Mineral resource development is controlled by the Office Béninoise
des Mines (OBEMINES). Benin has been revising its mining laws in order to
attract foreign investment.
Benin has gold, iron ore and phosphate potential and has awarded several
exploration licenses for gold exploration in the country to foreign investors.
There are deposits of brick and china clay, feldspar, the Loumbu Loumbu low
grade iron ore deposits and the Mekrou phosphate deposits. The development of the Loumbu Loumbu and Mekrou deposits hinges on the proposed development of a hydro electric power scheme that is to be constructed on the Mekrou river. Gold mineralisation has been identified in the Atacora and Alibori regions, where hard rock and
alluvial deposits are known to exist. At Alibori, a 350 km2 prospective area includes alluvial and vein hosted gold occurences.
Mining Code
Two laws regulate mineral exploration and mining in Benin:
· the May 17, 1983, laws No. 83-003 and 83-004 based on the Mining Code
and on fiscal policy;
the special structures created by Decree 89-296 of July 28, 1989.
The administration responsible for the mining sector has undertaken a review
and standardisation of the structures and fiscal policies that affect this
sector, in order to make easier the application procedure for mining permits
and to create legal structures that will include fiscal and financial
incentives.
Benin wishes to establish a legal framework that will let investors bring in
all safety their investment and technology to the mining sector.
All mineral substances belong to the State, who grants exclusive
rights for exploration, development and mining activities.
