Thursday, October 09, 2014

Eritrea's Mining Industry

The small east African country of Eritrea has started a mining industry and is doing it right. To start with Eritrea is receiving 40% of the profits generated by its first gold/copper mine.
Compare this to Tanzania where Anglo-American mining company operates one of the worlds largest gold mines and pays a whopping 4% royalty to the government.
Thanks to Wikileaks we know that the USA forced sanctions against Eritrea through the UN Security Council in 2009, not to punish Eritrea for allegedly supporting “terrorism” (i.e. Al Shabab in Somalia) but in an attempt to sabotage the start of Eritrea’s mining industry.
40% vs. 4%? Small wonder that Eritrea’s deal threatens western interests for if the rest of Africa takes note and begins to follow suit in the deals cut allowing exploitation of the continents resources Pax Americana and its vassals are facing a serious problem.

From Thomas C. Mountain who has been living and writing from Eritrea since 2006.



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