1 / 21

MINISTRY OF ENERGY AND MINES

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

Audrey
Download Presentation

MINISTRY OF ENERGY AND MINES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. MINISTRY OF ENERGY AND MINES Eritrea’s Mineral Sector Potentials and Opportunities Presented By: H.E. Minister Ahmed Haj Ali

  2. The State of Eritrea

  3. Eritrea In Pictures

  4. REGIONAL GEOLOGY

  5. 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

  6. THE GEOLOGY OF ERITREA

  7. 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

  8. 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.

  9. CURRENT EXPLORATION AND MINING ACTIVITY Currently 19 companies are operating in Eritrea

  10. MAJOR ACTIVITIES IN THE SECTOR • Bisha Mining Project • Commissioning has commenced; • Commercial gold production is expected to begin by the end of this year.

  11. Bisha Mining Share Company

  12. 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.

  13. MAJOR ACTIVITIES IN THE SECTOR Asmara Project Feasibility and Prefeasibility Studies for different discoveries within the property underway

  14. 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

  15. WHY INVEST IN ERITREA • Geology • Untapped resources coupled with a highly prospective geology • More complex and extensive than is apparent. RAS KASAR

  16. 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

  17. 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

  18. 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

  19. WHY INVEST IN ERITREA • People • Hardworking, disciplined and motivated RAS KASAR

  20. 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

  21. MINISTRY OF ENERGY AND MINES See you in Eritrea

More Related