Ethiopia is ready to approve a mining license for Nyota Minerals Ltd to allow it to develop the Tulu Kapi gold concession that 
it had been in the process of exploring according to Sinknesh Ejigu, Minister of Mines.
The ministry has agreed with the company on the technical and environment terms of the arrangement and is in the process of finalizing the economical aspects said Sinknesh. It is expected that Nyota will obtain the mining license at the end of the negotiations she said.
It is to be remembered that Nyota applied for a ten year license to carry out mining operations in the area after it submitted a Technical Feasibility Study confirming the presence of gold reserves in the area along side an Environmental and Social Impact Assessment which where both evaluated by ministry experts.Nyota is finalizing work on its Definitive Feasibility Study and expects to complete the study in August said Dr. Kebede Hailu Country Manager for Nyota. The company has set the tentative production rate to 3000 kilograms a year although this will be finally established by the DFS.
Nyota has allocated a budget of 200 million US dollars to begin operations as it will be required to set up most infrastructural requirements said Dr. Kebede.
The Ethiopian Ministry of Mines is also reviewing a model contract to be signed with the company which will eventually be endorsed by the Council of Ministers.
Nyota will become the second largest gold miner in the country next to MIDROC Gold Mines should the contract go through as expected.
The Ethiopian Ministry of Mines anticipates to issue 10 more production licenses in the 2012-13 financial year.
Source: Walta Info
