US$83.5 million to Fund Zara Gold Project

SFECO Group is one of the six massively investing Chinese companies in Eritrea
SFECO Group is one of the six massively investing Chinese companies in Eritrea

By TesfaNews,

Zara Mining Share Company (ZMSC) have entered in to an Engineering, Procurement and Construction (EPC) contract to commence construction work on the Zara Gold Project in Eritrea.

The EPC contract that amounts approximately $83.58 million for a two-year construction period was signed between ZMSC General Manager Mr. Michael P. Kelly and Mr. Zhang, CEO of Foreign Economic Group.

ZMSC is a joint venture company established between China SFECO Group (60%) and the Eritrean National Mining Corporation ENAMCO (40%). 

ZARA Mining is mainly in charge of KOKA gold mine exploitation. It now holds exploration and exploitation rights of 147-square-kilometer area in ZARA mineral region and 18-year mining rights of KOKA gold mine.

It is to be recalled that SFECO purchased the 60% share from Chalice Gold Mines in September 2012 at a whopping $114 million.

Ever since its initial entry to the country, SFECO have increased its involvement in the country’s massive infrastructure and natural resources projects. So far it has accomplished a $168.5 million Eritrea Equipment Procurement Logistic Contract; a $100 Million Hirgigo power plant expansion project; a $100 million agriculture-related plant; and now a $83.5 million Zara production plant.