Mineral industry of Somalia

The mineral industry of Somalia produces small quantities of gemstones and salt.[1] The country also has deposits of feldspar, gypsum, iron ore, copper, gold, kaolin, limestone, natural gas, quartz, silica sand, tantalum, tin, and uranium.[1] The mineral industry makes a small contribution to Somalia’s exports and economy in general.[1]

The collapse of the central Government and the Somali Republic in 1991 led to ambiguity over mineral rights.[1] The governing authority of Somaliland, formerly part of the Republic, granted East African Mining Corp. Ltd. exclusive rights to explore all mineral deposits in Somaliland.[1] The company planned to start producing gemstones and marble in the Berbera area in mid-2006.[1]

In June 2006, Range Resources Ltd. of Australia announced that its agreement with the governing authority of Puntland (which is located in northern Somalia) that gave the company a majority interest in the rights to all mineral and mineral fuel exploration in Puntland was supported by the TFG.[1] The agreement was previously declared to be invalid on the grounds that only the national Government had the authority to negotiate mineral rights.[1] Range planned to farm out or form joint-venture agreements for some properties.[1]

As of 2006, mineral production and trade data continued to be unavailable because of the lack of a functioning central Government since 1991 and the conflict that pervaded most of the country.[1] The war forced the closure of Somalia’s cement plant and oil refinery.[1] The Indian Ocean tsunami of December 26, 2004, disrupted salt production in Hurdiye in late 2004 and early 2005; it is unclear to what extent output has recovered.[1]

Gemstone and salt producers appear to be artisanal and small-scale in nature.[1] The cement plant and refinery were operated by parastatal companies prior to their closure.[1]