Somaliland Exploration Investment

Mining Geology

Somaliland has 63 identified official deposits listed. The most commonly listed primary commodities in Somaliland deposits are lead, manganese, and beryllium, Iron and Molybdenum. At the time these deposits were surveyed, 60 deposits in Somaliland were observed to have ore mineralization in an outcrop, shallow pit, or isolated drill hole, known as an occurrence deposit. Somaliland has prospect deposit and 3 records of past production.

Top Somaliland Mineral Deposits

Commodity:

  1. Abrasives
  2. Asbestos
  3. Barium
  4. Beryllium
  5. Copper
  6. Gemstones
  7. Gypsum-Anhydrite
  8. Iron
  9. Lead
  10. Manganese
  11. Mica
  12. Molybdenum
  13. niobium (columbium)
  14. Silica
  15. Strontium
  16. Sulfur
  17. Talc-Soapstone
  18. Tin

Abrasives: An abrasive is a material, often a mineral, that is used to shape or finish a workpiece through rubbing which leads to part of the workpiece being worn away by friction.

Asbestos: the only commercial asbestos still in use – is mostly used in fibre cement boards.

Barium: Barium is not an extensively used element. Most is used in drilling fluids for oil and gas wells. It is also used in paint and in glassmaking. All barium compounds are toxic

Beryllium: Beryllium is used as an alloying agent in producing beryllium copper, which is extensively used for springs, electrical contacts, spot-welding electrodes, and non-sparking tools. It is applied as a structural material for high-speed aircraft, missiles, spacecraft, and communication satellites.

Copper: Copper is easily stretched, molded, and shaped; is resistant to corrosion; and conducts heat and electricity efficiently. As a result, copper was important to early humans and continues to be a material of choice for a variety of domestic, industrial, and high-technology applications today.

Gemstones: gemstone is a piece of mineral crystal which, in cut and polished form, is used to make jewelry or other adornments

Gypsum-Anhydrite: Anhydrite can be substituted for gypsum in some of its uses. Both minerals are crushed for use as a soil treatment, and in this purpose anhydrite is superior. One ton of anhydrite has more calcium than one ton of gypsum – because gypsum is about 21% water by weight.

Iron: A shiny, greyish metal that rusts in damp air. Iron is an enigma – it rusts easily, yet it is the most important of all metals. 90% of all metal that is refined today is iron. Most is used to manufacture steel, used in civil engineering (reinforced concrete, girders etc) and in manufacturing.

Lead: Lead is still widely used for car batteries, pigments, ammunition, cable sheathing, weights for lifting, weight belts for diving, lead crystal glass, radiation protection and in some solders. It is often used to store corrosive liquids.

Manganese: It is used in dry cell batteries to prevent the formation of hydrogen, to remove the green colour in glass that is caused by the presence of iron contaminants, and as a drying agent in black paints. The most important use of manganese is in the manufacturing of steel. Manganese gives the steel strength and hardness.

Mica: It is used in paints as a pigment extender and also helps to brighten the tone of coloured pigments. It is a superior insulator. So in the electrical industry it is used as thermal insulation, and in electronic equipment as electrical insulators. The plastic industry used ground mica as an extender and filler and also as a reinforcing agent. The rubber industry uses ground mica as an inert filler and as a mold lubricant in the manufacture of molded rubber products, including tires. Sheet mica is used principally in the electronic and electrical industries.

Molybdenum: The metal is used to make some missile and aircraft parts and is used in the nuclear power industry. Molybdenum is also used as a catalyst in the refining of petroleum. Molybdenum is primarily used as an alloying agent in steel. Most molybdenum is used to make alloys. It is used in steel alloys to increase strength, hardness, electrical conductivity and resistance to corrosion and wear.

niobium (columbium): Niobium is used in various superconducting materials. These superconducting alloys, also containing titanium and tin, are widely used in the superconducting magnets of MRI scanners. Niobium is used with iron and other elements in stainless steel alloys and also in alloys with a variety of nonferrous metals, such as zirconium, Niobium alloys are strong and are often used in pipeline construction. The metal is used in superalloys for jet engines and heat resistant equipment.

Silica: Industrial silica is used in a vast array of industries, the main ones being the glass, foundries, construction, ceramics, and the chemical industry. Silica in its finest form is also used as functional filler for paints, plastics, rubber, and silica sand is used in water filtration and agriculture.

Strontium: A soft, silvery metal that burns in air and reacts with water. Strontium is best known for the brilliant reds its salts give to fireworks and flares. It is also used in producing ferrite magnets and refining zinc. Modern ‘glow-in-the-dark’ paints and plastics contain strontium aluminate.

Sulfur: Elemental sulfur is used in black gunpowder, matches, and fireworks; in the vulcanization of rubber; as a fungicide, insecticide, and fumigant; in the manufacture of phosphate fertilizers; and in the treatment of certain skin diseases. The principal use of sulfur, however, is in the preparation of its compounds.

Talc-Soapstone: Talc is used in many industries, including paper making, plastic, paint and coatings, rubber, food, electric cable, pharmaceuticals, cosmetics, and ceramics. A coarse grayish-green high-talc rock is soapstone or steatite, used for stoves, sinks, electrical switchboards, etc.

Tin: Tin has many uses. It takes a high polish and is used to coat other metals to prevent corrosion, such as in tin cans, which are made of tin-coated steel. Alloys of tin are important, such as soft solder, pewter, bronze and phosphor bronze. A niobium-tin alloy is used for superconducting magnets.

Somaliland Minerals

Mineral resource records

Mineral exploration was conducted by the British Government in the former Somaliland British Protectorate and by Campania Mineral Etispica (COMINA) in Station Somaliland prior to independence in 1960. British geologists

Gypsum

  1. Suriah Malableh, 15 km southeast of Berbera: This deposit occurs in a down-faulted block of Taleh Evaporites and consists of massive fine-grained gypsum interbedded with subordinate marl beds and overlain by limestone. The gypsum contains veinlets and pockets of anhydrite. This deposit is variously estimated to contain 5 million tons of rock with greater than 80 percent gypsum (U.N.D.P., 1970) and 7 million tons of gypsum (Kaplen and others, 1977).

Other gypsum deposits: Somaliland has several widespread and thick gypsum deposits. However, the deposits at Suria Malableh have the best access and ample reserves to supply domestic needs and possible export opportunities.

Celestite

  1. Celestite (SrSO^) has been reported from the Taleh Evaporites in the vicinity of Gabiley in Somaliland. The celestite is widespread in a yellow shale within the evaporite unit. The thickness of the celestite zone was not determined. Two samples contained about 55 percent SrO, nil BaO, 0.5 percent CaO, 0.3 to 1.0 percent SiO,, 0.1 to 0.3 percent Fe203 , 0.2 to 0.3 percent MgO, and 42.7 to 43.5 percent SO^ (Farquharson, 1924). This deposit resembles celestite-bearing parts of the Kauper marl formation in the vicinity of Yate, near Bristol England. The English deposit is mined by stripping and excavation using front-end loaders, hand-picking of celestite lumps, and transportation to a wash plant for removal of clay and for sizing. This process results in a product containing 90-95 percent SrSO/ (Fulton, 1975).

Mineral Potential

  • What is really special about Minerals in Somaliland?
    Geology of Somaliland records a very long history Contains crystalline rocks of Precambrian age. Contains Greenstone belt that can potentially host significant gold deposits Late tectonic uplift and erosion Exposes deeply buried mineral deposits Causes dispersions of metals in streams and rivers Creates diversity of mineral deposits at different levels of Earth’s crust
  • Mineral Potential Geological environment and indications of mineralization reveal minerals of economic significance are widespread Highly potential for the deposits of iron ore, manganese, platinum and gold-bearing veins. A number of known deposits of minerals used in industry such as lead, zinc, tantalite-columbite, tin, and quarts crsytals. Somaliland is highly prospective and under explored.
  • Bedrock Geology and Mineral Potential
    Bedrock geology of Somaliland emphasizing units important for metallic mineral deposits
  • Metallic Minerals are present
    The most attractive metallic mineral potential of Somaliland are: Iron ore, manganese, platinum, lead, zinc and gold-bearing veins. Tin, tungsten and molybdenum (Mo)Tantalite-columbite
  • Non-Metallic Minerals
    Very large resources of marble, limestone and dolomite. A cement plant with an annual capacity of 300,000 tonnes has operated since 1987 in Berbera. Gypsum – huge deposit close to Berbera. Heavy mineral sands containing ilmenite, rutile, zircon titanite, and titaniferous magnetite. Gemstones including amethyst, aquamarine, emerald, garnet, opal, ruby, and sapphire. Gypsum, SE Berbera Amethyst
  • Conclusions: Considerable hydrocarbons could be accumulated in Somaliland basins. Somaliland is highly prospective to host abundant deposits of base metals, precious metals, heavy minerals, rare earths, coal, non-metallic and gemstones. Companies with proven track record and adequate financial and technical capacity in their respective field are desired to invest and not start-ups.

Hydrocarbon Potential

  • Regional Geology – Comparison with Yemen
    Geology of Yemen margin is similar to Somaliland prior to rifting in the Gulf of Aden. The similarities in fault trends on both sides is striking. Berbera basin is the continuation of the Bahalf graben before the extension phase before the extension phase. Yemeni basins contain 9 billion of reserves. Adjacent Somaliland basins have identical geology and potential. Yemen provides fast-track analogues. Major discoveries in East Africa.
  • Hydrocarbon Exploration Plays
    Key elements for generation and entrapment of hydrocarbon are present. Major sedimentary basins, source rocks, reservoir rocks, and structural & stratigraphic traps. Large oil and gas accumulations is highly likely in Somaliland basins. Southerly dipping Jurassic sequence of Gawan limestone overlying Daghani shale
  • Exploration Plays A working petroleum system is known to be present within Mesozoic to Tertiary sedimentary section. Presence of oil seeps at Dagah Shabel, Biyo Dader and many other locations. Oil shows on most drilled wells (e.g., Dagah Shabel, Dab Qua, Bandar Harshau, Nogal).Gahodleh shaleBasal clastics of Adigrat sandstone
  • Potential Plays: Offshore
    Plays found in pre-rift (Jurassic & Cretaceous) and Oligocene-Miocene sequences include major roll-over anticline structures. Offshore play Somaliland
  • Potential Plays: Onshore – Berbera Basin
    Primary structural traps are rollover anticlines associated with growth faults. Berbera Basin Somaliland
  • Potential Plays: Onshore – Nugal Basin
    Nugal-1 well confirmed working petroleum system in Nugal basin Tertiary movement did not breach Mesozoic structures, and hence, still contain a considerable hydrocarbon potential. D&A Proposed Somaliland Nugal Basin

Conclusion: Somaliland oil legal: Under the former Somalia regime, oil blocks were previously concessioned to Chevron, BP and Conoco before they declared force majeure more than 20 years ago when the state collapsed. The new explorers are no strangers to disputed and semi-autonomous states. UK’s FTSE-listed Ophir Energy, which owns 75 per cent of two Somaliland blocks, also has assets in western Sahara, while Turkey-based, London-listed Genel, which has 75 per cent of another two blocks, is developing assets in the Kurdistan region of Iraq and will start exploration in Somaliland soon.

SOMALILAND ENERGY SECTOR 

Berbera port close to major basins and mineralized zones with direct access to major global shipping lanes. Geological Setting Somaliland has favourable geological setting for hydrocarbon and mineral resources. Potential for world-class discoveries.

  • Current Status Majority of population depends on traditional biomass (charcoal, wood) for energy. Total installed electric capacity is estimated at a measly 70 MW. Djibouti: 130 MW, Kenya: 1,698 MW, Ethiopia: 2,061 MW, US: 1,039,000 MW. Electricity generation is mostly done through diesel generators. Somaliland has one of the highest electricity rates in the world.$1.00 – 1.25 kWh, with an average of $.80/kWh. World average is $.15/kWh. Nearly 97% of power generation is done by the private sector.
  • Challenges in the sector
    Degradation of the environment because of the use of biomass. Lack of government regulations, a key to attract investment into the sector and organize it. Lack of access to capital, (need foreign investment).The economy cannot grow without affordable energy. Poverty reduction cannot occur without access to affordable power. Industrialization will not occur without affordable power.
  • Successes Energy Policy passed in 2010.
    Electricity Bill developed with the help of USAID. Electricity Act is planned to be passed into law by early 2015.Once passed, will invigorate the sector and attract investment flow into the sector. Encouraged and promoted power companies to join forces to get economies of scale. Public awareness through energy forums to promote renewable energy use. Very potential for wind and solar power generation
  • Wind Energy Power Generation
    High wind speeds warrant developing wind power in Somaliland. Egal International wind energy pilot project: 5 x 20 Kw = kw lead the way. Encouraged private sector to follow suit. Borama: 450 kw, Erigavo: 450 kw, Burao: 450 kw, Berbera: 60 Kw, Ainabo: 60 kw, Las Anod (planned).
  • Annual Global Solar Energy Production
  • Solar Power Generation
    Solar power generation could become a viable energy source. Pursuing a commercial grade pilot solar project to encourage the private sector. There is a limited use of this highly potential power source. Foreign investment interest in Solar is gaining momentum. Hybrid systems such as solar coupled with wind could be even more reliable power systems.
  • Investment Opportunities in the Energy Sector
    Huge potential in Somaliland for investors in the power generation sector. Investing in renewable energy projects such as wind and solar are viable investment proposition. Upgrading existing diesel generators with more efficient fuel oil powered ones provides another investment opportunity. Investment in a national grid that can eventually connect with the regional East Africa grid system is a high priority in Somaliland’s energy strategy. Foreign investors can act as IPPs and sell generated power to local distributors. Government is willing to provide guarantees and implement a regulatory framework to protect foreign investment into the sector. Investment in exploiting Somaliland’s coal deposits to generate power is also another investment opportunity for foreign investors. Investment in the power generation sector has a high growth potential that warrant investor attention.