Traditional artisan gold miners in Ethiopia have failed to meet expectations of output, over the last two quarters. Artisan miners have produced 3809kg of gold in the past two months which is 44% less than the targets set by the Ministry of Mines in Ethiopia. 
The persistent decrease in price seen in the international market has discouraged miners according to Tamrat Mojo, Head of the Traditional Mines, Manufacturing, & Transactions Department of the Ministry of Mines.
The National Bank of Ethiopia has offered a 5% margin above the international price to encourage production although this incentive has failed to work as effectively after the decentralization of the market, which delegated the Commercial Bank to facilitate gold purchases through its branches in the gold producing regions.Some producers expressed dissatisfaction with this arrangement as it entails an additional 2% service charge.
The lowered output can also be a reflection of deteriorating gold reserves in some of the areas mined by traditional artisans noted an expert working with a private mining firm.
The production potential of the gold reserves being mined by traditional miners has not been surveyed by the Ministry of Mines said the expert.
It is to be remembered that gold production by traditional miners went beyond expectation in the 2010-11 fiscal year with 6,515kgs being sold to the national bank.
Source: Addis Fortune
