GSE COURTS NEW MINING COMPANIES

UNCLAS ASMARA 000168 SENSITIVE SIPDIS LONDON AND PARIS FOR AFRICA WATCHERS DEPT FOR AF/E E.O. 12958: N/A TAGS: EMIN PGOV ER SUBJECT: GSE COURTS NEW MINING COMPANIES REF: 08 ASMARA 541 ¶1. (SBU) The Eritrean Government (GSE) welcomed representatives from two large-scale mining companies May 28-31, hoping that these companies would be the first large-scale investors in the mining sector. The companies, one South African and one Australian, expressed interest in mining operations in Eritrea's northwest and south-central provinces. During their stay, the representatives told Emboffs that they had been treated courteously by the Ministry of Mines and Energy and were highly encouraged to invest in Eritrea by mining companies already present, such as Sunridge. The representatives did, however, express concern to Emboffs over logistical issues, such as the presence of rebel groups and procedures for emergency medical evacuations. Nonetheless, the representatives indicated that they will most likely pursue mining contracts with the GSE. ¶2. (SBU) On May 11, the GSE awarded additional mining licenses to two British companies (Andiamo Exploration and London Africa),two Chinese companies (Zhongchang Mining and Land and Energy),two Australian companies (South Boulder and Gippsland),one Indian company (Spice Minerals),and one Libyan-Eritrean joint venture (Eri-Lib Mining Share). All the companies are small-scale, junior outfits hoping to make a name for themselves via a successful operation in a risky environment, according to the representatives from the prospective large companies. Six companies already operate in Eritrea (reftel). TABLER-STONE