THIS
ORIGINAL POST WAS PUBLISHED JULY 27, 2011
MENA Mining (viii): Egypt- an Option for Rare Earth?
This is
continuation of the previous post. I will not go into all relevant
details, but rather pinpoint some interesting opportunities for mining
investors, as it is outlined in the most recent (2011) detailed report on all
Egyptian mineral deposits is made by Abdel-Zaher M. Abouzeid, Abdel-Aziz M.
Khalid - Mineral Industry in
Egypt-Part I: Metallic Mineral Commodities . I strongly recommend studying this
valuable document.
Tin-Tantalum-Niobium
Recent
debate about rare earths minerals heated by the Conflict Minerals Bill, passed
by the USA in July 2010, places the Egyptian tantalum-tin resources as one of
the most important for the future. This chart from Reuters shows the price leap
over the last years tantalite ore. In 2010 the tantalum ore supply (Ta205) was
short 1,600,000 pounds, the reserve dropped continually, and estimates are that
in 2012 the tense aspect will still continue.
This
material has a good overview: November 2007 Mining Journal special
publication Tantalum
The most
known occurrences in Egypt are: Abu Dabbab, Neuweibi, Muelha, Um Naggat, and
Abu Rusheid.
Abu
Dabbab: It is
located about 20 km North of Mersa Alam in the intersection of latitude 25º 20'
27'' N and longitude 34 º 32' 30'' E. The mineralization occupies an area of
about 0.06 km2 forming cone-like shape of 100 m x 130 m. Gippsland Ltdthrough its 50% subsidiary Tantalum Egypt JSC, owns Abu Dabbab project
and Nuweibi project. Abu Dabbab ore reserves are 30.24 million tons, grading
255g/t Ta2O5 and 0.109% Sn. It is estimated that the project will be launched
in the first quarter of 2013.
Source: Mineral Industry in
Egypt-Part I: Metallic Mineral Commodities. by Abdel-Zaher M. Abouzeid, Abdel-Aziz
M. Khalid Copyright © 2011 SciRes.
UPDATE:
Gipplsland today (July 27) released an update on Abu Dabbab Project: ABU DABBAB – ALLUVIAL TIN PROJECT UPDATE - INITIAL RESULTS HIGHLY ENCOURAGING
• Alluvial separator plant successfully commissioned on site;
• Preliminary site analysis of samples confirms significant tin grades in rougher concentrates;
• Laboratory assay will enable confirmation of resource grades and reconciliation with earlier
Russian testwork.
Black Sands
From the
point of view of future investments, it is worth to look into the black sands –
the other Egyptian source of rare earth minerals.
Black sands
occur along the Mediterranean coastal plain North of the Nile Delta, especially
at the Nile outpourings near Rosetta and Damietta. These are beach placers
deposited from the Nile stream during flood seasons reaching the Mediterranean
Sea at river mouth. There are two types of black sands: the concentrated ore,
which is very dark in color and contains 70- 90% of heavy minerals, and the
diluted ore, which is lighter in color and contains up to 40%. The black sands
contain some economic minerals such as ilmenite, hematite, rutile, magnetite,
zircon, garnet, and monazite. Some areas were studied in details. Just an
example: the reserves of economic minerals at Rashid area are as follows (in
1000 tons):
- Ilmenite - 2,087
- Magnetite – 1, 437
- Hematite - 214
- Zircon - 81
- Rutile - 29
- Garnet - 72
- Monazite - 31
- Sulphides - 86
- Heavy silicates – 1,315
Source: Mineral Industry in
Egypt-Part I: Metallic Mineral Commodities. by Abdel-Zaher M. Abouzeid, Abdel-Aziz
M. Khalid Copyright © 2011 SciRes.
This June it was reported that the Egyptian Government arranged for
a tender to develop the Burullus black sand project in Kafr el-Sheikh
Governorate. Expected cost of the project is more than $ 120 million. The high
radiation in these sands make it impossible for any development project to be
carried out there so the best way is to extract these minerals and achieve
profits.
Note. Doner IDI Mining And Metals
Technology Company drafted in 2008 Executive Summary Of The Comprehensive Economic
Feasibility Study To Exploit The Black Sands At El Burullus Dunes that has complete and detailed description of
the proposed project and such summary:
“The
enlisting of the capital investment costs estimates pertaining to the Arab
office in the financial model ,in addition to the assumptions of the contracted
for feasibility base case considering the volumes and prices of the products,
concluded a return rate on the dollar (IRR) for the project standing at 21.9%
and a net present value ( NPV ) of US$ 116 million. And this result is
considered that concluded by the contracted for feasibility study as is
indicated by the financial model ( annexed with Volume III) . And this
classifies the project as an investment attracting project"
Another
useful link: CHARACTERISTICS OF SOME HEAVY
MINERALS FROM EGYPTIAN BLACK SANDS
Iron ore
This map
shows distribution of iron ore in the Middle East:
Source: The role of the iron ore deposit of
Mugharet el-Wardeh/Jordan in the development and use of iron ore in southern
Bilad el-Sham,
Dissertation by Yosha Abdel Salam Al-amri
Iron ores
in Egypt occur in two forms: Banded Iron Formation (BIF) and Ironstone. The
most famous occurrences of BIF in Eastern Desert are Wadi Kareim, Um Nar, Abu
Marawat, El Dabbah, Um Ghamis, Gabal El Hadid, Um Shadad, and Abu Di-wan. BIF
in Western Desert was discovered in two main areas namely Gabal Nazar and Gabal
Kamel. Iron stone is well represented in Egypt in Bahariya and Aswan iron ores.
In Bahariya area several iron ore deposits are located: El Harra, El Heiz,
Ghorabi, El Gedida, and Nasser. Major production is El Gedida area of El
Bahariya Oasis. The nearly 3 Mt/year produced from this deposit is destined for
Hadisolb’s Helwan Iron and Steel Works near Cairo. This production provides
about three-quarters of Egypt’s demand.
I hope that
this short overview shows potential of Egypt is the destination for mining
investors.....
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