ministry of energy and mines. area 124,000 km² including about 350 red sea islands sea coast 1,200...
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MINISTRY OF ENERGY
AND MINES
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
The State of EritreaThe State of Eritrea
Eritrea In PicturesEritrea In Pictures
REGIONAL GEOLOGY
THE GEOLOGY OF ERITREA
Precambrian basement rocksGreenstone proterozoic rocks underlie > 60% of the land area
Mesozoic sedimentsOutcrop in southern parts of the country and in the Danakil
Tertiary volcanics and sedimentsTertiary plateau basaltsLower Afar stratified flowsAfar basalts
Quaternary Sediments
Great exposure of rocks makes target generation by Landsat & Aster imagery possible for rapid cost effective targeting
THE GEOLOGY OF ERITREA
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
KNOWN MINERAL OCCURRENCES
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
Bisha Mining ProjectBisha Mining Project
• Commissioning has commenced;• Commercial gold production is
expected to begin by the end of this year.
MAJOR ACTIVITIES IN
THE SECTOR
Bisha Mining Share CompanyBisha Mining Share Company
MAJOR ACTIVITIES IN
THE SECTOR
ZARA PROJECTZARA PROJECT• Definitive feasibility study submitted;Definitive feasibility study submitted;• Processing of application for a mining Processing of application for a mining
license underway;license underway;• Development will commence in 2011 Development will commence in 2011
with a 40/60 joint venture with the with a 40/60 joint venture with the national mining company.national mining company.
MAJOR ACTIVITIES IN
THE SECTORAsmara Project
Feasibility and Prefeasibility Studies for different discoveries within the property underway
MAJOR ACTIVITIES IN
THE SECTOR
RAS KASAR
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.
WHY INVEST IN ERITREA
RAS KASAR
Geology
Untapped resources coupled with a highly prospective geologyMore complex and extensive than is apparent.
WHY INVEST IN ERITREA
5% ROYALTY ON
PRECIOUS METALS
INCOME TAX –38 %
NO TAX ON
DIVIDENDES
0.5% IMPORTDUTYRIGHT TO CARRY
FORWARD OPERATIONAL
LOSSES
RIGHT TO EXPLOIT DEPOSITS
DISCOVERED
RIGHT TO SELL MINERALS
PRODUCED FREE OF EXPORT
DUTIES OR TAX.
SIMPLE AND STABLE TAXATION SYSTEMEQUITABLE FOREX
REGULATIONS PERMIT
3,5% ROYALTY ON
BASE METALS
TAXATION SYSTEM
WHY INVEST IN ERITREA
RAS KASAR
Governance
Peaceful, politically stable and Corruption free system
Strong Government commitment to develop the Minerals sector in partnership with foreign investors,
WHY INVEST IN ERITREA
RAS KASAR
InfrastructureTwo international ports adjacent to the Red Sea international sea laneAll parts of the country are easily accessible by road
WHY INVEST IN ERITREA
RAS KASAR
PeopleHardworking, disciplined and motivated
SECRET FOR SUCCESS
RAS KASAR
•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
MINISTRY OF ENERGY AND MINES
See you in EritreaSee you in Eritrea