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Company Response

10 Sep 2014

Author:
South Boulder Mines

South Boulder Mines' response

"South Boulder Mines response to '“The use of Forced Labour at the Colluli Potash Project in Eritrea

The Colluli potash project is 100% owned by the Colluli Share Mining Company which is a 50:50 joint venture company between South Boulder Mines and the Eritrean National Mining Company (ENAMCO)...Neither South Boulder Mines nor the Colluli Mining Share Company (joint venture owner of the Colluli Project) has initiated any roadworks for the Colluli project...The Eritrean Ministry of Energy and Mines is a key project stakeholder and is regularly given project updates with regard to the Colluli project. The Ministry provides critical guidance on approval processes and is regularly informed of project delivery timelines...Project development is being overseen by the Colluli Mining Company board which acts collaboratively to ensure timely development of the project and compliance with the jurisdictional regulatory requirements...South Boulder Mines has an effective working relationship with ENAMCO and in country government stakeholders...All works conducted to date in relation to the Colluli project have been allocated on the basis of competitive tendering processes against defined scopes of work... No suggestion or innuendo has been to South Boulder Mines to exit the Colluli project in favour of another company...Similar allegations were made against the Bisha Mining Share Company and were refuted by independent audit...The Eritrean government does not allow Mining companies to employ people in National Service...In summary, we reject the statements that have been made in the article.