From: Biniam Haile \(SWE\) (eritrea.lave@comhem.se)
Date: Tue Sep 15 2009 - 14:43:12 EDT
The Economist Intelligence Unit
Eritrea industry: New companies enter mining sector
July 27th 2009
FROM THE ECONOMIST INTELLIGENCE UNIT
A number of new exploration licences issued by the Ministry of Energy
and Mines in the first half of the year were confirmed in mid-May by the
ministry's director-general of mines, Alem Kibreab, who said that the
new permits had brought the total number of foreign companies involved
in minerals exploration in Eritrea to 14.
Two of the new companies-South Boulder Mines, which has a licence to
explore for potassium in the Danakil desert, and Gippsland, which has
permission to explore for precious and base metals in the Adobha region
through its subsidiary, Nubian Resources- are registered in Australia.
Two firms based in the UK, Andiamo Exploration and London Africa, gained
licences to explore for gold in the Harab Suit region and in
Haykota-Gogne, part of the Gash Barka region.
The other companies new to Eritrea are Spice Metals & Minerals, based in
India; the Eritrean-Libyan Mining Share, and two Chinese companies: Land
and Energy and Zhongchang Mining. Mr Kibreab also said that Eritrea's
most advanced project, the Bisha mine, should start producing gold by
the third quarter of 2010.
A company based in Canada, Gold Hunter, announced on July 2nd, that it
intends to expand its gold and base metal mining business into Africa by
acquiring Sanu Resources-also based in Canada-which has been operating
in Eritrea since 1998. Sanu discovered precious metals and minerals in
the Hambok deposit, 200 km west of the capital, Asmara, in 2006.
The takeover, if it goes through, would be the second consolidation of
companies targeting Eritrea, following the planned merger of Chalice
Gold and Sub Sahara Resources, both registered in Australia, announced
in April. Finalisation of the Chalice-Sub Sahara merger is likely in
August.
The Economist Intelligence Unit
Source: Country Report
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