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A British national working in Eritrea was killed in the western Bisha area at the weekend, the British embassy in Asmara confirmed on Thursday.
The man, Timothy Nutt, was working for the Canadian Nevsun company which is mining for gold in the area.
British ambassador Mike Murray told IRIN that the Eritrean authorities were investigating the murder and the embassy was in close contact with the government regarding the matter.
"We will not speculate about the cause of his death," the ambassador added.
A statement issued by Eritrea's foreign ministry blamed the radical Eritrean Islamic Jihad Movement (EIJM) for the killing.
"It is clear that this cowardly act of terror is designed to discourage investment in Eritrea by terrorising foreign investors," the statement added.
"The government of Eritrea extends its condolences to the family of the deceased and vows that it will hunt down the perpetrators of this crime."
Eritrea's Minister of Energy and Mines Tesfai Ghebreselassi expressed shock over the killing which he described as a "heartbreaking act of savagery".
This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions