Sichuan Road and Bridge Group (SRBG, 四川路桥集团), recently written about in this blog in connection with its first European contract, the Hålogaland bridge in Norway, has been diversifying into a rather different area. Finance and Investment (金融投资报) reported in late October that SRBG will enter a partnership with the Eritrean government to explore for gold and other metals in a 1000 km2 area in the Bisha-Zara region. The exploration phase, expected to last between three and five years, could require an investment of around $33m.
The first major mining project in Eritrea, the Bisha mine, a joint venture between the Eritrean government and Nevsun from Canada, produced gold from 2011 until a few months ago, when it switched to copper. Nevsun has been criticised for relying in its Eritrean partner’s use of conscripts as “forced labour“, a charge the company denied at a subcommittee meeting in the Canadian Parliament. Eritrea had received a $60m Chinese loan to start the Bisha project in 2007.