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MINISTRY OF ENERGY AND MINES. Eritrea’s Mineral Sector Potentials and Opportunities Presented By: H.E. Minister Ahmed Haj Ali. The State of Eritrea. Eritrea In Pictures. REGIONAL GEOLOGY. THE GEOLOGY OF ERITREA . Precambrian basement rocks

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Presentation Transcript
slide1

MINISTRY OF ENERGY

AND MINES

Eritrea’s Mineral Sector

Potentials and Opportunities

Presented By: H.E. Minister Ahmed Haj Ali

slide5

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
slide7

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, EmbaDerho etc.
    • Base metals in quartz vein settings …e.g. AdiRassi
    • 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
slide8

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.
slide9

CURRENT EXPLORATION AND MINING ACTIVITY

Currently 19 companies are operating in Eritrea

slide10

MAJOR ACTIVITIES IN

THE SECTOR

  • Bisha Mining Project
    • Commissioning has commenced;
    • Commercial gold production is expected to begin by the end of this year.
slide12

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.
slide13

MAJOR ACTIVITIES IN

THE SECTOR

Asmara Project

Feasibility and Prefeasibility Studies for different discoveries within the property underway

slide14

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

slide15

WHY INVEST IN ERITREA

  • Geology
  • Untapped resources coupled with a highly prospective geology
  • More complex and extensive than is apparent.

RAS KASAR

slide16

WHY INVEST IN ERITREA

RIGHT TO SELL MINERALS PRODUCED FREE OF EXPORT DUTIES OR TAX.

RIGHT TO EXPLOIT DEPOSITS DISCOVERED

INCOME TAX –

38 %

0.5% IMPORT

DUTY

NO TAX

ON

DIVIDENDES

RIGHT TO CARRY FORWARD OPERATIONAL LOSSES

TAXATION SYSTEM

5% ROYALTY ON

PRECIOUS

METALS

3,5% ROYALTY

ON

BASE METALS

SIMPLE AND STABLE TAXATION SYSTEM

EQUITABLE FOREX REGULATIONS PERMIT

slide17

WHY INVEST IN ERITREA

  • Governance
    • Peaceful, politically stable and Corruption free system
    • Strong Government commitment to develop the Minerals sector in partnership with foreign investors,

RAS KASAR

slide18

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

slide19

WHY INVEST IN ERITREA

  • People
    • Hardworking, disciplined and motivated

RAS KASAR

slide20

SECRET FOR SUCCESS

  • Equal partnership and equitable share of Benefits
  • 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

slide21

MINISTRY OF ENERGY

AND MINES

See you in Eritrea