Eritrea: Mineral, Metal and Fuel Resources
By Gary Thomas
Oct 19, 2012
Topics Covered
<
http://www.azomining.com/Article.aspx?ArticleID=201#1> Welcome to Eritrea
<
http://www.azomining.com/Article.aspx?ArticleID=201#2> Overview of
Resources
<
http://www.azomining.com/Article.aspx?ArticleID=201#3> Industrial Minerals
<
http://www.azomining.com/Article.aspx?ArticleID=201#4> Metals
<
http://www.azomining.com/Article.aspx?ArticleID=201#5> Fossil Fuels
<
http://www.azomining.com/Article.aspx?ArticleID=201#6> Investment
<
http://www.azomining.com/Article.aspx?ArticleID=201#7> Sources
Welcome to Eritrea
Eritrea, with a total population of 6,086,495 as of July 2012, is located in
Eastern Africa, bordering the Red Sea, between Djibouti and Sudan. The
country mostly has climatic conditions spreading from hot and dry desert
type climates to a semiarid climate. Eritrea covers a total area of 117,600
sq km2.
Eritrea gained independence in 1993 after a prolonged struggle for almost 30
years. The country's economy ever since its independence in 1993 has been
totally governed by the People's Front for Democracy and Justice, a
political party that has been imposing a number of restrictive economic
policies in the country.
Following the end of the Ethiopian-Eritrea war in 2000, the government
focused on maintaining a stable economic situation in the country by
expanding businesses in Eritrea and also hoping to develop a number of
international mining projects that will contribute a lot the country's
economy. In 2010, a Canadian mining company started off with its mining
operations in Eritrea at the time when foreign mining companies were finding
it difficult to work with the Eritrean Government. The country's GDP as of
2011 was $4.089 billion.
Overview of Resources
Eritrea's key natural resources include natural gas, gold, copper, oil, zinc
and potash. Almost 70% of the country is covered by the greenstone belt of
Eritrea that has deposits of precious metals and volcanic massive sulfide
(VMS).
Deposits of barite, copper, asbestos, silver, lead, iron ore, potash, zinc,
talc and feldspar were exploited in 2010. Domestic requirements were met by
importing refined petroleum products in 2010.
Industrial Minerals
In 2010, construction of a new cement plant in Eritrea was carried out by
the China New Era International Engineering Corp. This new plant at Gedem
had the capacity to produce 360,000 t/yr of cement.
The Colluli project was operated by Australia's South Boulder Mines Ltd. in
the Danakil Depression region in 2010. Two shallow potash horizons were
discovered in this region's buried evaporate deposits. According to South
Boulder, this project was expected to output potash ranging between 300 and
500 Mt.
Metals
Gold mining in Eritrea was carried out in the VMS deposits in 2010. A
treatment plant at the Bisha Mine was commissioned by the Nevsun that hoped
to commence with its commercial production in 2011.
A feasibility study on the Debarwa gold, copper, zinc and silver deposit was
conducted by Sunridge in 2010. This study was part of the Asmara project in
Eritrea. In February 2010, the Harab Suit and the Augaro gold and base-metal
projects were obtained by Bermuda's Sahar Minerals Ltd.
A drilling program was started at the Adi Rassi copper-gold prospect by
Sunridge and Chile's Antofagasta Minerals plc in 2010.
Fossil Fuels
In 2010, Eritrea's petroleum production and trade was governed by the
Minister of Energy and Mines who was in charge of granting petroleum
license, enforcing petroleum laws and carrying out petroleum contacts in an
orderly manner. The Petroleum Proclamation No. 108 of 2000 controlled the
exploration and production of petroleum in Eritrea.
Investment
Eritrea expects to see the development of many mining projects through
international investments. A pre-feasibility study on the Emba Derho
Zinc-Copper- Gold deposit started in 2011 and this project will focus on
exploring a number of mining options that can take place between the next 10
to 14 years. This study will also focus on the options of developing a gold
recovery plant.
Recent mining reports also highlighted that the Colluli potash mine has been
upgraded by Australia's South Boulder Mines that will increase the potash
output and thus bring in more revenue to uplift the country's economic
situation.
Through these mining developments, Eritrea hopes to see a positive
development in its mineral industry besides increasing its gold and copper
exploration activities. Exploration for potash is also expected to increase
in the future due to an increase in demand for this industrial mineral.
Eritrea is also keen on attracting more foreign investments in its mining
sector through the country's liberal mining laws.
Despite all these futuristic developments in the country's mineral and
mining sectors, experts feel that Eritrea's economic growth rate still
largely depends on the government's ability to solve issues such an
unemployment, low skills and illiteracy.
Disclaimer: The Author of this article does not imply any investment
recommendation and some content is speculative in nature. The Author is not
affiliated in any way with any companies mentioned and all statistical
information is publically available.
Sources
http://minerals.usgs.gov/minerals/pubs/country/2010/myb3- 2010-er.pdf
<
http://minerals.usgs.gov/minerals/pubs/country/2010/myb3-2010-er.pdf>
<
https://www.cia.gov/library/publications/the-world-factbook/geos/er.html>
https://www.cia.gov/library/publications/the-world- factbook/geos/er.html
<
http://www.sunridgegold.com/s/Eritrea.asp>
http://www.sunridgegold.com/s/Eritrea.asp
<
http://www.reuters.com/article/2012/04/16/southbouldermines-eritrea-idUSL6E
8FG4HP20120416>
http://www.reuters.com/article/2012/04/16/southbouldermines-eritrea-idUSL6E8
FG4HP20120416
<
http://www.miningreview.com/Eritrea/claims/major/advantage/over/mining/riva
ls>
http://www.miningreview.com/Eritrea/claims/major/advantage/over/mining/rival
s
http://www.azomining.com/images/Article_Images/ImageForArticle_201%282%29.gi
f
The map of Eritrea. Image Credit: CIA Factbook
Received on Sat Oct 20 2012 - 21:27:38 EDT
