Written by REUTERS
Monday, 12 October 2009 00:10

Mineral sector important for economic growth
Eritrea says isolated deaths won’t destabilise industry

ASMARA, Oct 7 (Reuters) – Three Eritreans working for Australian company Chalice Gold Mines Limited (CHN.AX: Quote) have been killed in a shooting incident in the Red Sea state, the company said in a statement on Wednesday.

Such violent deaths, uncommon in Eritrea, are likely to raise concerns among foreign investors in an industry many see as a lifeline to its agriculture-based economy, weakened by the global economic downturn and at the mercy of irregular rainfall.

“(The incident) on a public road 110 km south of its Zara Gold Project earlier this week has resulted in the tragic death of one of its Eritrean employees and two of its Eritrean contractors,” a statement said.

“Based on the information available, the incident was an isolated event unrelated to the company and its operations at the Zara Gold Project,” it added.

Wed Oct 7, 2009