Eramet Faces Market Fallout as Gabon Sets Manganese Ore Export Ban Deadline

Eramet SA $ERA.PA experienced a sharp decline in its share price, tumbling as much as 5.7%, after Gabon announced a plan to halt exports of manganese ore starting in 2029. This policy change raises critical concerns for the Paris-listed miner, given that Gabon represents its primary source of profitability. Friday’s declaration signals a turning point for the global manganese market, particularly for companies reliant on Gabonese supply streams.

Policy Objectives Behind the Export Ban

Gabon’s move to restrict unprocessed mineral exports forms part of a broader national effort to maximize domestic value creation. The government aims to stimulate job creation and promote local beneficiation of natural resources, targeting sectors such as oil, timber, and strategic metals including manganese. By encouraging onshore processing, Gabon seeks to capture greater economic benefits and minimize the export of raw materials.

Significance of Gabon in the Global Manganese Trade

The West African nation is a powerhouse in the manganese industry. According to the U.S. Geological Survey, Gabon ranks as the world’s second-largest producer of this vital alloying metal, accounting for nearly 25% of global mined output in the previous year. Manganese plays a pivotal role in steel manufacturing, enhancing the strength and durability of construction materials worldwide.

Key Industry Consequences of Gabon's Export Restriction

1. Disruption of established supply chains for manganese ore, affecting global steelmaking operations.

2. Potential upward pressure on manganese prices as buyers seek alternative sources.

3. Strategic risks to Eramet's revenue and operational planning, given its significant exposure to Gabonese assets.

4. Incentive for increased investment in downstream processing infrastructure within Gabon and the wider region.

5. Accelerated diversification efforts by international mining groups to secure more resilient mineral portfolios.

Outlook for the Manganese Sector and Eramet’s Position

Gabon’s forthcoming ban on raw ore exports signals an era of structural change in the manganese market. Miners and manufacturers will be compelled to adapt logistics and sourcing arrangements, potentially redrawing existing supply networks. For Eramet, recalibrating business models and deepening involvement in value-added processing may prove essential for securing long-term competitiveness.

At a regional level, Gabon’s policy could spur job growth, technology transfer, and industrialization, potentially serving as a model for other resource-rich nations. However, the transition phase until 2029 may see market volatility and ongoing uncertainty about future manganese supply flows.