Eritrea is increasingly focusing on its mining sector to drive economic growth, attracting foreign investment, particularly from China. Major projects, including the Colluli Potash Project and the Bisha Mine, are expected to significantly boost exports and government revenue in the coming years.
Mining Projects in Eritrea
One of the most anticipated projects is the Colluli Potash Project, located in the Danakil Depression. This project, a joint venture between Australia’s Danakali Ltd and the Eritrean National Mining Corporation (ENAMCO), is expected to produce around 944,000 tonnes of potash annually once it reaches full capacity. The mine is projected to make Eritrea one of the world’s leading potash producers by 2026.
Another major site is the Bisha Mine, a polymetallic mine rich in gold, copper, and zinc. Originally operated by Canada’s Nevsun Resources, the mine is now owned by China’s Zijin Mining, which took over in 2019. Since its inception, Bisha has produced over 1 million ounces of gold and continues to extract significant amounts of copper and zinc.
Other projects, such as the Asmara Mining Project and the Kerkasha Project, are also gaining attention. The Asmara Project, owned by China’s SRBG and ENAMCO, consists of multiple deposits with high-grade copper and zinc reserves. The Kerkasha Project, led by Australia’s Andiamo Exploration, is expected to further expand Eritrea’s mining landscape.
Economic Prospects and Challenges
Eritrea’s mining sector plays a crucial role in its economy, with minerals accounting for over 90% of total exports. The government hopes that continued resource development will support economic growth, projected at 2.8% in 2024, according to international financial estimates.
However, the sector faces significant challenges. Infrastructure limitations, including inadequate roads and power supplies, pose obstacles to large-scale mining operations. Additionally, strict government control under President Isaias Afwerki has led to concerns about transparency, labor conditions, and environmental sustainability. Western companies remain hesitant to invest due to political and human rights issues, leaving China as the dominant foreign player in Eritrea’s resource sector.
Despite these hurdles, Eritrea remains committed to expanding its mining industry, viewing it as a key driver of economic resilience. With continued foreign investment and strategic resource management, the country aims to strengthen its position as a key player in global mineral exports.