French mining company Eramet ERMT.PA, known as the leading global producer of high-quality manganese ore due to its Moanda mine in Gabon, revealed on Wednesday the suspension of all activities in the country due to recent events that occurred overnight.
The announcement by French mining company led to an 18% drop in its shares.
“In view of the events under way in Gabon and as a precautionary measure, the group has activated procedures to ensure the security of its staff and the integrity of its operations…From this morning all Comilog and Setrag operations have been halted and train transport suspended,” an Eramet spokesperson told media.
“The group is monitoring in real time how the situation evolves,” it said.
In the early hours of Wednesday, a contingent of high-ranking Gabonese military officials made a televised appearance, declaring their assumption of authority after the announcement by the state election commission that President Ali Bongo had secured a third term.
Comilog represents a manganese mining division predominantly owned by Eramet, while Setrag operates as a train transportation unit.
Due to its Moanda mine in Gabon, Eramet holds the title of the world’s largest producer of high-quality manganese ore, generating 7.5 million metric tons of high-grade ore in 2022.
The extracted ore undergoes a transformation into manganese alloys, crucial components in the manufacturing of carbon steel, especially vital for the construction and automotive sectors.
Eramet shares were down 18% at 62.45 euros by 0747 GMT.
