THIS ORIGINAL
POST WAS PUBLISHED AUGUST 12, 2011
MENA Mining (xi): Yemen
Yemen is a country that now is facing an acute
economic distress. Discussing political events is not my task here, and this
table shows the current situation:
Source: © World Bank Doing Business in the Arab World 2011
More information can be acquired from Doing Business in Yemen 2011 by World Bank
I guess that this paragraph from the Cantex Mine Development Corporation’s Website may be relevant to describe what is going
on:
“In the media Yemen has (at best) a tarnished
image. It seems every week of late one hears of the conflict in the northern
reaches of the country, separatist movements in the south, Al Queda training
centers… Whilst these events are factual they present a very skewed image of
what is actually happening on the ground.”
Geology of Yemen is in detail described by the Petroleum Exploration and Production Authority (PEPA) and on this page of Ministry of Oil and Minerals.
Beautiful INTERNATIONAL GEOLOGICAL MAP OF THE MIDDLE EAST (reproduced
is a part of it) can be downloaded from this resource
This Mining page of the General Investment Authority
states:
“The extensive number and measurable reserves of
Yemeni rocks and minerals provide opportunities for a variety of industrial use
products. Metallic mineral reserves are possibly the most lucrative, with tones
of Gold, Zinc, Lead, Silver, Copper, Cobalt, Platinum, Iron and Titanium
already discovered and partially mined. Non-metallic minerals, including
Limestone, Dolomite and Gypsum also provide profitable investment
opportunities.”
Here is the slide that portrays the mining operations:
Source: Yemen Mining Policy Reform: A Key To Future Mineral
Resources Investment Dr. Gaber Ali Al-Sanabani, Acting Country
Officer, World Bank at The 3rd International Yemen Oil, Gas &
Minerals Conference
It is obvious that most of the operations are
running in the North-West and Western parts of the country. In fact
Canadian Cantex Mine Development Corp. has a special presentation : : North-West Yemen. Where Success Need not to Be a Dream where it analyses all operation and in
particular provide these results.
Source: North-West Yemen. Where Success Need not to Be a Dream. Cantex, 2010 The 3rd International Yemen Oil,
Gas & Minerals Conference
The non-hydrocarbon minerals situation is described with this official summary , which is not up to date. Ministry of Oil and Minerals provides the same not updated information on
mining companies operating in the country. Here are
some:
ZincOx
Resources Plc . The exploitation and development rights to the Jabali zinc deposit are owned by Jabal Salab Company (Yemen)
Limited (“Jabal Salab”), in which ZincOx holds a 52% interest. The balance
(48%) is held by Ansan Wikfs Investments Limited, a company owned by a
prominent Yemeni business family. The projected total cost of US$ 216 million.
Information on minerals may be found on this MINDAT page. However, the latest studies show that there is presence of Zn-rich
dolomite phases and zinc occurring in dolomite cannot be processed economically
with today's methods. The company suspended this project: “as a result of the uncertain
political and security situation in Yemen, the Board determined that none of
the Company’s share of its investment in the Jabali Project (£52m) could be
recovered with absolute certainty”
One of the companies with a long story of operations in Yemen is Cantex Mine
Development Corporation. Detailed description of these operations is found on the Website, as well
as the latest update in Interim
consolidated financial statements October 31, 2010. Some of them are:
- cooperation with Vale International SA in regards to
Suwar, Wadi Qutabah and Al Masna nickel, copper, cobalt and platinum
group element projects;
- activities on cooperation of Cantex with Cheetah-Yemen Holdings Ltd.
regarding Al Hariqah gold project;
- cumulative expenditures of Cantex on Yemen programs reached $ 22.384
million as of October 31, 2010
Thani Dubai Mining Limited - a wholly owned subsidiary of a privately
Thani Investments LLC, based in Dubai, United Arab Emirates, is currently
developing a number of concessions. One of them is the Wadi Medden, located near Al Mukalla ( prefeasibility
stage). In 2010 SRK Consulting defined measured and indicated reserves of least
2.2 million ounces. This year Thani announced that the new drilling results have
indicated the probable presence of an additional 2.7 million ounces. However,
the operations are a long way from the beginning and it is estimated that an
expenditure of US$300 million is required until production starts. This technical report provides details of electromagnetic survey
at N’teisha gold occurrence (a part of Wadi Medden).
The Arab
Mining Company - a joint Arab company headquartered in Jordan, is exploring
manganese occurrences in al-Thania area, Marib province. It showed that manganese content is 32.4% - 45.8% and
reserve crude material in the concession area is 30.2 million tons.
And finally, a few notes on the investments and incentives for investors.
Two main Laws, the Investment Law No. 22/2002 and the Free Zone Law No. 4/1993 are determining Yemen’s investment
environment.
IFC/Yemen Mining Policy Reform Project. Since September 2006, International Finance
Corporation's (IFC) regional advisory service agency, thePrivate Enterprise Partnership Middle East/North Africa (PEP-MENA) jointly with the Ministry of
Oil and Minerals, is conducting efforts to develop the country’s mining
industry. In 2008, first results were achieved, including an internationally
competitive fiscal regime in the form of a mining tax section for the new
Income Tax Act. In addition, a Mining Law was drafted, redesign of Mining
Law/Regulation was conducted. All these materials were submitted, and this past
May the Government of Yemen approved draft regulations on the Law of Mines and
Quarries; issued directives for the completion of legal procedures to release
the regulations. The new law reflects the best international practices that
meet demands of local and foreign investors alike with the mining legislation
in neighboring countries.
The main characteristics of the investment climate are as follows:
·
Arab and foreign investors are given the same treatment as Yemenis.
·
Simple and easy administrative procedures for obtaining an investment
license.
·
Guarantee of repatriation of investment capital and profits.
·
Exemptions from custom fees and taxes on fixed assets.
·
Exemption from taxes on profits for seven years with a possible extension
up to 16 years.
·
Exemption from taxes on real estate, capital and contract authorization
fees.
·
Exemptions from returns as a result of technology utilization
licenses for five years.
·
The right to own land and buildings.
·
Management of the project at the investor's discretion without any
interference.
·
Adequate guarantees against nationalization, expropriation or sequestration
of projects, or the freezing of assets unless done through legal means
Useful Links:
·
Yemen Business Tax Highlights 2011 by Deloitte
·
Country Profile: Yemen, August 2008 -- Library of Congress – Federal Research Division
·
Yemen Economic Update – Spring 2009. The World Bank
·
Mining Companies in Yemen, November 2008. Ministry of
Oil and Minerals
·
Doing Business in Yemen © 2005 Pytheas Limited
·
Yemen Country Note Disaster Risk Management Programs
No comments:
Post a Comment