Chalice Gold Mines Limited (ASX:CHN) (TSX:CXN) advises that it has agreed to enter into a joint venture with the Eritrean National Mining Corporation (“ENAMCO”) in relation to its Mogoraib North and Hurum Projects in Eritrea (“the MHJV”).
The legal framework governing the conduct of all mining and related operations within the territory of Eritrea is embodied in the mining law, which comprises the Minerals Proclamation (No68/1995), the Mining Income Tax Proclamation (No69/1995) and Regulations on Mining Operations (Legal Notice No19/1995), all of which were promulgated in March 1995.
The mining law was prepared to satisfy the key policy which is that all mineral resources in Eritrea are public property, and hence the State has a duty to ensure the conservation and sustainable development of these resources for the benefit of the people. It also provides a favourable environment for foreign direct investment into the mining sector.
Due recognition is made of the significant role that foreign investment and skills can play in the development of this sector, and of the capital intensive, long-term, and risky nature of mining investments. The law also recognises the importance of regulations to ensure the proper protection of the natural environment, and strongly urges operators to comply with sound principles of resource management and land use. Continue reading Eritrea: Mining law and the Licensing procedure→