Business

what is the future of Gold mining in Yemen?

National Yemen

part of the mining filed work in Jabal Salab

By Sajith Kumar

Now, the big question raised out of nowhere. Can this be the crucial moment Yemen was waiting for too long to jump to economic prosperity which was hampered by terrorism, infighting and political turmoil.

Political situation in the country is deeply in trouble since fight against Ali Abdulla Saleh’s government by rebel force began early this year. However that contributed a small portion in country’s turmoil as investors willing to invest heavily into Yemen’s resources especially in gold and oil are turned away by the surge of terrorism in the country led by Anwar Al Awlaki.

Yemen has huge potentials in gold and oil. Let’s see how gold can help yemen to became a prosperous country from the shambles of today.

It remained one of the world’s poorest countries with so much gold under its soil. So a successful gold mining industry would be a welcome addition to the country’s economy.

There have been a number of recent discoveries but terrorist who ruled most of the areas threatened to kill anyone approaching mining areas thus virtually ends any Gold mining in the country.

Yemen’s Hadramout region is considered to hold huge gold deposits but it remained heavily under the influence of terrorism, making it much more risky for investors.

Inability of Yemen’s government to provide security also keeps miners away from that region and poses a collateral risk to firms operating there.

Recent reports said Thani Dubai Mining has made a major gold discovery of around 2.2 million ounces in the country worth as much as $3 billion but unable to extract it due to security threat.

Mining companies usually consider 1 million ounces of reserves as the threshold for justifying a feasibility study for a gold mine.

Analysts said despite the difficulties inherent in pursuing a large minerals development in politically unstable country, gold extraction could still be lucrative.

They however added that while Yemen might contain rich gold deposits, the challenges in developing them should not be underestimated.

Many believe that the killing of Awlaki could open a new era in Yemen’s history as it will eventually wipe out terrorism which so far kept Yemen’s gold underground and its people poor.

Now, the big question raised out of nowhere. Can this be the crucial moment Yemen was waiting for too long to jump to economic prosperity which was hampered by terrorism, infighting and political turmoil.

Political situation in the country is deeply in trouble since fight against Ali Abdulla Saleh’s government by rebel force began early this year. However that contributed a small portion in country’s turmoil as investors willing to invest heavily into Yemen’s resources especially in gold and oil are turned away by the surge of terrorism in the country led by Anwar Al Awlaki.

Yemen has huge potentials in gold and oil. Let’s see how gold can help yemen to became a prosperous country from the shambles of today.

It remained one of the world’s poorest countries with so much gold under its soil. So a successful gold mining industry would be a welcome addition to the country’s economy.

There have been a number of recent discoveries but terrorist who ruled most of the areas threatened to kill anyone approaching mining areas thus virtually ends any Gold mining in the country.

Yemen’s Hadramout region is considered to hold huge gold deposits but it remained heavily under the influence of terrorism, making it much more risky for investors.

Inability of Yemen’s government to provide security also keeps miners away from that region and poses a collateral risk to firms operating there.

Recent reports said Thani Dubai Mining has made a major gold discovery of around 2.2 million ounces in the country worth as much as $3 billion but unable to extract it due to security threat.

Mining companies usually consider 1 million ounces of reserves as the threshold for justifying a feasibility study for a gold mine.

Analysts said despite the difficulties inherent in pursuing a large minerals development in politically unstable country, gold extraction could still be lucrative.

They however added that while Yemen might contain rich gold deposits, the challenges in developing them should not be underestimated.

Many believe that the killing of Awlaki could open a new era in Yemen’s history as it will eventually wipe out terrorism which so far kept Yemen’s gold underground and its people poor.