In light of the recent military coup in Gabon, Fortescue Metals Group (ASX:FMG) remains optimistic about its newest iron ore project, Belinga, where first iron has now been mined.
Fortescue's global growth executive Julie Shuttleworth is set to meet the new Gabonese leaders "imminently" following the ousting of President Ali Bongo on August 30, that ended more than 50 years of Bongo family rule.
All Fortescue staff in Gabon have been confirmed safe and preliminary indications suggest that the political turmoil will not significantly impact daily life in the country.
"As far as coups go, this has been non-violent, it has been an orderly transition,” Fortescue's mining boss Dino Otranto said. He noted that essential services had been quickly restored in Gabon, including the reopening of airports and continued operations by manganese supplier Eramet.
Otranto emphasised that Fortescue was closely monitoring the situation and had established relationships with the new leadership. "We have got great relationships with them all, Julie Shuttleworth is meeting them all imminently, I am travelling over there pretty soon as well to meet the team on the ground," he stated.
As for the project, Otranto said, “I have only seen two or three orebodies the size of this in my entire life, and every single hole we punch into this orebody just gets bigger and bigger and bigger, it is phenomenal.”
The Gabon Government has rights to a 10% stake in the Belinga project, without having to fund its equivalent share of construction costs.
Otranto asserted that the project could become a significant contributor to Gabon's GDP and noted that “often when you have got something that big it elevates it above military and coup and political interests”.
The Belinga project is a key component of Fortescue's future growth strategy, as highlighted in its July production report. Despite political instabilities, Fortescue appears steadfast in its commitment to the venture, expecting to commence ore exports before the year's end.