The revenue earned from gold exports in the first quarter of the Ethiopian fiscal year is lower than anticipated according to a report from the Ministry of Mines. Gold exports were affected by lower than projected production by traditional miners and MIDROC holding on to 90% of its production over the period in anticipation of better prices.
The Ministry of Mines had anticipated 61 million US dollars in revenue from 1361.3 kilograms of gold to be produced by the Legedembi mine operated by MIDROC. The mine has an estimated annual production of 4500 kilograms of gold and 1195 kilograms were produced in the first quarter but the company sold just 10.8% of this production due to unfavorable pricing on the market it was said.The Ministry cannot force the miner to make sales although it is under obligation to report its production for each month noted the MoM official. The ministry is nonetheless in the process of negotiating with MIDROC to encourage it to sell at current international prices although the Chief Executive of the company Dr. Arega Yirdaw is yet to be convinced by the argument.
The price of gold mined by artisan miner fetched 51.72 US dollars on the international market while MIDROC is able to sell its gold for 69.33 US dollars due to higher level purity according to an official at the ministry.
Source: Addis Fortune