From: Biniam Tekle (biniamt@dehai.org)
Date: Thu May 13 2010 - 09:45:42 EDT
U.S. should deter foreign mining in Eritrea-report
Thursday May 13, 2010 09:33:13 PM GMT
ERITREA-MINING/
* Accuses Eritrea of religious freedom abuses
* Calls for hardening of U.S. policy
* Eritrea denies abuses, foreign miners reject call
By Jeremy Clarke
NAIROBI, May 13 (Reuters) - Mining companies should be deterred from working
in Eritrea and banned from raising capital or listing their securities in
the United States due to Eritrea's rights abuse record, a U.S.-commissioned
report said. The United States Commission on International Religious Freedom
(USCIRF) said Eritrea's systematic violation of religious freedoms should
mean prohibitive restrictions for foreign firms joining the nation's
impending gold mining boom.
Some 16 foreign mining companies are operating in the Red Sea state.
Canada's Nevsun Resources Ltd is expected to be the first to start producing
gold later this year, followed some 12 months later by Australia's Chalice
Gold Mines.
No U.S.-based mining company is operating in the country but analysts say an
aggressive stance in Washington would heap pressure on Australia and Canada
among others to follow suit.
"The U.S. government should ... prohibit any foreign company's raising
capital or listing its securities in the United States while engaged in
developing Eritrea's mineral resources," USCIRF said in its report released
this month.
The government-funded commission was set up under the 1998 International
Religious Freedom Act to give independent advice to the White House and
Congress and make policy suggestions.
"NOT POLITICAL"
"Religious freedom violations continue in Eritrea. These violations include
... torture or other ill-treatment of religious prisoners, sometimes
resulting in death," USCIRF said.
Rights groups claim more than 3,000 religious prisoners are being detained
without charge in Eritrea, some in underground dungeons and old metal
shipping containers in the desert.
Eritrea rejects all accusations relating to religious persecution, saying
they are based on thin anecdotal evidence.
The only religions officially registered in Eritrea are Eritrean Orthodox,
Roman Catholic, the Lutheran Evangelical Church of Eritrea, and Islam.
Groups say Eritreans of other faiths, especially Jehovah's Witnesses and
Baha'is, are routinely mistreated and harassed.
In response to the report, one Eritrea-based foreign miner insisted the
industry was a positive force in the country.
"We are not a political organisation, we are a business and our presence is
undeniably good for the average Eritrean," Timothy Strong, Eritrea manager
for British mining company London Africa, told Reuters by email.
"The industry creates jobs, helps Eritrea mine its own resource and we
contribute to local communities," Strong said.
Nevsun's shares have previously taken a hit from international action
against Eritrea. United Nations sanctions imposed last December on Eritrea
for its alleged role in Somalia saw the company's stock tumble 14 percent.
(Editing by Richard Lough and Giles Elgood) ((Email:
nairobi.newsroom@reuters.com; tel:: +254 20 222 4717)) (For more Reuters
Africa coverage and to have your say on the top issues, visit:
http://africa.reuters.com/)
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