Extract from the South Boulder Mines Ltd. (STB:ASX) AGM and Investor Presentation 2009 on the potentially “world class” buried evaporate potash project in Eritrea.
Factors speaking for Eritrea:
Stable Government ;
Supportive Government for foreign investment in mining and exploration;
Corporate tax rate 38%;
Government 10% free carry and after BFS has option to purchase an additional 30% equity participation interest at an independently determined price;
Other current mining activities: Nevsun Resources Ltd: NSU (TSX/AMX) Bisha Deposit
Chalice Gold Mines Ltd: (CHN.AX) Zara Project;
Mining Potash;
(Mineral) -Potash is important for agriculture ( as fertilizer) it improves texture and disease resistance of food.
Rising population and improving diets drive food consumption growth and potash demand;
Short- term decline in fertilizer use is not sustainable- irreplaceable,
Price estimates USD600- 900/ft for 2009- irreplaceable;
Colluli Project Eritrea:
Eritrean ports are close to major shipping routes to India, Asia and Europe;
Asia is major importer of potash;
Infrastructure;
Solar evaporation;
Geothermal energy;
Solution mining potential;
Cheap capital and operating costs;
South Boulder Mines Ltd. AGM Presentation 2009
Most Active Debates