Vale South Africa Exploration Ltd, the second largest metal mining company in the world, secured an industrial mining exploration licence in the Southern Nations Nationalities (SNNPR) and Peoples Region after depositing one million dollars in a closed book account last week.

The company acquired a 1,822sqm plot of land in Konso, SNNPR. And it seeks to explore cobalt, nickel and copper.

Before it applied for the mining licence, Vale South Africa Exploration Ltd had acquired last year a prospecting licence to assess SNNPR's potential. 

Vale is the second company engaged in industrial exploration, next to BHP Billiton, a British company engaged in potash exploration on 17,000sqm land in Dalol, Afar. 

The Ministry of Mines issues licenses for exploration and mining of minerals including limestone, tantalum, gold, platinum and opal.

The ministry has awarded seven production and 56 exploration licences so far, out of which most concessions are in the Oromia and Benishangul Gumuz regional states. Four of the concessions were awarded to local companies including Ambo Nymer Agro and Integrated Industries Share Company and MKB Geosystems Plc.

The Ministry of Mines has cancelled 17 exploration and two mining licences because the companies failed to launch operation during the contract time.

Source: Fortune