Workers break cocoa pods at a farm in Sinfra, Ivory Coast. File
| Photo Credit: Reuters

The discovery of huge deposits of natural resources including oil, gas and gold in the Ivory Coast is pushing the country’s economy in a new direction.

Over the past three years, the West African country — traditionally focussed on agriculture, in particular, cocoa — has leaned into a new role as an oil and gas producer.

Three discoveries of oil deposits in September 2021, July 2022 and February this year, revealed huge reserves estimated at six billion barrels.

The first deposit, called “Baleine”, is already up and running, operated by Italian company Eni. It aims to supply 2,00,000 barrels per day by 2026 and 200 million cubic feet per day of gas.

The Minister of Mines, Oil and Energy, Mamadou Sangafowa Coulibaly, said the country could now have the chance to join the OPEC (Organization of the Petroleum Exporting Countries) group of oil-producing countries.

“Other discoveries of raw materials are also opening potential new revenue streams. The number of mining permits and projects has tripled since 2012 — from nine to 28 — while research permits have increased from 120 to nearly 200 over the period.”

Mr. Coulibaly said the tax revenues generated are already 20 times higher than they were in 2012, at 372 billion CFA francs ($620 million). “The western half and the northeast of our country are full of strategic and critical minerals,” the Minister added.

Ivorian economy is diversifying: President of CAMP2E

“The Ivorian economy is diversifying into everything related to raw materials,” said Cedrick Sehe, president of CAMP2E, an organisation that promotes mining in the country.

In May, the country’s largest gold deposit was discovered in the west, with the potential to be the third-largest mine in West Africa.

Lithium, manganese, nickel and even coltan — a precious ore used to make electronic devices — have also been found in Ivorian soil.

“These minerals are particularly sought after because they are part of energy transition policies,” Serge Parfait Dioman, an engineering expert in the oil and energy industries, told AFP. “They are, for example, used for the manufacture of electric cars,” Mr. Dioman added.

Some have cautioned that the country could fall into the “raw materials curse”, where a focus on extracting an abundance of resources can end up having negative impacts on the economy.

Mr. Dioman countered that “the more diversified your raw materials are, the less risk you have of falling into this trap”. Experts have also warned about the risk of environmental damage. Fears have also been raised over the toxicity of chemicals used in extraction processes.

Meanwhile, in a sign of its changing role, Ivory Coast will host its first international mining industry exhibition — the SIREXE conference — this November and December.