Chad’s mining minister outlines the government’s plans and aspirations
On March 23, 2009 the government of Chad set up the Ministry of Mines and Geology. The main objective of the ministry is to allow the development of mining in Chad and to aid the economic development of our country.
With the help of donors, the government is investing CFA500 millions yearly in mining exploration. However, given the potential of the territory and the economic benefits that might result from the exploitation of these resources, doubling this investment is needed.
The lack of infrastructure is a major obstacle to exploration. To ensure the development of resources infrastructure planning should take into account the occurrences of potentially profitable minerals.
Mining in Chad is underdeveloped. The only metal currently being exploited is gold in southwest Chad and even this is being extracted using artisanal-mining methods.
The recent discovery of several instances of poly-metallic mineral deposits could change this situation. These discoveries demonstrate the potential importance of gold to the country.
Under the mining code (Law No011/PR) of June, 1995, companies are protected in their exploration and development of minerals projects.
Enterprise that acquires productive assets get a discount of 40% through tax credits. In addition, the costs of accommodation training and infrastructure are discounted from start-up costs and amortized over five years.
To take into account the stage of political and economic environmental and mining development and the state of the world economy the mining code will undergo an overhaul in order to render it more appropriate, flexible and attractive.
The development of mineral resources is needed to stimulate national economic growth. Indeed, a national exploitation coupled with the modernization of techniques for extracting and processing minerals will increase employment nationally and regionally.
However; the development of minerals resources requires not only considerable expenditure but also a skilled and experienced staff. In this regard Chad still lacks a sufficient number of technicians and managers.
Therefore, the training of locals is mandatory, because vital.
The promotion of mining is one of the priorities of government policy. The focus on the sector stems from the hope that the mining sector will play a full role in the development of Chad.
To make mining one of the main components of the economy, extraordinary measures must be taken to solve the financial infrastructure and human resources problems.
The government intends a programme of intensive geological exploration-both geophysical and geochemical-to gather information that could provide the basic for further exploration and development by the local government and privet companies.
Ahmat Mahamat Karambai,
Ministry of Mines and Gology
Republic of Chad