Ministry of Mines has revoked 56 mineral exploration licenses it gave for foreign as well as local mining firms. The licenses the companies had were for the exploration of gold and base metals, iron ore and gemstones.

The Communication Directorate at the Ministry confirmed the measures taken against the companies. Nonetheless, it refrained from adding further information.

Ever since the year 1992, Ministry of Mines has granted a total of 200 mineral exploration licenses. 20 years after 1992, during the 2011/2012 fiscal year, the sector generated a total of USD 618 Million. The plan currently is to take this figure to USD Two Billion by the year 2024 and create job opportunities for 8,000 Ethiopians.

According to The Reporter, the federal government intends to build and develop an essentially new economic sector – the large scale mineral sector. The news paper further explained the current policy framework envisions the mineral sector to be the back bone of the industry by 2020-2023.

In related development mining companies are complaining about a directive the Ministry promulgated last year. The directive stipulates mining companies need three years of work experience in order to engage in the sector.

Mineral exploring companies are now complaining the Ministry is not issuing exploration license to mining firms. Some companies claim that they have been waiting for three years after submission of their application.

Study prepared by the World Bank on the Ethiopian mining sector identified hindrances in the licensing procedures of the Ministry. It noted there is a considerable back log in the assessment of exploration license application and the plan is to make assessment on monthly basis.

Ministry of Mines issued 209 exploration licenses and 63 mining licenses. Sixty of the licenses were owned by local companies, 68 by foreign companies and 36 by joint ventures.

Source: The Reporter