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Denver- The Moroccan mining company Managem has announced the first gold deposits have been mined from its new Tri-K mining operation in Guinea.
Managem has been operating in the mining industry since 1930, and is active in over nine countries throughout Africa. According to the company’s official site, the company currently operates 13 different mines and has been working towards “developing a balanced portfolio of assets and metals.” Mining efforts for the company are mainly focused on extracting precious metals. The group operates mines for gold, silver, and cobalt, in addition to other minerals.
On average, a gold mine has a lifespan of between five to thirty years, according to gold brokerage firm RME. Managem’s mine has been predicted to be operational for the next twelve years, and is estimated to produce 130,000 ounces, or slightly over four tons, of the precious metal each year. At the current global gold price of $1,782.50 per ounce, the Tri-K mine alone will produce about $231,725,000 in revenue for the country annually and about $2,780,700,000 over the course of its lifetime.
Managem has made several ambitious expansion efforts during the past year, as global demand for precious metals continues to increase. The company announced earlier this year that it is working to increase the amount of gold mining in its portfolio from 20% to 50%. It is planning to accomplish this goal through the Tri-K mine, as well as through a mine it opened in Sudan earlier this year.
In line with its gold expansion efforts, Managem has also made headway in its cobalt production as well. In July of last year, the company announced a five year contract with luxury automaker BMW for the production of 20% of BMWs cobalt needs. The valuation of this contract is approximately $100 million.
Cobalt, and its derivative lithium cobalt oxide, are a crucial element in the production of lithium-ion batteries which are used in smartphones, laptops, cameras, and electric vehicles. Cobalt’s durability and the increasing demand for electric goods has caused demands for the precious metal to skyrocket in value within the past five years. Currently, the metal is worth over $45,000 a ton, according to the London Metal Exchange.
With a stated goal to “produce 2.5 tonnes of gold by 2021,” Managem’s growth in operations in central Africa will be a huge factor in helping the company surpass its production goals and establishing a solid position for itself as a leader in the African mining sector.
