From: Biniam Tekle (biniamt@dehai.org)
Date: Fri Nov 06 2009 - 15:09:20 EST
Eritrean mining made safer after attack:Chalice Gold
Fri Nov 6, 2009 5:12pm GMT
By Jeremy Clarke
ASMARA (Reuters) - An increase in state-provided security will help shield
Eritrean mining from violent attacks, an independent analyst said on Friday.
Three miners, Eritrean nationals employed by Australian company Chalice Gold
Mines Limited were ambushed and executed on a remote road north-west of the
capital last month.
Much hope is pinned on Eritrea's minerals sector, seen on the threshold of a
mining boom that may drive its agriculture-based economy.
Over a dozen foreign companies are exploring or about to start in the Red
Sea state. Last month's attack created fears that investors could lose their
nerve and stay away.
"After taking a look, we are confident it was an isolated incident and not
in any way directed at the mining industry," said Kel Donovan, a
risk-assessment expert brought in by the Chalice.
"There were no identifiable risks on the travel routes to the mining site or
on the site itself," Donovan told Reuters in Asmara, after a week-long
review of the company's safety measures as well as travel and emergency
procedures.
"Given the presence of law enforcement we find the industry relatively
safe."
The managing director of Chalice, Doug Jones, welcomed the increase in
security personnel provided by the government to all mining companies.
"Security has been beefed-up not just for (foreign nationals working in
Eritrea) but across the board for the whole industry," Jones said.
Eritrea's mining potential is largely unexploited, apart from small-scale
artisan mining and some minor extraction by Italians during the colonial
era. Some bigger miners were scared off by the 1998-2000 border war with
Ethiopia.
Gold, zinc and copper are the main interests. Chalice's Zara project is one
of the largest operating in the country and is believed to hold 1 million
ounces of gold. It does not expect to start production before 2011.
Eritrea's most advanced project, run by Canada's Nevsun Resources Ltd, is
Bisha. Its 27 million tonnes of ore are believed to contain 1 million ounces
of gold. Production is expected by late 2010.
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