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Article

20 Aug 2013

Author:
Jenny Vaughan, AFP

Eritrea's minerals: blessing or curse?

...Bisha mine [60 % owned by Nevsun Resources]...is Eritrea's first major international investment, and one that promises enormous profit...Despite criticism by rights groups -- who say large scale mining props up a hardline regime accused of a raft of abuses -- authorities hope the mine will draw investment in other industries to help boost Eritrea's otherwise struggling economy...[and use] mining profits to develop other nascent sectors -- namely agriculture, fisheries and tourism -- in order to avoid the resource curse that plagues other mineral-rich resources in Africa...Last January, Human Rights Watch accused Nevsun of using forced labour...claims rejected by Asmara. Moxham said employees are all are hired willingly. "Anybody who is employed here has to be released from the military... we have a whole lot of checks and balances," he said. But many people in the capital Asmara question how mining revenues are being spent. "Where?", said one man when asked whether the government was spending profits wisely.