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 May 16. "The interest is very good, from many quarters," Tesfai Ghebreselassie told Reuters of the gold-rich Horn of African 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 develop regulations to buy an extra 10 percent government stake in all projects.
Current mining laws give Eritrea the right to a 10 percent free stake, and a further 30 percent 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." In charge of the ministry since its start in 1993, Tesfai previously studied physical sciences in Poland and was a member of the pro-independence rebel movement that brought the government to power in 1991 after a 30-year war. That conflict, followed by a 1998-2000 border war with Ethiopia, has kept big mining companies wary over Eritrea.
Comments
Comments are closed.