Eritrea+Minerals

=China EXIM Bank's USD 60 Million Loan To Eritrean National Mining Company (ENAMCO) For The Bisha Mine Prompts Several Chinese Exploration Companies To Invest In Eritrean Minerals, Which Will Likely Continue Over The Next Five Years=

Executive Summary:
Investments like China's EXIM Bank 2010 finalized USD 60 million loan to ENAMCO to own 40 percent of the Bisha Mine, which contains gold copper and zinc, are likely to continue over the next five years. This investment spurred Chinese exploration companies such as China Africa Huakan Investment Co, who holds ground in Seroa, NW of Keren, to sample soil and sediment from the entire area, similar to Land Energy Group (China) Ltd, who is conducting their samples in an area west of Barentu. The Bisha Mine is Eritrea's first major international investment, and is likely the starting point for more international investment in its unexplored regions.

Discussion:
Despite Eritrea's lack of petroleum and natural gas, Eritrea is rich in strategic minerals such as gold, potash, zinc, copper, and salt. The Bisha Mine is currently in its third year of production of gold, copper, and zinc, and is 40 percent owned by the Eritrean government after a loan of USD 60 million. Eritrea makes a USD 1 million profit a day from its 40 percent share.

The Bisha Mine also has prompted 17 exploration companies in Eritrea, searching for more gold, copper, zinc, and potash. Chinese companies like China Africa Juakan Investment Co and Land Energy Group (China) Litd are collecting soil samples around the country and applying to do more samples in Eritrea. Other companies such as Donia and its affiliate Shong Chang Mining Co Ltd hold multiple licenses for exploration work, including four for iron ore and three for base metals. These companies show the interest China has in Eritrea's strategic minerals that have yet to be fully discovered and exploited.