Eritrean mining made safer after attack:Chalice Gold

By Jeremy Clarke

ASMARA (Reuters) - An increase in state-provided security will help shield Eritrean mining from violent attacks, an independent analyst said on Friday.

Three miners, Eritrean nationals employed by Australian company Chalice Gold Mines Limited were ambushed and executed on a remote road north-west of the capital last month.

Much hope is pinned on Eritrea's minerals sector, seen on the threshold of a mining boom that may drive its agriculture-based economy.

Over a dozen foreign companies are exploring or about to start in the Red Sea state. Last month's attack created fears that investors could lose their nerve and stay away.

"After taking a look, we are confident it was an isolated incident and not in any way directed at the mining industry," said Kel Donovan, a risk-assessment expert brought in by the Chalice.

"There were no identifiable risks on the travel routes to the mining site or on the site itself," Donovan told Reuters in Asmara, after a week-long review of the company's safety measures as well as travel and emergency procedures.

"Given the presence of law enforcement we find the industry relatively safe."

The managing director of Chalice, Doug Jones, welcomed the increase in security personnel provided by the government to all mining companies.