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Asmara Geocongress Journal Asmara Geocongress Journal 2011 - Facts on Eritrea - A message fom His Exellency the Minister - About the Ministry of Energy and Mines - Highlights of 2010-2011 - Mining Law - Geology of Eritrea - Mineral potential of Eritrea - Current mining activities and future investment opportunities Produced by:- A Message From Ministry of Energy and Mines The Minister © 2011 Ministry of Energy and Mines For further information contact:- Ministry of Energy and Mines P.O.Box 5285 Asmara, Eritrea Dear Reader, Tel:- +291 1 116872/127944 Fax:- +291 1 127652 On behalf of my Ministry and the role in the development of the economy www.moem.gov.er Government of Eritrea, it gives me great side by side with the other sectors. pleasure to welcome you to the 2011 Department of Mines geocongress. Eritrea has a very enthusiastic work force P.O.Box 272 Eritrea is an attractive venue for invest- keen to learn and adapt to the dyna- Asmara, Eritrea ment in the Mineral sector for, but not mism of this sector. These coupled with Tel: +291-1-202889 limited to, the following reasons stated the positive role played by regional and +291-1-202843/44 below. local administration and the public at large Fax: +291-1-124509 make this country one of the top destina- As part of the Arabian Nubian shield, tions for investment in the mineral sector. 60% of the Eritrean territory is covered To find other Useful in formation on by Greenstone volcano sedimentary rocks Eritrea is far from being fully explored, Eritrea, please check these websites:- known to be favorable hosts to sever- there are still virgin but prospective areas www.shabait.com al metallic Minerals. Again the Arabian out there awaiting to be looked at. For this www.ecss-online.com Nubian shield is known for its ancient and and other reasons, Eritrea is an attractive www.dehai.org Modern world class deposits, to name a venue for investment in the mineral sec- few Sukeri in Egypt, Hassai in Sudan, Bisha tor. in Eritrea, Maaden and Gebel-Said in Saudi Arabia. It is my belief that the upcoming geo- congress will offer a unique Apart from these types of rocks ,Eritrea opportunity to highlight Eritrea’s Contents:- also offers favorable geology for industrial mineral potential and gain new and construction minerals of which the partners in the development Country Profile......................................3 recent discovery of Large Potash deposit of the sector for mutual ben- The Ministry of Energy and Mines.......3 in the Northern Red Sea region makes it efit. Industry leaders will have Mining law.............................................4 even more apparent. On top of this Eritrea an opportunity to share experi- Geology of Eritrea.................................5 has developed a coherent and attractive ances and discuss strategies to Mineral potential of Eritrea..................6 policy in the mineral sector as is portrayed scale up investments. Geothermal potential...........................8 in it’s Mining Law. The Mining Law which Mining and Exploration Activities.........8 is based on the Western Australia Mining Investment Opportunities.....................10 Code and is clear, simple and transparent. Ahmed Haj Ali Company Profiles...................................11 The Government is seriously committed to Minister of Energy and Mines develop this sector so as to play its positive Country Profile The Ministry of Country Profile Energy and Mines Eritrea joined the world community of sense of Eritrean naonal unity. Tigrinya The Ministry of Energy and Mines is independent states in May 1993 follow- and Tigre are the most widely spoken the authorized Licensing Agency and ing a thirty year war for liberaon ending indigenous languages. English and Arabic is responsible for the administraon, in May 1991. A UN supervised refer- are also widley used regulaon and coordinaon of all types endum held in April 1993 enabled the The topography of Eritrea is excepon- of mining operaons in Eritrea. The De- Eritrean people toexpress unequivocally ally varied, from the 1,200 kilometer partment of Mines within the Ministry to the world their desire for freedom long coastal plain only a few meters encompasses, amongst other funcons, and independence. above sea level, through the central the Geological Survey, Mine Resources highlands ranging up to 2,500 meters Development and the Mines Administra- Soon aer independence, the govern- above sea level, to the low lying western on Divisions, and is also itself acvely engaged in mapping and exploraon acvies. There are now five 1:250,000 scale geologic maps some of which are not published. 1:1,000,000 scale geologic map covering the whole country, has recently been prepared. The Eritrean mining sector has shown rapid develop- ment over the past few years since the Ministry of Energy and Mines started issuing licenses in 1997. Since then, several exploraon com- panies have been involved in assessing and exploring the mineral potenal of the country. In the successive years addional licenses have been issued. and south western areas of the country. The Ministry has also been developing a ment of Eritrea has been engaged in Rugged mountain chains run from the naonal minerals database. The Ministry rehabilitang the war-torn economy and central plateau to the extreme north of has a responsibility to provide prelimi- improving the standard of living of the the country. The climate in these differ- nary informaon to exploraon compa- people. It created a conducive environ- ent terrains correspondingly varies from nies interested in conducng detailed ment for the acve parcipaon of local arid, to semi-arid, to temperate. The invesgaons in Eritrea, and to make and foreign private investors. However, mean annual rainfall in the coastal areas contribuon towards enriching the geo- since May 1998 the development of this is less than 300 mm per year, whilst in logical database of the country. As part young state has been severely curtailed the highlands and the western lowlands of its roune works, the Department by the border dispute with neighbour- rainfall ranges between 500 and 1,000 of Mines of the Ministry, through the ing Ethiopia. Despite this, the Eritrean mm. Mineral Resources Management Division people and Government are as resolute issues licenses to mining companies, as ever in their commitment and en- Eritrea’s infrastructure is centered on local miners, and controls and supervises deavors to work together to rebuild their a well developed communicaons net- exploraon and mining acvies so that country’s economy, and to secure social work linking the capital city Asmara to they are in line with the direcves of and economic progress. The outcome of the regions of the country, including the the Ministry and are environmentally the hard work is now being realized by two main sea ports of Massawa and Ass- compliant. In addion, the Department the emergence of a prospecve country ab, and to the neighbouring countries. of Mines, through its research wing, in the region. Asmara and Massawa have internaonal the Geological Survey, has been work- airports, which also serve internal flights. ing, together with foreign governmental This young state is located in the north- Inevitably, the ravages of war have le agencies and internaonal organizaons, eastern part of Africa with the Red Sea their mark on the infrastructure, and the to carry out geological mapping and on its east coast, Sudan to the west and reconstrucon of the prime facilies has mineral exploraon programs. north, and Ethiopia and Djibou to the been a high priority. Telecommunicaon south. Eritrea, with a land surface area facilies have also been renovated and Some of the acvies conducted in 2010 of about 125,000 square kilometers, developed, and mobile phones are now and in the last few years include: including hundreds of coral islands in a common sight. - Following applicaons by several the Red Sea, has a populaon of about exploraon companies, evaluaon was four million people. The country is home done and licenses were granted. At this to nine ethnic groups, all with a strong me about Twenty one companies are 3 Country Profile acvely engaged in acvies of mining, and Regulaons on Mining Operaons which recognises the risky nature of mine development, in advanced and pre- Legal Noce No. 19/1995. mining investments, and hence allows: liminary exploraon operaons. Some Key Policy issues upon which the Mining of these companies are in joint venture Law is based include: * Accelerated depreciaon (straight with the Eritrean state owned mining line method over 4 years) of all capital • All mineral resources in Eritrea are corporaon ENAMCO (Eritrean Naonal and preproducon costs; public property. TheState has a duty to Mining Corporaon), but there are also * Write-offs of exploraon expendi- ensure the conservaon and sustainable Canadian, Australian, Brish and Chinese ture in curred anywhere in the country; * The carrying forward of losses; * A generous reinvestment deducon (5% of gross in come); * No dividend tax * A nominal rate of import duty (0,5%) on all inputs necessary for mining opera- ons; * Normal royalty rates as well as an opon for the reducon, suspension or waiver of the royalty in appropriate circum stances; • Equitable foreign exchange regulaons perming; * Free and unrestricted repatriaon of earnings; * Retenon of a poron of foreign currency earnings abroad in external Central Highlandsdevelopment of these resources for accounts; companies. As the rate of success the benefit of the people; * Maintenance of foreign currency ac- of most companies is high, more and counts in banks in Eritrea. more companies are expected to apply • The intenon is to create a favour- and join the Industry. • A simple “one-stop” licensing system able atmosphere for foreign investment enabling all the formalies for all types in the mining sector. Due recognion is - The Eritrean Geological Survey in of licenses for mining operaons to be made of the significant role that foreign collaboraon with the Geological survey completed by a single Government agen- investment and skills can play in the de- of Iceland conducted a detailed geophys- cy, the Ministry of Energy and Mines.
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