Identifier
Created
Classification
Origin
08ASMARA187
2008-04-03 14:43:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Asmara
Cable title:
GSE PAYS NEVSUN 25 MILLION FROM CHINESE LOAN
VZCZCXRO2461 RR RUEHROV DE RUEHAE #0187 0941443 ZNR UUUUU ZZH R 031443Z APR 08 FM AMEMBASSY ASMARA TO RUEHC/SECSTATE WASHDC 9575 INFO RUCNIAD/IGAD COLLECTIVE RUEHBJ/AMEMBASSY BEIJING 0036 RUEHOT/AMEMBASSY OTTAWA 0191 RHMFISS/CDR USCENTCOM MACDILL AFB FL RUEAIIA/CIA WASHDC RUEPADJ/CJTF-HOA J2X CAMP LEMONIER DJ RUEKDIA/DIA WASHDC RUMICEA/JICCENT MACDILL AFB FL RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC
UNCLAS ASMARA 000187
SIPDIS
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: EMIN ECON PGOV ER
SUBJECT: GSE PAYS NEVSUN 25 MILLION FROM CHINESE LOAN
UNCLAS ASMARA 000187
SIPDIS
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: EMIN ECON PGOV ER
SUBJECT: GSE PAYS NEVSUN 25 MILLION FROM CHINESE LOAN
1. (SBU) The Government of the State of Eritrea (GSE) paid Nevsun
A $25 million down payment for purchasing a 30% stake in the Bisha
mining project, according to Nevsun and Bisha Mining Share Company
General Manager Stan Rogers (please protect). Rogers said the GSE
paid with a partial distribution from a $100 million loan from the
Chinese government.
2. (SBU) The GSE is also required to make monthly payments of
approximately $3 million to Nevsun until the mine is ready for
operations in 2010. The project will then be independently
appraised and the balance owed by the GSE recalculated; if the
project is valued at $1 billion, the GSE will owe Nevsun $300
million minus the amount paid to date. Rogers said the GSE is
already $4 million in arrears, apparently due to unknown Chinese
procedural hurdles delaying GSE access to the remaining $75
million.
3. (SBU) Rogers also said Nevsun originally offered the GSE an
additional free 10% stake in Bisha, in addition to the free 10%
required by Eritrean law, if the Eritreans agreed not to purchase
30% of the operation. Rogers said Nevsun made this offer in
anticipation of GSE difficulty in securing hard currency necessary
to make ongoing payments.
MCMULLEN
SIPDIS
SIPDIS
SENSITIVE
LONDON AND PARIS FOR AFRICA WATCHERS
DEPT FOR AF/E
E.O. 12958: N/A
TAGS: EMIN ECON PGOV ER
SUBJECT: GSE PAYS NEVSUN 25 MILLION FROM CHINESE LOAN
1. (SBU) The Government of the State of Eritrea (GSE) paid Nevsun
A $25 million down payment for purchasing a 30% stake in the Bisha
mining project, according to Nevsun and Bisha Mining Share Company
General Manager Stan Rogers (please protect). Rogers said the GSE
paid with a partial distribution from a $100 million loan from the
Chinese government.
2. (SBU) The GSE is also required to make monthly payments of
approximately $3 million to Nevsun until the mine is ready for
operations in 2010. The project will then be independently
appraised and the balance owed by the GSE recalculated; if the
project is valued at $1 billion, the GSE will owe Nevsun $300
million minus the amount paid to date. Rogers said the GSE is
already $4 million in arrears, apparently due to unknown Chinese
procedural hurdles delaying GSE access to the remaining $75
million.
3. (SBU) Rogers also said Nevsun originally offered the GSE an
additional free 10% stake in Bisha, in addition to the free 10%
required by Eritrean law, if the Eritreans agreed not to purchase
30% of the operation. Rogers said Nevsun made this offer in
anticipation of GSE difficulty in securing hard currency necessary
to make ongoing payments.
MCMULLEN