Habesha Cement S.C. has acquired a mining license from the Ministry of Mines (MoM) to excavate minerals that it can use as input for it’s cement production, Fortune reported.

The agreement between the two was concluded on Monday, May 19, 2014 by the representatives of the two entities.

The agreement gives Habesha the right to produce limestone, gypsum, clay and sandstone from a total of 112 hectare of land located in the West Shoa Zone, Oromia State. The sites are found in Meta Robe, Ejere and Ada’a Bergag woredas.

According to Mesfin the agreement will be a valid for 60 years until the minerals are fully excavated. During this period Habesha should produce over 100 Million Tons of limestone.

Mesfin added, “To get the approval, we conducted a feasibility study and environmental assessment on the areas and paid 30.4 Million Birr as compensation”.

Habesha was established in 2008 by 30 shareholders with 600,000 birr initial capital. The company is currently constructing a factory in Beketa and Koro Odo Kebele Oromia State at the cost of 2.34 Billion Birr. The factory is expected to start production in 2015 with a capacity of producing 1.4 Million Tons of cement annually.

When the factory starts production it is expected to use 1.1 Million Tons of limestone, 70 Thousand Tons of gypsum, 288 Thousand Tons of clay, 72 Thousand Tons of sandstone and 450 Thousand Tons of pumice per year.

Source: Fortune