Encouraging Results in Zinc Mining News from another company also exploring Yemen for minerals, this one with a Canadian connection as well. Teck Cominco at one time held a 20% interest in ZincOx ( I am not sure what the present percentage is) and has one seat on Zinc Ox’s Board.
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Encouraging Results in Zinc Mining
By Mohammed Al-Asaadi
May 14, 2006 -
SANA’A – Valuable deposits of zinc, silver and lead have been discovered in Yemen by an international joint company, led by ZincOx .
ZincOx, a British mining company with the majority of the shares, has been exploring in Nihm Khalwaln for the past six months.
Samples taken form the site show the deposits to be economically valuable, encouraging the company to proceed further.
The Ministry of Oil and Minerals has welcomed investors in the fields of minerals as well as oil and gas. The contract will be submitted to the cabinet for approval and for ratification at the parliament. The final announcement will be issued by a republican decree.
The Jabali zinc deposit is located 110 km northeast of Sana'a, and contains a geological resource of 12.6 million tonnes of oxide ore, grading 8.9% zinc, 1.2% lead and 68g/t silver.
The mineral rights to the deposit are currently held through an Exploration Licence which is owned by a joint venture comprising ZincOx (60%), Anglo American plc (20%), and Ansan Wikfs (Hadhramaut) Ltd, a Yemeni company (20%), according to the company’s website.
In March 2005, ZincOx announced the results of a feasibility study for the development of the Jabali deposit at the rate of 800,000 tonnes per annum of ore, with a grade of 9.2% zinc, over a mine life of 12 years.
The potential to increase the mine life by exploration success is considered good, as the deposit is open on two sides. A small amount of lead is recovered and sold but generally the lead is not of an economic grade. The silver, however, passes to the tailings and is recoverable, subject to silver prices.
The Government of Yemen has stated its intention to diversify the economy of the country away from its dependence on oil and gas and is actively encouraging investment in the mining industry. The revenue generated from Jabali in terms of taxes and industrial development in Yemen will bring significant long term benefits to the country.
In October 2005, ZincOx signed an Exploitation Contract with the Government of Yemen. This Contract contains all the terms and conditions under which the deposit will be exploited. These terms include a six year tax holiday and a 1.5% NSR royalty on zinc and lead production. The Contract is subject to the approval of the Yemeni Parliament, after which it will be ratified as a law.
Last week, Khalid Mafoudh Bahah, Minister of Oil and Minerals promised all investors and operating companies in the country as well as bidders full transparency and equal opportunities to enter competitions.
Meanwhile, Yemen earned $1.45bn in oil exports in Q1 2006, more than double that in the corresponding period in 2005, reported Reuters citing central bank figures. Exports rose 25.2% to 17.42m barrels in the period.
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Yemen Observer Newspaper