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Sheba Exploration (UK) Plc
Sheba Exploration has a proven history of discovering new gold and copper occurrences
through target generation and grass roots mineral exploration. This strategy has placed
Sheba as a pioneer in locating as yet undiscovered gold and base metal terrains in Tigray
province in northern Ethiopia.
Longer term aims of Sheba Exploration are to build up its gold and base metal property
portfolio and to advance the projects to a stage that attract joint venture parties to
continue to add value to the property.
Sheba is also highly cognisant of its social responsibilites and recognises the importance
of building lasting relations with stakeholders on the ground, including local farmers,
villagers, and local governments.
through target generation and grass roots mineral exploration. This strategy has placed
Sheba as a pioneer in locating as yet undiscovered gold and base metal terrains in Tigray
province in northern Ethiopia.
Longer term aims of Sheba Exploration are to build up its gold and base metal property
portfolio and to advance the projects to a stage that attract joint venture parties to
continue to add value to the property.
Sheba is also highly cognisant of its social responsibilites and recognises the importance
of building lasting relations with stakeholders on the ground, including local farmers,
villagers, and local governments.
Ethiopia has a mining policy implemented in law, which accepts foreign operators on an
equal footing with Ethiopian nationals. The government through its fiscal policies, law,
order and infrastructure, appears to have created a framework to encourage the mining
industry. The World Bank has invested large amounts for the improvement of roads and
power supplies and these projects are now being implemented in northern Ethiopia and
elsewhere in the country.
Existing mining law incorporates the following features:
* foreign ownership of mineral rights is permitted
* gold production royalty: 3% (Tigray state - decision pending)
* base metal royalty: 3% (Tigray state)
* company tax: 35%
* dividends may be repatriated in currency of initial investment
* duty free importation of plant and equipment
* government equity option is a 2% maximum
* all licences are exclusive with options to obtain higher licences (including mining licences)
* duty free export of mineral commodities
The Ethiopian Mining Laws stipulate a company tax of 35% on profit, a gold production
royalty of 5% and a government equity option of 2%. Dividends from mining profits may be
paid externally. The company has been operating in Ethiopia since 1999 and has a local
office and support facilities. Mobile telephone coverage, roads, power lines and perennial
water occur within, or very close to, the companys licence areas, which are all located in
the northern state of Tigray.
equal footing with Ethiopian nationals. The government through its fiscal policies, law,
order and infrastructure, appears to have created a framework to encourage the mining
industry. The World Bank has invested large amounts for the improvement of roads and
power supplies and these projects are now being implemented in northern Ethiopia and
elsewhere in the country.
Existing mining law incorporates the following features:
* foreign ownership of mineral rights is permitted
* gold production royalty: 3% (Tigray state - decision pending)
* base metal royalty: 3% (Tigray state)
* company tax: 35%
* dividends may be repatriated in currency of initial investment
* duty free importation of plant and equipment
* government equity option is a 2% maximum
* all licences are exclusive with options to obtain higher licences (including mining licences)
* duty free export of mineral commodities
The Ethiopian Mining Laws stipulate a company tax of 35% on profit, a gold production
royalty of 5% and a government equity option of 2%. Dividends from mining profits may be
paid externally. The company has been operating in Ethiopia since 1999 and has a local
office and support facilities. Mobile telephone coverage, roads, power lines and perennial
water occur within, or very close to, the companys licence areas, which are all located in
the northern state of Tigray.