Visit the new AsenaTv Website

South Boulder Mines upgrades Eritrea potash mine

* Study shows 85 pct increase in fertiliser reserves * Australian firm says to increase mine life (Reuters) - Australia-based South Boulder Mines has upgraded its flagship Colluli potash mine in Eritrea to a first tier asset,

* Study shows 85 pct increase in fertiliser reserves

* Australian firm says to increase mine life

(Reuters) – Australia-based South Boulder Mines has upgraded its flagship Colluli potash mine in Eritrea to a first tier asset, after a study indicated an 85 percent increase in reserves, the firm said on Monday.

Scores of mining contracts with foreign firms are expected to drive economic growth in the secretive Horn of Africa state, which exports little to the outside world and suffers from a shortage of foreign currency.

The firm, which has a 90 percent stake in the project, said it estimated Colluli now had 1.08 billion tonnes of 18 percent grade for 194 million tonnes of contained potash.

“This represents an 85 percent increase in contained potash,” a company statement said.

“The expanded resource is expected to substantially improve the already robust economics of an open pit mine at Colluli. Importantly, the shallow deposit is open in many directions and is expected to grow further with the current resource extension drilling programmes,” the statement added.

Eritrea set the government’s stake in any mining project at 10 percent in 2008 with an option to buy a further 30 percent, a small claim compared to other countries in the area like Egypt which mandates a 50 percent stake or Sudan at 60 percent, according to industry experts.

“This upgrade further confirms Colluli as a Tier 1 asset,” said South Bolder Managing Director Lorrie Hughes, adding the 17-year mine life would be extended.

Potash is a key crop nutrient that is produced in only a handful of countries, with Canadian and Russian players controlling the vast majority of global potash exports.

Apart from small-scale, artisan mining and some minor extraction by Italians during the colonial era, Eritrea’s mining potential is unexploited. Some bigger miners were scared off by the 1998-2000 border war with Ethiopia. (Reporting by Mark Anderson; Editing by Yara Bayoumy)

Review overview
  • KESHI MEASHO April 18, 2012

    Hmmm I guess it is high time for the Pentagon to brush up on their regime change in Eritrea. You never know soon they may even find oil in Eritrea and Ethiopia. If that is the case the Eritrean dictator will have been served with his pink slip. African command is on hand to do the job. Now that Tallow has hit oil in Kenya and Uganda watch for Kony the nut case war lord in Uganda will meet his end. Just as the Dictator of Asmara will. He pissed his future potential protectors in Langley, Virginia. And you know the CIA likes to go gangsta on their enemies. Sadly the criminal has destroyed the country and is selling everything dirt cheap. Sad how Africa never learns. Thugs and murderers end up in power. Africa would be served better to be colonized by America. Everyone dreams of America anyway. It would be the best thing that could happen to this damned Continent. Americans can feed Africa just by burping. Sure America is an Empire. But better to sell your body to an Empire than to a bunch of ignorant killer thugs such as African goon war lords. Yea, America has skeletons all over her closet. But I better sell my dignity to America than to a common thug AssiAss. At least I know I would have sold my dignity for a decent amount instead of death, rape, torture, prison, slavery, killing robbing etc. Go ask the Germans or Japanese who thrived under this Empire. How many have seen their lives changed for the better in Eritrea? Endless slavery and oppression.

  • Ahmed saleh April 18, 2012

    Well, a country with not government structure is hard to identify the real scandal
    either legal or not. Our higher up politicians had been doing things secretly that
    damn good ought to be against the law. Unfortunately we don’t know who is in
    charge of this project and their accountability .
    What does mean; ” Eritrea set the government stake in any mining at 10 percent,
    small claim comparing Sudan 60 percent and Egypt 50 percent”.
    For me sounds something wrong with scandalous politics down to the essence.
    Not impressed at all, this technique needs explanation thoroughly.

  • SINGAPO-ERITREAN April 18, 2012

    Brother Ahmed,
    I can only guess,and I have no knowledge pertainning to minning business….however , the corporations involved in Eritrean mines ,may be forced to “stabilize” Eritrea ,as they have a lot to loose ,because ,the prostitute PFDJ has given them the best deal in the world.Any armed opposition ,will be surveilled by corporation mercenaries.For PFDJ It is more important to control than to develop Eritrea.It is way over my head ,unless also they maybe cooking the books together…please someone with a real information /analysis help ?

    • ahmed saleh April 18, 2012

      What bewildered and make me upset was when I read Eritrea offer of
      10 percent to our stake comparing our neighbors 50 – 60 percent asking
      bid for the nation. I felt someone is squeezing out of our resources. It isn’t
      that enough HGDF offer of cheap labor of our youngs to those foreign
      company exploting by stealing the hard work earned income to be paid at
      national service rate stipend and it’s difference to their selfish interest. I do
      not know but looks fishy to me. I do not trust those bustards, my friend.

      • SINGAPO-ERITREAN April 19, 2012

        Remmember Brother Ahmed,

        The cheapest whore gets more customers ,and works a lot .But, she is the one that gets problem with it`s womb or even aquire AIDS ,Luckily for pfdj ,it is not her womb neither is it the immune system that gets destroyed ,her`s !!