Corporate prospectors look for gold in Eritrea
Eritrea will decide this year on five more applications for mining exploration licences from companies in South Africa, Canada and China, the energy and mines minister said on Friday.
"The interest is very good, from many quarters," Tesfai Ghebreselassie said of the nation's fledgling minerals' industry.
"Decisions will be taken soon, during this year."
He did not name the five new companies. But if their licences are approved, they will join six other companies from Canada, China and Australia already exploring for gold and industrial metals in Eritrea.
Tesfai also reassured investors there would be no repeat of a temporary freeze on mining work in 2004 that hurt some firms' stock prices.
"That was a one-off, exceptional situation," he said, explaining the halt was to allow Eritrea to develop regulations to buy an extra 10 per cent government stake in all projects.
Current mining laws give Eritrea the right to a 10 per cent free stake, and a further 30 per cent purchased at market prices, in mining ventures.
"It was damaging to an extent," Tesfai said of the 2004 freeze, which was lifted in early 2005. "But it's a problem behind us, and nothing of that sort will happen again."
The country's most advanced project, run by Canada's Nevsun Resources Ltd, should start producing by the end of 2009, the minister said.
Facebook
Google
del.icio.us
Digg
AskJeeves
Windows Live
Post your comment