From the press and the media

Jacob Engel´s Engelinvest expands in the mining business: purchased 72 gold and mineral prospecting licenses in Tanzania

22-23 February 2009
By: Ariel Rosenberg

Engelinvest Group, owned by Jacob Engel, is expanding its gold prospecting and mining operations. The company, through Elenilto co., purchased 72 gold, copper and other mineral prospecting and mining licenses from local license holders in Tanzania, East Africa, who will be entitled to part of the profits from there operations.

Upon purchasing the license, the (private) company holds prospecting and mining licenses for an area totaling over 7,500km2 in the country. It intends to invest tens of millions of dollars in completing detailed geological studies and buying mining equipment for some of the sites. The company completed initial surveys of geological and geo-physical studies and an initial aerial survey that discovered large concentrations of gold, copper and other minerals. The company is operating in partnership with local parties responsible for liaison with different authorities.

The gold licenses are for mines at Geita and Ushctu not far from Lake Victoria that have appropriate geological structures known for their gold lodes. The region is close to gold mines un by multi-national companies such as Barrick and AngloGold (Ashanti) and other mining companies operating in the region. The company signed additional gold franchises in the Iringa region where local gold mining is thriving.

High potential

According to Engelinves4t estimates, the gold reserve potential in the purchased mines is at relatively high concentrations of 1-7 grams/ton, and could total 3-2.5 million ounces valued at some $2.5 billion. In the past few days, the price of gold has leaped to almost $1,000 per ounce.

The above purchases have been made, among other things, with the jackpot Jacob Engel received in perfect timing. In November 2006, Engel sold his holdings (61.8%) in Langa Holdings and Engel Europe Group to Shaya Boimelgreen´s Azorim Group in return for NIS 430 million. Since then, real-estate company shares have collapsed and Engel took the cash and invested it in gold and other minerals, among other things. He did this through Engelinvest that operates mainly in Russia, India and Vietnam and according to Engel controls real-estate projects totaling billions of dollars.

In mid-2007 Engel also entered the metal business. In December 2008 the group completed the purchase of approximately 75% of copper mines in Tanzania (at the foot of Mount Kilimanjaro), investing tens of millions of dollars. Engel´s mining empire includes copper, iron, gold and chromium mines in Albania, Liberia, Ghana and Tanzania. The company is about to invest in gold, beryl and cobalt mines in Congo. Additionally, it operates sand and gravel quarries in the center and south of Israel and in Eastern Europe.

Along Avrani, Engelinvest Group CEO, told Globes, "We believe the African continent has the potential to generate the highest value to our mining operations. Recently, Elenilto has become a significant player in the African mineral and mining business. The group controls large gold deposits and is in advanced stages of negotiations with international mining companies on cooperation in gold production. Unlike other metals, gold enjoys stability and rising prices.”