Eritrea, the country with the second highest number of archaeological and historical discoveries in Africa, after Egypt, with over 80,000 sites, has abundant natural resources like gold, copper, potash, zinc, salt, and possibly oil and gas.
Most of its mineral wealth is in the Arabian-Nubian Shield, covering 70% of the country. Major projects such as the Bisha Mine and Colluli Potash Project show its capacity to produce 350,000 ounces of gold yearly and 10,000 tons of potash daily for over a century.
The Red Sea basin also has oil and gas, but exploration is still limited. Fertile soil supports agriculture, and the coastline exports fish to Europe and Asia.
Though issues like environmental degradation and poor infrastructure exist, natural resources have contributed up to 26.96% of the GDP in some years.
Eritrea’s Natural Resources And Their Locations
Here is a list of natural resources that have been discovered in Eritrea and their locations:
| Natural Resources | Locations |
|---|---|
| Gold | Bisha Mine, Zara Mining Area |
| Copper | Bisha Mine, Asmara Mining District |
| Potash | Colluli Potash Project, Danakil Depression |
| Zinc | Asmara Mining District |
| Salt | Massawa and coastal areas |
| Oil and Natural Gas | Red Sea Basin |
| Limestone | Gash-Barka Region |
| Granite and Marble | Gash-Barka Region |
| Iron Ore | Debub Region |
| Fish (Marine Resource) | Red Sea coastline |
Discoveries Of Eritrea’s Natural Resources
The discovery of gold and copper at the Bisha Mine in 2005 was a big moment for Eritrea’s mining sector. Located in the northern region, Bisha became the country’s largest mining operation and a major source of export revenue.
Its high-grade gold and copper ores gained attention in global markets. In 2010, the Colluli Potash Project in the Danakil Depression revealed one of the world’s largest potash reserves.
With an estimated 1.5 billion tons, the deposit has the potential to meet global demand for years. Potash, used mainly in fertilizers, is expected to position Eritrea as a major future supplier in the global market.
Zinc was discovered in the Asmara Mining District during the 1990s. Though smaller in scale, it is still a valuable asset in the country’s resource portfolio.
Eritrea also has significant salt reserves, particularly near Massawa along the Red Sea, where salt extraction has a long history.
The Red Sea Basin is believed to have oil and natural gas, though exploration is limited. If proven, these reserves could diversify Eritrea’s economy and add to its growing resource base.
Viability Of Eritrea’s Natural Resources
Eritrea’s natural resources are considered highly viable due to their quality, abundance, and favorable geology. The country’s mineral wealth is largely found in the Arabian-Nubian Shield, known for its rich deposits of gold, copper, potash, and other key minerals.
Although Eritrea is new to large-scale mining, it has shown strong potential for sustainable development in the sector.
Projects like the Colluli Potash Project show this potential. Located in the Danakil Depression, it has over 1.08 billion tons of ore with 18% potassium chloride, making it one of the most promising potash reserves globally.
Its shallow depth lowers extraction costs, supporting large-scale operations. The Bisha Mine also plays a part, producing high-grade gold and copper, both in high demand across global markets.
Geological conditions also support Eritrea’s mining prospects. The Arabian-Nubian Shield spans about 60% of the country and hosts notable volcanogenic massive sulfide and shear-hosted gold deposits.
Northern regions with ultrabasic rocks suggest potential nickel and chromite, while the Danakil Depression contains valuable potash and sulfur evaporites.
However, infrastructure is still growing, and improvements in road networks and key ports like Massawa and Assab are helping mining operations.
Yet, access to power and water is a challenge for expansion. To support investment, Eritrea has introduced mining policies such as Proclamation No. 68/1995, which offers clear legal frameworks for exploration and extraction. These steps have attracted foreign companies like Zijin Mining Group and SRBG, increasing investor confidence.
Export Potential Of Eritrea’s Natural Resources
Eritrea’s natural resources contribute to the country’s export economy, with mining products dominating merchandise exports. In 2023, copper ore ($190 million), zinc ore ($188 million), and gold ($136 million) were the country’s top exports.
1. Current Export Contributions
The Bisha Mine is Eritrea’s leading mining site, producing volumes of copper and zinc ore. Combined, these two minerals brought in nearly $378 million in 2023, making them the top contributors to export revenue.
Gold exports are also strong, reaching $136 million. The sector continues to attract foreign investment and provide employment opportunities.
Additionally, the Colluli Potash Project, though still in development, is expected to become a major contributor to export earnings.
Potash, a key input for fertilizers, positions Eritrea to serve international agricultural markets. Once fully operational, the project could substantially boost national export revenues.
2. Marine And Other Exports
Aside from mining, Eritrea also exports salt and other minerals, mainly to European and Asian markets. Its Red Sea access facilitates efficient shipping. Marine exports, including fish and seafood, support diversification and provide additional income sources.
The mining sector is expected to remain the main driver of export growth. The African Development Bank projects that mining and services will lead GDP expansion through 2025. By 2030, potash alone could represent up to half of Eritrea’s total exports.
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Economic Impact Of Eritrea’s Natural Resources
Eritrea’s natural resources continue to drive economic growth and improve living standards. In 2023, mining contributed nearly 30% of the country’s GDP, generating over $500 million in export revenues.
The sector has been a key source of employment and development, especially in regions like Gash-Barka and the Danakil Depression. Resource revenues have supported infrastructure projects, including schools, hospitals, and roads.
1. GDP Contribution And Export Performance
Mining exports, mainly gold, copper, zinc, and potash, contribute greatly to Eritrea’s economy. The Bisha Mine is top in mineral exports, while the Colluli Potash Project is expected to boost earnings significantly once operational. In 2023 alone, mineral exports generated around $520 million.
2. Job Creation
The mining industry has created over 4,000 direct jobs and many more indirectly. These jobs provide reliable income, helping reduce poverty in rural areas. In mining zones like those near the Bisha Mine, revenue has funded better schools and healthcare facilities.
Potash production also supports agriculture, supplying fertilizers that increase crop yields and benefit farmers both locally and abroad.
3. Infrastructure Growth And Poverty Reduction
Natural resource income has helped the government expand access to essential services. Roads, clinics, and schools funded through mining revenues have improved daily life across various communities.
Potash, in particular, offers long-term agricultural benefits by improving fertilizer availability and boosting farm productivity.