The Ethiopian Ministry of Mines has suspended issuing mining exploration licenses as of last week. The ministry has stopped issuing licenses to take stock of the local and foreign companies it has already provide licenses to according to Tolossa Shagi Moti State Minister of Mines.

The ministry needs to clarify which companies are active according to the agreements they entered upon receiving licensing and which have failed to commence operation explained Tolossa.

The Ministry of Mines also needs to carry out technical evaluations on existing exploration activities which will take some time due to limited capacity he said.

There have been a significant number of applications made for new exploration sites which require the ministry to assess the operations that are already active said Tolossa. The Ministry has decided to suspend issuing new licenses until it can finalize these tasks he added.

The Ethiopian mines ministry is happy that a large number of foreign corporations are interested in the mining sector however the ministry’s ability to process licenses applications and monitor existing activities is hampered by the lose of senior geologists according to Tolossa.

The Ethiopian ministry has granted an estimated 200 minerals exploration licenses to above 100 local and international companies. Amongst these are well known mining corporations such as Vale and BHP.

The entrance of such companies has been a mixed blessing in that many qualified professionals have left the ministry to find employment with them it is said.

Source: Reporter