Côte d'Ivoire: An Emerging Mining Hotspot in West Africa

• Cote d'Ivoire is a country in West Africa with a land area of 320,146 square kilometers and a population of nearly 30 million, and its official language is French.
• The country's economy has traditionally been based on agricultural commodities like cocoa, rubber, and wood, but there's been a recent effort to diversify into the mining sector.
• Cote d'Ivoire has shown economic stability and growth, with a focus on improving governance, infrastructure, and the business climate.
• The mining sector in Cote d'Ivoire has significant potential, with a focus on gold mining and critical minerals like lithium and cobalt, as well as energy production from crude oil and natural gas. International mining companies, including Australian ones, are active in the country.‍

Côte d'Ivoire has significant untapped mineral potential and a government committed to growing the mining sector, making it an attractive destination for mining investments in West Africa.

“Cote d'Ivoire has continuously worked to improve the business climate and implemented policies aimed at strengthening good governance, developing infrastructure, and facilitating small and medium-sized enterprises,” said Mr. Bamba Moriba, Director General of Mines and Geology at Côte d'Ivoire's Ministry of Mines, Petroleum and Energy.

Favorable Business Environment

With a population of nearly 30 million and French as the official language, Côte d'Ivoire has enjoyed political stability and steady economic growth of 7% in recent years. The government has prioritized strengthening security, improving infrastructure like roads and ports, and establishing special economic zones to facilitate foreign investment.

Côte d'Ivoire is a member of the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA). It has shown resilience in recovering from the economic impacts of COVID-19 and the Russia-Ukraine conflict.

The business environment has improved through reforms like the creation of a competition regulator and amendments to the labor law. Côte d'Ivoire ranked 110th worldwide in the World Bank's 2020 Ease of Doing Business rankings.

Untapped Resource Potential

Côte d'Ivoire’s main exports have traditionally been agricultural commodities like cocoa, rubber and wood. However, the government has actively sought to diversify the economy by growing the mining sector.

The country has significant unexploited mineral deposits, including gold, iron ore, nickel, manganese, bauxite and natural gas. Côte d’Ivoire has the biggest share of green minerals in West Africa and is highly prospective for gold mining.

“Cote d'Ivoire has critical minerals like lithium and cobalt that are strategic for the global energy transition,” noted Mr. Bamba.

Expanding Mining Production

Gold production has expanded rapidly, rising from 12 tons in 2012 to 45 tons in 2021. Manganese output has also grown steadily to 2.5 million tons in 2021.

The country has 4 industrial gold mines, 4 manganese mines, 1 nickel mine and 1 bauxite mine. There are about 200 semi-industrial small mines and over 120 licensed artisanal mines.

Oil production was over 60,000 barrels/day in 2021, while 1.2 billion cubic feet of natural gas was produced in 2020. Côte d’Ivoire exports petroleum products to neighboring countries.

“In the past decade, investments in the mining sector have benefited local communities through the establishment of schools, health centers, water supply and youth training,” said Mr. Bamba.

Conducive Mining Policies

The government has implemented mining policy reforms focused on underground mining, local content, artisanal mining, research on strategic minerals, and scientific study of mineral reserves.

The reforms have stimulated growth in exploration permits and mining licenses. As of June 2022, Côte d’Ivoire had granted 124 exploration permits and one new mining lease to Australia’s Perseus Mining.

“There are continuous improvements in governance, strong state support for mining, quality infrastructure and procedures to facilitate investment in Cote d'Ivoire's fast-growing mining sector,” remarked Mr. Bamba.

Presence of International Miners

Global mining firms present in Côte d’Ivoire include Perseus Mining from Australia which operates three gold mines, Endeavour Mining from Canada, AngloGold Ashanti from South Africa, and Equatorial Resources from Australia which holds nickel and cobalt exploration permits.

"The mining sector in Cote d'Ivoire offers great opportunities for investors and is supported by the government's efforts to maximize the economic benefits for the country," said Mr. Bamba.

Côte d’Ivoire offers significant untapped mineral reserves, a pro-mining government, and a favorable business climate for foreign investors. With expanding production and stable policies, the country is poised to be a top mining investment destination in West Africa.

Reassons to Invest in Côte d'Ivoire's mining sector

Untapped Potential

Côte d'Ivoire is relatively underexplored compared to other countries in the region. There is significant geological potential for further discoveries of minerals like gold, iron ore, nickel, manganese, bauxite and lithium. The country has granted over 120 exploration permits in recent years, indicating there is room for new projects.

Strong Economic Growth

With GDP growth averaging over 7% annually and a stable government focused on expanding the mining industry, Côte d'Ivoire offers an attractive macroeconomic environment for mining investment. A growing economy and population will drive further demand for mined commodities.

Favorable Policies

The government has implemented reforms to the mining code designed to attract foreign investors. Areas of focus include local content, small-scale mining, and research into strategic minerals. A dedicated ministry oversees the mining sector's growth.

Infrastructure Development

Côte d'Ivoire has well-developed infrastructure compared to other countries in West Africa. Ports, roads, rail lines and power projects are expanding to support mining activities. Reliable infrastructure reduces costs and enables the export of mined products.

Expanding Production

Output of minerals like gold and manganese has risen steadily over the past decade in Côte d'Ivoire. As new mines and facilities come online, production is expected to continue expanding. This demonstrates the country's mining potential is being realized.

In summary, Côte d'Ivoire offers a unique combination of mineral potential, economic strength, pro-mining policies and infrastructure development that makes it highly attractive for mining investment in the West Africa region. Significant first-mover advantages remain.