Nevsun sees no impact from UN sanctions on Eritrea

(Reuters) - Canadian gold producer Nevsun Resources Ltd said United Nations sanctions against Eritrea should have no direct impact either on the company or its mining operations in the African country.

The U.N. Security Council on Monday expanded sanctions against Eritrea for continuing to provide support to Islamist militants, including al Shabaab, in the virtually lawless Horn of Africa nation of Somalia.

Eritrea's most advanced mining project, Bisha, thought to contain gold, copper and zinc, is run by Nevsun Resources. Earlier this year, Eritrea granted Australia's Chalice Gold Mines two new exploration licenses in a nearby location.

"The State of Eritrea has been a strong partner and shareholder in the Bisha Mining Share Company, a subsidiary of Nevsun," Nevsun's President Cliff Davis said in a statement.

The Bisha Mine is expected to produce more than 1.14 million ounces of gold, 11.9 million ounces of silver, 821 million pounds of copper, and 1.3 billion pounds of zinc during its initially estimated 13-year mine life, according to the company's website.