This is the same mechanism as the one put in place in Botswana in relation with Diamonds. Indeed, the historical structure was 50% Botswana and 50% De Beers in the major mines: Jwaneng; Orapa; Letlhakane (these mines are among the most profitable in the world). Botswana within a larger renegotiation of licenses decided to take a 15% stake directly into De Beers itself. Why ? 1. To participate in global profits (dividends from all of the group’s global assets); 2. Influence strategic decisions (access to the board of directors for example) and 3. Move up the value chain (sorting; cutting; polishing; trading; financial services related to diamonds).

Here Gabon is replicating this strategy, which makes a lot of sense as long as they are able to attach this new investment (part of the Eur500m right issue launched by Eramet) to a broader deal.