Ministry of Mines (MoM) disclosed it is not going to issue mineral exploration license in the South western part of Ethiopia, despite the area is known for its mineral deposits.

The Ministry stated the reason why it suspended issuing mining license for that particular area as it has reserved the area for joint geological study being conducted by Ethiopian and Chinese geological survey institute.

A public notice issued by the ministry also included it will not accept applications from companies requesting exploration areas in this part of the country for unspecific period of time.

The government of China and Ethiopia signed deals which paved the way for the two countries’ survey institutes to undertake a joint geological study in the South Western part of Ethiopia since 2012. They are now trying to identify the mineral resources of the concession area and learn about the types of the existing minerals.

According to The Reporter, the cost of the exploration project is covered by the Chinese Government. Nonetheless, this has not pleased Ethiopian and foreign mining companies. They claim it will give comparative advantage for Chinese mining firms.

Bacha Fuji, Public Relations and Communication Directorate director at the Ministry, explained the the Chinese and Ethiopian geological survey institutes have been assessing the potential of the area for the past two years. They are adding value to the concession. Hence, the Mineral Licensing and Administration Directorate will not process exploration license applications until the joint study is finalized,” he furthered.

He added other areas that are not held by the joint study are open for interested local and foreign investors.

Source: The Reporter