima says mining is a key contributor to economic growth and jobs creation across West and Southern Africa.

“We truly believe that it is time that Equatorial Guinea enters the race and starts developing its potential in minerals. The development of this industry is central to the government’s economic diversification agenda and is expected to create thousands of jobs in the future.”

Earlier in May, the MMH published a new regulatory framework for mining operations in the country. The new regulation applies to all exploration and exploitation activities by both foreign and local companies that wish to operate in the Republic of Equatorial Guinea.

The move notably aligns with Equatorial Guinea’s Economic Diversification Policy designed by the government following its Second National Economic Conference, and follows the successful approval of the Mining Law by the National Bicameral Parliament.

Given Equatorial Guinea’s heavy reliance on hydrocarbons to support its economy, mining and minerals are seen as a key sector to diversify national output, increase revenue generation and create jobs.

Under the ongoing Year of Investment 2020, for instance, the MMH is promoting key projects in the mining and minerals industry, notably including an industrial mining area with a gold refinery.