From: Biniam Tekle (biniamt@dehai.org)
Date: Thu May 21 2009 - 08:20:45 EDT
Gold, mining not Eritrea's magic wand -presidentBuzz up!
Reuters, Thursday May 21 2009
* Isaias says minerals will not guarantee development
* Patience needed to avoid 'resource curse'
By Andrew Cawthorne
ASMARA, May 21 (Reuters) - Eritrea's incipient mining sector is not a magic
solution for its economy and needs to be managed wisely to ensure benefit
for its people and future generations, President Isaias Afwerki said.
Analysts are predicting a mining boom in the Horn of Africa nation, where
reserves of gold, zinc and copper have been found, 14 foreign firms are
exploring, and a flagship first project is forecast to start producing gold
by late 2010.
The global credit crunch has dampened enthusiasm a bit, but minerals are
sure to play a big part in the future of one of Africa's smallest economies.
"Even without this financial meltdown, we've been saying let's not be misled
that this gold is going to change everything," Isaias told Reuters in the
capital, Asmara.
He has long warned Eritreans to avoid the pattern of the so-called "resource
curse", in which oil and minerals have spawned bloodshed and corruption
elsewhere on the continent.
"Anticipating to heavily rely on this resource may be crippling," he said in
an interview on Wednesday.
"The flashy thing may be very attractive ... (But) if you rush, you may be
disappointed in a very short time."
Patience and "sober thinking" was needed in developing the sector and
apportioning revenues, Isaias warned.
"The Norwegians would like to talk about 150 years from now. The Nigerians
may want to exploit all their oil resources in 10 days or 10 hours or maybe
10 years, and that's it, you're finished. This is a resource of
generations."
Eritrea this week announced it had awarded eight more licences to foreign
explorers -- on top of six already there -- and said its most advanced
project, Bisha, should start producing gold by the third quarter of next
year.
Run by Canada's Nevsun Resources Ltd with a 40 percent stake for the state,
Bisha's 27 million tonnes of ore are believed to contain 1 million ounces of
gold, 700-800 million pounds of copper and 1 billion pounds of zinc.
Isaias insisted, however, that proper economic development, and tangible
improvements for Eritrea's 4 million people, required more than just
striking gold.
"You need to have the environment for growth, and that is the
infrastructure. You need to have a plan on how to improve the quality of
life of the people, and resources available will have to be used and
utilised for achieving those goals." - For an economic interview, click on
[ID:nLL52150] (Editing by Daniel Wallis and Clarence Fernandez)
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