The lifting of US sanctions on Eritrea is expected to have a positive effect on the country's mining sector.

Danakali, which formerly held a 50 per cent stake in the Colluli potash project before selling it to the Chinese company SRBG for 121 million dollars, gave its view on the decision through executive chairman Seamus Cornelius.

He described it as a positive and long-awaited development for Eritrea and for many Eritrean friends of the company, saying it removes a heavy and unjustified obstacle to their natural right to social and economic development.

The Australia-based exploration and development company has shifted its Eritrean strategy from potash towards precious and base metals, and is now active in the area around Asmara. The company said it looks forward to continuing its long involvement in mineral exploration and development following the change.

The remarks were relayed by Eritrea's ambassador to Japan, Estifanos Afeworki, in a short social media post on 23 September.

According to its website, Danakali is focused on the Ela Gedel gold project and base metals in the Gash-Barka region, south-west of Asmara.