Ethiopia has prepared a draft regulation which is said to compel mining companies to make financial contributions for the development of the areas they are carrying out mining. The draft document is prepared by the Ministry of Mines, Petroleum and Natural Gas.

The draft regulation states the contribution by the mining companies is going to be made from the profits they have made. The proclamation in force states companies should make contribution, yet fails to clearly state the amount of money, Meseret Fufa, Environment and Community Senior Expert at the Ministry, explained.

Following such ambiguity, out of 58 companies only 48 of them make contribution. Some companies contribute up to 2 million Birr while others make only 50,000 Birr contribution. The contributions are not based on the profits and they are being made voluntarily.

The Ministry is preparing the regulation following the gap, Tewodors Gebreegziabher, State Minister at the Ministry.

According to him, the regulation will also be applicable to companies engaged in the mining business at state level.

Source: Ethiopian Herald