Five companies secure exploration deals from the Ethiopian governmen

ETHIOPIA – The Ministry of Mines and Petroleum in Ethiopia has granted five mineral exploration licenses for local and foreign mining firms.

The minister of Mines and Petroleum Sameul Hurkato (PhD) signed the mineral exploration agreement with the company executives at the Ministry head office in Addis Ababa.

Aleta Land Plc, Rose Ethiopia, Agodayo Metals and AOne Marble and Granite Plc are the four companies that secured their exploration licenses from the ministry. Aleta land secured two exploration licenses.

The four companies with a registered capital of US$1.41 million (44.9 million birr) will be engaged in the exploration of gold, metals and dimension stones in the Amhara and Southern Nations, Nationalities and Peoples Regional State. The companies are expected to create 57 jobs during the exploration phase.

After singing the agreements, Samuel said that the Ethiopian government has given due attention to transform the mining and oil sector. “The government is committed to develop the mining sector. Ethiopia is endowed with a vast mineral and hydrocarbon resources.

“In the coming years we should be able to develop these potential and contribute to the fast-economic development of the country,”

Samuel urged the mining companies to carry out their duties as per their business plan. “Some of the companies that secured licenses from the ministry did not perform well. So, I urge you to engage in the exploration projects as per the plan you submitted to us,” he added.

He further stressed the need to engage local communities in venturing into mineral exploration projects. He said that the ministry started going down to the grass root level to hold discussions with local community leaders and local administrations.

Samuel disclosed that the ministry has established new directorates that promotes the mining potential of the country and that addresses some of the challenges that investors may face.

The minister revealed that the ministry reviewed about 200 mineral exploration and mining licenses and is taking appropriate measures on those who did not undertake their exploration activities as per the schedule

Following the launch of the economic reform program the Ministry of Mines and Petroleum is granting large number of exploration and mining licenses to mining firms. In 2019, the ministry issued more than 30 exploration and mining licenses.

The mining sector used to generate more than US$600 million, the lions share coming from the export of gold. In the past five years the mineral export revenue has been dwindling due to growing contraband trade and sporadic conflicts observed in various regional states.

In 2019, the country earned a meagre US$170 million from mineral exports. The ministry vowed to revamp the sector by overhauling the system and combating illicit mineral trade.                

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