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REPUBLIC ISLAMIC OF MAURITANIA

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Presentation on theme: "REPUBLIC ISLAMIC OF MAURITANIA"— Presentation transcript:

1 REPUBLIC ISLAMIC OF MAURITANIA
INVESTING IN THE MINING & OIL & GAS SECTORS

2 I. OVERVIEW

3 Mauritania: Overview Major deposits: Gold, copper and iron ore and reserves of oil and gas, including the Chinguetti Oil field. Oil production started in February 2006 and it has proven reserves of 600 million barrels Border countries:Algeria and Western Sahara ( to the North), to the East by Mali and to the South by Senegal. The country is bordered completely by the Atlantic Ocean. Land Mass : km2 Capital : Nouakchott Population: people (2012).The Demographical growth rate is 2.3% Official Language: Arabic, but French is used as the language of business Religion : Mauritania is an socially democratic Islamic Republic. Currency: Ouguiya (UM). Exchange rate (October 2013) 392,83 UM = 1 Euro & 299,24 UM =1 USD$. Ministry of Petroleum, Energy and Mining

4 Mauritania: Overview GDP Per Person (2012 Esti.): US$ 1 310
Inflation rate: 4% in 2011 Contribution of the Extractive Industries to GDP 25% (2011) Projection of FDI in $ million (IMF) Foreign Direct Investments are growing Estimated GDP Growth : : 6 % GDP Growth % (IMF) Ministry of Petroleum, Energy and Mining

5 II.Political Context

6 Political Context The Government has been democratically elected
Multiplicity of media and civil society Adherence to the EITI member countries ( 2005), country conforming to the principles of EITI ( 2012) Stability of institutions and security The Government has made the strategic decision to modernize Mauritania with the following objectives: Promoting good governance Enhancing the government performance Increasing the efficiency of public policies Establishing the foundations of a modern State Ministry of Petroleum, Energy and Mines

7 III. Organisation of the Ministry of Petroleum, Energy & Mines

8 The central administration of the Ministry of Petroleum, Energy & Mines includes :
The Minister’s Cabinet, the General Secretariat and the Central Directions. I –The Minister’s Cabinet:: 2 Heads of Mission, 5 Technical Advisors, Internal Inspector and a Personal Secretariat. The following organisations & companies report to the technical and administrative supervision of the Ministry of Petroleum, Energy & Mines: National Mauritanian Hydrocarbons Company (SMH) , The National Agency of Renewable Energy (ANADER) , Mauritanian Gaz Company (SOMAGAZ) Mauritanian Electricity Company (SOMELEC), Mauritanian Company of Refining Industries (SOMIR), Mauritanian Office of Geological Research (OMRG), National Industrial and Mining Company (SNIM), The Committee of the Mauritanian Mining School (CEM) . The Ministry monitors the good running of the: Agency for Rural Electrification (ADER), National Hydrocarbons Commission (CNHY), The Company for the Management of Petroleum Installations (GIP), Mauritanian Company for the Storage of Petroleum Products (MEPP), Project to Support Petroleum Management (PAGEP), Project for the Institutional Reinforcement of the Mining Sector (PRISM),

9 IV. The reforms

10 Mining Sector The Mining Code
Mining Code 2008/2009 updated 2012 with the following objectives : Provide competitive advantages to the investors in the mining sector Establishing the norm « first come first served » The Mining Code is completed by a new Standard Mining Convention (2012) which guarantees the stability of the fiscal system throughout the exploration period Exploration Phase : License awarded (by Cabinet) of surface of km² to a company incorporated in Mauritania with sufficient technical and financial capacities. Guaranty for good execution of the work program and prior payment of fees and rights ($6.000); Payment of progressive surface fee year by year from $6,5/km² (first year) to $80/km² (9thyear) Ministry of Petroleum, Energy and Mining

11 Mining Sector Mining Code (Continued) Exploitation Phase:
License awarded to a company incorporated in Mauritania for a period of thirty years and renewable many times for ten years. State participation in the capital with a 10% free equity and an option for acquiring a maximum of 10% cash participation in the exploitation company. Ministry of Petroleum, Energy and Mining

12 Mining Sector Application Award Permit Application Fiscal Regime :
Deduction regime according to practice in the mining industry Competitive rates Exemption during the first 3 years of production Tax exemption on dividends that are reinvested A simplified tax system for subcontractors working with mining operators Exploitation Permit 3 years Assessment 1/4 3 years Assessment 1/4 3 years Assessment Return of Permit Installation Phase 2 years Production Phase EXPLORATION PHASE EXPLOITATION PHASE Max 9 years 30 years Ministry of Petroleum, Energy and Mining

13 Petroleum Sector New legal framework in 2010 updated in 2011
New Standard Exploration Production Agreement 2011 Period of exploration: 10 years maximum divided in 3 phases Period of operation : 25/30 years, renewable 10 years Recovery cost with a rate to be negotiated The applied taxation concerns the Industrial and Commercial Profits No taxes Import/Export for oil operations A simplified tax system adopted for the foreign service providers working with the oil operators 10% of State participation free equity starting from exploration managed by SMH (NOC). Option for acquiring a maximum of 10% cash participation. Ministry of Petroleeum, Energy and Mining

14 Exploitation Authorization
Oil Sector Application Award Contract Exploitation Authorization Estimated recoverable reserves Program and implementation schedule Estimated investment Funding arrangements Enviromental Impact Assessment Rehabilitation program Standard Production Exploration Contract Sub phase 1 Assessment Geological Studies Geophysical Studies Drilling 1/4 Sub phase 2 Assessment 1/4 Sharing Production based on the R factor Sub phase 3 Assessment End Contract Fiel Development Fiel Operation NEGOCIATION EXPLORATION PHASE EXPLOITATION PHASE Max 10 years 25/ 30 years Ministry of Petroleum, Energy and Mining

15 Petroleum Sector Downstream: Hydrocarbons Code
Legal framework adopted in 2002 activities of import, export, refining, storage, racking, transportation, distribution and marketing of refined hydrocarbons Activities subject to license Revision to enhance the framework and to enable a PPP to rehabilitate, develop and manage storage capacities Ministry of Petroleum, Energy and Mining

16 Oil and Gas Blocks in Mauritania ( October 2012)
Ministry of Petroleum, Energy and Mining

17 V. Development of Key Infrastructure

18 Improvement of the Factors of Production Costs
A major investment program in the infrastructure sector has been developed by the Government, with the aim of significantly improving the conditions of development in the Private sector : Establishment of a Free Zone in Nouadhibou (starting 2012) Iron Ore Port  in Nouadhibou, extension of the Commercial Port of Nouadhibou and the Extension of Port of Nouakchott (2013) New International Airport (2014) Water supply: Aftout Saheli Project m3 per d ay (2010) Energy : launch of Gas Power Plant project and extension of the electricity network, Renewable Energy (15 MW Solar and 30 to 40 MW wind projects) Roads : opening up of the valley and the northern area with the construction of secondary roads, Education : Akjoujt Mining School, Mining Technology Training Center Akjoujt, University Campus , Telecommunications : optical submarine cable ACE (2012) Ministry of Petroleum, Energy and Mining

19 VI.Investments

20 VII. Important Assets An effective Mobilization of Private Operators Mining : more than 300 Exploration Licenses and 12 Exploitation Licenses Iron Ore : Snim/GuelbII, Xstrata/Askaf, Bumi/Tamagot, Gold : Expansion of Tasiast Gold Mine Granite : Joint Venture with SNIM Quartz : 2 exploitation permits Phosphate : Bofal Indo Mining Company Oil & Gas : 1 PSC Exploitation Phase Petronas Tullow Oil : 1 Onshore bloc et 1 Offshore (deepwater) Total E&P: 1 Onshore bloc et 1 Offshore (deepwater) Kosmos Energy: 3 Offshore Blocs (deepwater) Chariot Oil & Gas: 1 Offshore Bloc Ministry of Petroleum, Energy and Mining

21 VIII. SNIM & TASIAST

22 SNIM The New Vision of SNIM is to guarantee its integration into the Top 5 worldwide exporters of Iron Ore from now until 2025 with an annual production of 40 million tonnes and a cost of production that does not exceed $40/T SNIM: Exploits essentially two types of iron ore in the region of Tiris Zemmour in the North of Mauritania: the hematite mineral and the magnetite mineral. Hematite: The major deposits of hematite actually in production are T014 ((Kédia) and M’Haoudatt . They provide 60% of SNIM’s total production. Magnetite: The Guelb El Rhein, the only deposit of magnetite in exploitation at this time, contains several hundred million tonnes of proven reserves. The Guelbs Factory where these minerals are treated, has an annual capacity of 4.5 million tonnes. All mining operations are carried out by SNIM themselves, research, pit optimisation, earth moving, ship-loading, rolling, training, explosives, rail transport, maintenance etc. The Guelb II project includes essentially the construction and equipment of a second iron ore magnetite enriching factory. It mobilises an investment of nearly 750 million USD and covers: the extension of the existing mine, the construction of an mineral enrichment factory with an annual capacity of 4MT, the extension of the Central Electric, the extension and modernisation of installations and existing annexes, putting into exploitation a water capturing field and a network of water conveyance Ministry of Petroleum, Energy and Mining

23 SNIM In October 2013, announced the results of their exploration at Tizerghaf, situated 40 km north of Zouerate, they evaluated probable resources of 830 million tonnes ( inferred) of magnetite iron ore The PDM is an ambitious program of which the cost is about 1 billion USD. This program will focus on. The modernisation of SNIM’s existing infrastructure The increase by a significant amount of the production capacity of the Company. The 8 components of the PDM are: Guelbs II Factory, New Mineral Port (NPM), Modernisation and Rail Maintenance (MMV), Modernisation of the Communication System (MSC), Modifying the Handling of TO14 (MMT), Modernisation of the Zouerate Electrical Network (MRE), the extension of staff accommodation and Rehabilitation of hotels, new professional training centre of Zouerate (NCFPZ) SNIM is also involved in developing iron ore resources with partners including the following projects: Project El Aouj ( Xstrata), Project Tazadit 1 ( MinMetals), Project Leagarib Ministry of Petroleum , Energy and Mining

24 IX. Tasiast Kinross acquired with a 100% stake, the gold of mine of Tasiast on 17 September 2010, after having acquired Red Back Mining Inc. The mining has a very high potential, with a vast gold system, which is largely unexplored. Kinross-Tasiast finalised a framework study for the expansion of the Tasiast mine, based on the period of 16 years. For the first 8 years of effective exploitation, the average annual production should reach 1.5 milion ounces of gold, with an average sales prices from $480 - $520, with a quality estimated at about 2g/t and average rate of recovery at 93% This is an open cast mine, producing 8000 tonnes per day with the current factory and with an output of 60,000 tonnes per day envisaged after the expansion project. As of June 2011, the proven and probable mineral reserves of the Tasiast mine are estimated at 7.6 million ounces. The measured mineral resources et indices were 9.1 million ounces, and the mineral resources presumed at 4.6 millions ounces. The Tasiast Mine will exploit a deposit of 30 tonnes of gold. Tasiast is the first gold producing mine in the Republic Islamic of Mauritania Ministry of Petroleum, Energy and Mines

25 X. Current Status and Perspectives for the Development of the Mining Sector

26 Geological Coverage : Total coverage of Mauritania: 1/500
Geological Coverage : Total coverage of Mauritania: 1/ Coverage of 52% of the Territory to 1/ Format : SHP,PDF Ministry of Petroleum, Energy and Mining

27 D-Reguibat: Archean and Birimian formations: with mineralisations of uranium, iron, gold and copper...) C-Mauritanides: metamorphic, volcanic & sedimentary formations with copper, gold, iron, beryl, manganese and nickel mineralisation….) B-Coastal: formations Paleozoico-Cenozoic formations with mineralisations of Ilménite, monazite, zircon, phosphates, salt …) A-Taoudeni: deposits of Proterozoic superior to Paleozoic, with mineralisations of copper, gold, zinc, uranium…etc

28 Potentialities: Coastal Basin
Titanium/Zirconium: Jreida,Tanit,Lemsid, Cap Timiris Peat: 23 known occurrences in the Coastal Basin with more than 3 million m3 reserves of peat discovered over an area of 5000km2 Gypsum: One of the largest deposits of gypsum in the world, situated at Sebkha N'Drhamcha between 50 and 100 km to the North/North-East of Nouakchott, 9 billion metric tonnes Phosphates: Resources identified of more than 130 Mt with content 20% P2O5, in the Bofal-Loubeira Zone, easily exploitable, close to main roads and with access to the Ocean.

29 Potentialities: Mauritanides
Copper: Guelb Mogrein Deposit (IOCG), known since Neolithic times, mined by First Quantum/MCM, production (2011) 35,281 tonnes of copper & 62,938 troy ounces of gold, reserves million tonnes 1.09% copper and 0.79 g/t gold. Iron Ore: Large region favourably for both hematite, magnetite and the mineralisation of Geothite at Kaouate, Tamagot, Legleitate and Idjibiten Gold: several deposits at Fra Agharghar (Vararate), Kadiar, Mbout and Bouzraibia. The majority of prospective sites are “Greenfield” Barite: Barite discovered in several places in the Mauritanides notably at Bouzraibia REE (Terres Rares): exist in the region of Bounaga

30 Potentialities: Taoudeni Basin Potentialities: Tindouf Basin
Copper: Sedimentary Copper in the Neo-proterozoic-Cambrian, continental sediments of Taoudeni Basin, notably found in the Char and Teniagouri groups Or: Aluvial Deposit, “red bed” type Uranium: non compliant uranium, sandstone type, red-bed type, and associated with phosphates Lead,Zinc Potentialities: Tindouf Basin Iron Ore: Phanerozoic oolitic type

31 Potentialities: Reguibat Ridge
Gold: Orogenic and hydro-thermal, deposits of gold and paleoplacers Uranium: Large deposits a) Bir en Nar 704ppm U3O8 containing 2.06Mlbs U3O8 b) A ppm U3O8 containing 23.4 Mlbs U3O8 c) Aura Calcrete ppm U3O8 containing t 50.2 Mlbs U3O8 Diamants: Discovery of a kimberlitic dyke at Maqteir (2000), more40 kimberlites discovered in the country( ) Ornamental Stones: Amsaga, Tijirit and Tasiast Terrains Zednes regions Nickel, Lithium and Beryl: Occurrences of nickel present in the Paléoprotérozoic, Beryl is found in Iguilid Lithium found in several places principally at the Chambi belt green stone, Zone Nich Sebkhet, the Tijirit belt as well as the North East part of the Amsaga Complex.

32 Honour– Fraternity - Justice
Thank you very much for listening!! Please come and meet us in the Islamic Republic of Mauritania! Ministry of Petroleum, Energy and Mining Route de la plage rond-point Sabah, Nouakchott Mauritanie, BP : 4921 Tél. 00(222) Fax : 00 (222) Ministry of Petroleum, Energy and Mining


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