U.S. should deter foreign mining in Eritrea-report

Friday, 14 May 2010 05:29 Reuters

By Jeremy Clarke

NSU Blood Gold NAIROBI, May 13 (Reuters) - Mining companies should be deterred from working in Eritrea and banned from raising capital or listing their securities in the United States due to Eritrea's rights abuse record, a U.S.-commissioned report said. The United States Commission on International Religious Freedom (USCIRF) said Eritrea's systematic violation of religious freedoms should mean prohibitive restrictions for foreign firms joining the nation's impending gold mining boom.

Some 16 foreign mining companies are operating in the Red Sea state. Canada's Nevsun Resources Ltd <NSU.TO> is expected to be the first to start producing gold later this year, followed some 12 months later by Australia's Chalice Gold Mines <CHN.AX>.

No U.S.-based mining company is operating in the country but analysts say an aggressive stance in Washington would heap pressure on Australia and Canada among others to follow suit.

"The U.S. government should ... prohibit any foreign company's raising capital or listing its securities in the United States while engaged in developing Eritrea's mineral resources," USCIRF said in its report released this month.

The government-funded commission was set up under the 1998 International Religious Freedom Act to give independent advice to the White House and Congress and make policy suggestions.

"NOT POLITICAL"

"Religious freedom violations continue in Eritrea. These violations include ... torture or other ill-treatment of religious prisoners, sometimes resulting in death," USCIRF said.

Rights groups claim more than 3,000 religious prisoners are being detained without charge in Eritrea, some in underground dungeons and old metal shipping containers in the desert.

Eritrea rejects all accusations relating to religious persecution, saying they are based on thin anecdotal evidence.

The only religions officially registered in Eritrea are Eritrean Orthodox, Roman Catholic, the Lutheran Evangelical Church of Eritrea, and Islam. Groups say Eritreans of other faiths, especially Jehovah's Witnesses and Baha'is, are routinely mistreated and harassed.

In response to the report, one Eritrea-based foreign miner insisted the industry was a positive force in the country.

"We are not a political organisation, we are a business and our presence is undeniably good for the average Eritrean," Timothy Strong, Eritrea manager for British mining company London Africa, told Reuters by email.

"The industry creates jobs, helps Eritrea mine its own resource and we contribute to local communities," Strong said.

Nevsun's shares have previously taken a hit from international action against Eritrea. United Nations sanctions imposed last December on Eritrea for its alleged role in Somalia saw the company's stock tumble 14 percent. [ID:nN24187084] (Editing by Richard Lough and Giles Elgood) ((Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; tel:: +254 20 222 4717)) (For more Reuters Africa coverage and to have your say on the top issues, visit: africa.reuters.com/)

Comments

+4 #17 Bado 7 2010-05-15 22:32

Forcing the western mining companies out of Eritrea can be seen as a diplomatic "success", however, it will never lead to the removal of the monster in Asmara. We need to learn from the other monster that is cozying up with Eritrea - the criminals in Sudan. The Western oil companies were all forced to leave Sudan on the massacres committed by the Islamists and Arab wannabes to the African Moslems of Darfur but the genocidal regime of Al Beshir invited the greedy and "immmoral" new capitalists of China and India.
Eritrean's best bet to force out and weaken the evil in Asmara is to convince the Swedish, Dutch and British to work hard within the European Union to stop providing any diplomatic, economic or financial support to hgdefists.
That would be the day ...

0 #16 Welet Semhar 2010-05-15 16:30

USA, USA,,,,, this country have the worst policies.It invades sovereign countries to 'install imported democracy' fail miserably like in Iraq, Afghanistan,,,, .Whenever there is their hand there follows myraid crises and even they can't clean up the mess they create let alone 'install democracy'. They waste billions & lives & in the end 'withdraw leaving democracy to evolve by itself'.No wonder it will be overtaken by China so soon.

-1 #15 isaakhaile 2010-05-15 14:12

sometimes i really wonder why u still believe US can do everything and it is there to solve every irregularities and unjust acts....though it is one of the worst.....?!!

+2 #14 Cataclysmic 2010-05-15 08:59

MR. Timthoy Strong is basically saying it is O.K. to do business with the Asmara regime who is one of the most repressive regimes in the world . I think he is more interested in maximizing the profits of his firm and therefore he will continue to deny that his company is aiding and abetting this brutal regime . I just hope thier shares on the market will keep going down until they rialize what they are doing is pure greed and supporting an evil impire , and i hope the international body , especially the US , will show a strong stand until they reverse their destractive course ,

+5 #13 Hagherawi 2010-05-15 06:21

The mining companies should be asked to leave the country, else they will finance the fascist regime for the coming decade.
The current situations is so bad that one more year under this regime, is going to be a disaster.

0 #12 Yohan 2010-05-15 04:50

To the "Abyotawian cadres" of higdef, and the regime's henchmen like Kedus,the grass is always green on their side of the fence. With all the gold and other minerals as well as western businesses, had it not been for the global strict sanctions, imagine how long it would have taken to dismantle the Apartheid system in South Africa. YES, doing business with dictators,direc tly or indirectly, helps extend the regime's life and comfort. On the other hand the ordinary people's misery and desperation becomes unbearable and extended with no hope insight. Business with dictators includes but not limited to subscribing to TV-ERI, 2% payments, Wogah Tbel fees, vacationing at the slave labor camps of Sawa, Mekete payments, Festival fees..etc. Thanks

+2 #11 hmm 2010-05-15 04:38

http://www.eastafro.com/Post/2010/05/12/thousands-of-nationals-in-diaspora-preparing-to-visit-eritrea

Check out the above news posted at Eastafro.com, it was mentioned that “3,000 participants from inside the country and over 2,000 youth from different parts of the world will take part in the Festival”

Go figure who those 3000 youth from inside the country would be, , the sons and daughter of PFDJ and friends. They will be allowed to mingle with few hundred confused kids from Diaspora whose aim is just to stay away from parents for 2 months of unsupervised stay in Asmara where they can party all night and make out in the back seat of Toyota corolla. The question is, why the 200,000 young Warsai not allowed to attend these gatherings? I don’t need to answer it for you…

0 #10 democratt 2010-05-15 00:29

hehe
That is what democracy is and how it works
when people talk in one voice like Alaamin AND issayas
forming a party and not being begamidos and anarcists or outlaws the come to democratic competition and multiparty
democracy.
But if people are outlaws and anti-society like you they get
nabed and hunted like osama bin laden...or live underground.

-4 #9 jambo 2010-05-14 20:43

I don't think this gold mining companies care a bit to know what the average Eritreans are going through. They don't even seem to understand how much power and control they have over the hungry regime that depends on them to be spoon fed. If they just walk away,it would have been a lot better for Eritrea becoming more advanced in democracy and justice. Then they can come back later for economical advancement as well. But I doubt they will do what's good for Eritrea. Because,they care more about their own emergency pocket as in now. It is blood money also how their world likes to operate under.

0 #8 hehehe 2010-05-14 17:59

The worst thing that is happening to us is that the illegal ruling party wants us to think in one way and according to what Isais feel. They also lay and force you to believe on their justification including the justification they make for putting Eritrea under Sanctions. Even Alamin M Said the party secretary was replicating his boss Isais words in the TV today on matters of Sanctions and other matters

0 #7 Anti HEGDEF 2010-05-14 16:45

No body is arguing against the wellbeing of the Eritrean population. But this wellbeing will never come under the dictator. The more money the dictator gets, the more the Eritreans will suffer and the more hostile he will be to our neighbours. If Eritrea is to be at peace with itself and with our neighbours, the dictator should be stopped from the gold mining industry and make him more bankruptcy. We have seen the dictator what a destructive he is with the little money he has. What will happen if he gets more money? Yes, buy more weapons, distribute it to the guerrilla factions he is sleeping with and create more havoc in the whole region.

-8 #6 tegadalay 2010-05-14 16:44

if the U S A want to put their hand inthis gold & mine they have to talke with eritrea not bulliying look at chaina they have invest in africa not by playing cowboy or bulling so the U S A mast listen to erirean gov not to those so called humanrights or some oppositon awet nihafash

-10 #5 YonasZerihum 2010-05-14 14:52

The irony is that when the govt strives to invest and improve the standard of living, some quarters work against the interest of the nation and then blame the same governemnt for failing to improve stand of living of average people. I understand there are internal issues that need to be addressed and the gov't has failed so far in that regard. But to compaign against investment is not some thing that can be justified. One thing i know for sure is that it will be rememberd in the near future and the govt will implicate some people because of this.

+4 #4 Zban Hgi 2010-05-14 14:23

The blind supporters of the brutal dictatorship keep saying dams, roads etc... are being built. Stalin, Saddam Hussein, Pol Pot, Kim Jong IL built roads, dams, canals etc... But it is buiding a democratic society under the rule of law that really matters in nation-building. Why is DIA fixated in building roads, dams etc...? To keep the Eritrean youth busy and occupaied in a slavery project so that they would not threaten his power.

So, the US should apply pressure on foreign mining firms to deter mining in Eritrea so that the downfall of the brutal regime can be accelerated. Otherwise, it is going to be "blood gold" mined by slave labor for the benefit of DIA.

+3 #3 sasa 2010-05-14 13:56

hey kudes i bet u dont stay in eritrea u don know the stiution there what is going there u only siting fat ass watching too mach eritv and getting everything around like u said making big line of bread u never been in that sitution ....so wht i am trying to say i think u have to go eritrea see the sitution and then u talk about it okk.

+4 #2 Ilyaas 2010-05-14 11:12

@ Kedus...

I think it's the pro government supporters who will feel guilty when all the truth comes out....our people who are suffering won't accept you when one day they are free of this tyrant...I truely believe those that support this dictator leadership should never be allowed back home when we are free!!

-18 #1 kedus 2010-05-14 08:17

The person who painted our gold is a good painter or our gold must be different and unique. I can promiss you that history is going to blame asmarino. Asmarino wish is to blow the country. The good news is that the Eritrean people and the government strong enough to stablize the country. Is Asmarino newtrall? I don't think so. Many good thing is happening in Eritrea. I never seen those news posted in Asmarino. By the way, what happen to the people who were making big line to get bread in Asmare (used to be posted on Asmarino) I used to hear that the one only univercity is closed and so on. A good government doesn't say any thing. The Eritrean govenrment solve problems. When do you think Asmarino will post the medical graduated students, the dums, hospitals, schools, the world wide demonstration, any way, Eritreans are united and will be united for ever.

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