Download Eritrea`s Mineral Sector

MINISTRY OF ENERGY
AND MINES
The State of Eritrea
Area
124,000 km² including about 350 Red Sea
islands
Sea Coast
1,200 km coastline along the Red Sea
Population
Approximately 3.5 million
Capital
Asmara
Main Ports
Massawa and Assab
Climate
Varies with altitude :
Temperate central highlands plateau;
Hot and humid Eastern lowlands; and
Hot and arid Western lowlands.
Time zone
GMT + 3
Eritrea In Pictures
REGIONAL GEOLOGY
THE GEOLOGY OF ERITREA
Precambrian basement rocks
Greenstone proterozoic rocks underlie > 60% of the land area
Mesozoic sediments
Outcrop in southern parts of the country and in the Danakil
Tertiary volcanics and sediments
Tertiary plateau basalts
Lower Afar stratified flows
Afar basalts
Quaternary Sediments
Great exposure of rocks makes target generation by Landsat
& Aster imagery possible for rapid cost effective targeting
THE GEOLOGY OF ERITREA
KNOWN MINERAL OCCURRENCES
The geological setting is prospective for:
 Gold deposits…e.g. Zara Gold project
Volcanogenic massive sulphide (VMS) deposits…e.g. Bisha,
Debarwa, Emba Derho etc.


Base metals in quartz vein settings …e.g. Adi Rassi

Evaporites…e.g. Common Salt and Potash in the Eastern Lowlands

A variety of Construction & Industrial mineral deposits
Geothermal energy sources in various places of the eastern
depression

KEY POLICY ISSUES
• All mineral resources are state property.
• The Government aims for a sustainable
development of the minerals sector.
• Adherence to internationally accepted
mining industry practice
are cardinal
requirements.
• Foreign investment in mineral exploration
and extraction is encouraged.
• A
National
Mining
company
holds
Government interests of up to 40% in
mining operations.
CURRENT EXPLORATION AND
MINING ACTIVITY
Currently 19 companies are operating
in Eritrea
MAJOR ACTIVITIES IN
THE SECTOR
Bisha Mining Project
• Commissioning has commenced;
• Commercial gold production is
expected to begin by the end of
this year.
Bisha Mining Share Company
MAJOR ACTIVITIES IN
THE SECTOR
ZARA PROJECT
• Definitive feasibility study submitted;
• Processing of application for a mining
license underway;
• Development will commence in 2011
with a 40/60 joint venture with the
national mining company.
MAJOR ACTIVITIES IN
THE SECTOR
Asmara Project
Feasibility
and
Prefeasibility
Studies for different discoveries
within the property underway
MAJOR ACTIVITIES IN
THE SECTOR
COLLULI PROJECT
•
Assay results from 3 holes
confirm extensive shallow
potash over a 4.5 km2 area
with mineralization open
in all direction;
•
To confirm these results,
drilling
programs
is
continuing.
RAS KASAR
WHY INVEST IN ERITREA
Geology
 Untapped resources coupled
with a highly prospective geology
 More complex and extensive
than is apparent.
RAS KASAR
WHY INVEST IN ERITREA
RIGHT TO SELL
MINERALS
PRODUCED FREE
OF EXPORT
DUTIES OR TAX.
RIGHT TO
EXPLOIT
DEPOSITS
DISCOVERED
INCOME TAX –
38 %
RIGHT TO CARRY
FORWARD
OPERATIONAL
LOSSES
EQUITABLE FOREX
REGULATIONS
PERMIT
0.5% IMPORT
DUTY
NO TAX
ON
DIVIDENDES
TAXATION
SYSTEM
3,5% ROYALTY
ON
BASE METALS
5% ROYALTY ON
PRECIOUS
METALS
SIMPLE AND STABLE
TAXATION SYSTEM
WHY INVEST IN ERITREA
Governance
Peaceful, politically stable
Corruption free system
and
Strong Government commitment to
develop the Minerals sector in
partnership with foreign investors,
RAS KASAR
WHY INVEST IN ERITREA
Infrastructure
Two international ports adjacent to
the Red Sea international sea lane
All parts of the country are easily
accessible by road
RAS KASAR
WHY INVEST IN ERITREA
People
Hardworking, disciplined and motivated
RAS KASAR
SECRET FOR SUCCESS
•Equal partnership
share of Benefits
and
equitable
•The host-state must derive real
benefits from the exploitation of its
resources
•The investor must derive reasonable
rate of return on its investment
RAS KASAR
MINISTRY OF ENERGY
AND MINES
See you in Eritrea