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    Hilton AA

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    The document provides an overview of Ethiopia's mining sector, including its geology, mineral potential, regulatory framework, and recent developments. Some key points: - Ethiopia has a diverse geology that is highly prospective for minerals but remains under-explored. It is known to have gold, tantalum, potash, marble and other deposits. - The regulatory framework aims to attract investment through reasonable taxes and royalty rates while restricting the government's role to regulation. Licensing procedures have also recently been amended. - Ethiopia has significant identified potash, coal, and geothermal resources and is pursuing development to become a major producer and exporter. - The ministry and regional states share responsibilities for issuing

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    Hilton AA

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    samson
    127 views26 pages
    The document provides an overview of Ethiopia's mining sector, including its geology, mineral potential, regulatory framework, and recent developments. Some key points: - Ethiopia has a diverse geology that is highly prospective for minerals but remains under-explored. It is known to have gold, tantalum, potash, marble and other deposits. - The regulatory framework aims to attract investment through reasonable taxes and royalty rates while restricting the government's role to regulation. Licensing procedures have also recently been amended. - Ethiopia has significant identified potash, coal, and geothermal resources and is pursuing development to become a major producer and exporter. - The ministry and regional states share responsibilities for issuing

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    The document provides an overview of Ethiopia's mining sector, including its geology, mineral potential, regulatory framework, and recent developments. Some key points: - Ethiopia has a diverse geology that is highly prospective for minerals but remains under-explored. It is known to have gold, tantalum, potash, marble and other deposits. - The regulatory framework aims to attract investment through reasonable taxes and royalty rates while restricting the government's role to regulation. Licensing procedures have also recently been amended. - Ethiopia has significant identified potash, coal, and geothermal resources and is pursuing development to become a major producer and exporter. - The ministry and regional states share responsibilities for issuing

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    127 views26 pages

    Hilton AA

    Uploaded by

    samson
    The document provides an overview of Ethiopia's mining sector, including its geology, mineral potential, regulatory framework, and recent developments. Some key points: - Ethiopia has a diverse geology that is highly prospective for minerals but remains under-explored. It is known to have gold, tantalum, potash, marble and other deposits. - The regulatory framework aims to attract investment through reasonable taxes and royalty rates while restricting the government's role to regulation. Licensing procedures have also recently been amended. - Ethiopia has significant identified potash, coal, and geothermal resources and is pursuing development to become a major producer and exporter. - The ministry and regional states share responsibilities for issuing

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    of 26

    Federal Democratic Republic of Ethiopia

    Ministry of Mines, Petroleum & Natural Gas

    Overview of Mining sector in Ethiopia


    Abebe Bedassa (MSc. in Mineral Exploration)
    May 11 , 2016
    Addis Ababa
    Outline
    Ethiopia Overview
    Geological & Mineral Potential
    Geology
    Mineral Potential
    Basic data coverage
    Regulatory & institutional Framework
    Legal
    Institutional
    Recent Development
    Changes on legislations & procedures
    on Status of the licenses
    Challenges
    Conclusion
    • Is located in East Africa with surface area of 1.14
    ETHIOPIA OVERVIEW million Km2
    • Bordered with The Sudan, South Sudan, Kenya,
    Somalia, Eritrea and Djibouti,
    • Population: above 90 million
    • Government : Federal Democratic Republic
    consisting of 9 National Regional States and 2 city
    Administrations
    • Agricultural country mainly exporting coffee, oil
    seed, flower, leather etc.
    • Highly prospective, under explored & currently
    exporting gold, tantalum, dimension stones and
    gemstones. The mining sector contributes less
    than 5%..
    • Gives much emphasis on expanding Infrastructure
    (power, telecom, road and railway) to support the
    growing economic development,
    • Registered double digit Economic growth Since
    2004,
    • Ethiopian Air Lines has wide international &
    • Addis Ababa the Capital City of Ethiopia domestic network
    • Official language is Amharic & more than 70
    is the seat of the African Union (AU), and
    languages & English widely spoken) and
    Head Quarter of the United Nations • Christianity & Islam are major religions
    Economic Commission for Africa and • Installed power to date 4200MW & will grow to
    other Regional and International about 10,000MW when the Renaissance Dam is
    to be completed in 2017.Another 7000MW is
    Organizations
    Planned in GTP 2
    Geology & Mineral potential of Ethiopia
     The Ethiopian Geology
    consists of:
    a)Precambrian basement
    rocks covers 25% of the land
    mass. It contains exposed
    belts in three parts of the
    country. i.e Northern Green
    Stone Belt (GSB), Western
    GSB, & Southern GSB
    Palaeozoic – few places
    Mesozoic sed.Rocks-25%
    Cenozoic volc. & sed.50%
    • Highland Tertiary volcanics
    (basalts)
    • Tertiary as well as
    Quaternary volcanics &
    sediments of the rift valley
    Simplified Geological Map of Ethiopia

    Northern
    Greenstone Belt

    Western
    Greenstone
    Belt

    Southern Greenstone Belt


    Northern Belt:-
    Mineral Potential Terkemti, Adi Zersenay, zager
    Western & SWBelt:- •Primary gold mineralization
    •Tulu Kape,Dul, Metekel, Chamo, •Base Metals mineralization
    Oda- Godere Primary gold deposits •Placer gold occurrences &
    •Yubdo Platnium deposit deposits
    •Bikilal, , Sirba & Kore iron
    deposits& mineralization
    •Keta & Abetselo Base metals
    Mineralization.
    •Placer Gold deposits

    Southern Belt:- Adola & Moyale


    •Lege –Dembi, Sakaro, Moyale, Dawa,
    OkotePrimary Gold deposits &
    occurrence.
    •Adola Nickel
    •Kenticha Tanatalum
    •Placer gold deposits
    •Chromite mineralization
    Industrial Minerals
    Cement Raw Minerals:-
    Limestone,Gypsum,Clay,Pumice
    - Million tones
    Fertilizer Raw Minerals:-
    Potash
    billion tones & phosphate-
    181Mt
    Ceramics Raw Minerals:-
    Kaolin-20Mt, Feldspar-500000t,
    Quartz-400000t
    Glass Raw Minerals
    Silica Sand-more than 3.4Mt,
    Dimension Stones:-
    Marble,Granite,Limestone,Sand Gemstones:-
    Stone – in Million tone. Opal, Emerald, Sapphire,
    Diatomite- 120Mt,Bentonite- Peridot, Tourmaline, garnet
    Ethiopia becomes a major world potash producer for up to 100 years

     Potash companies working in partnership with a strong, stable and cooperative


    Government.
     Ethiopia regarded as a low-risk, investment-friendly environment

     Become a world class deposit with low operation cost

     Major source of foreign income to Ethiopia

     Employment and development in Ethiopia

     Partnership with the Community


     Open blocks ( 10,000 km2) is vacant to apply
    Potash project location

    CIRCUM

    YARA

    ICL
    Production Targets per Annum

    2 million tonnes MOP


    0.75 million tonnes SOP

    0.60 million tonnes SOP

    2 million tonnes MOP & SOP

    Total annual production of 5.35 million tonnes potash


    is currently planned with significant scope for expansion.
    Coal occurrences & deposits (~500 Million tons)
    in the Tertiary sediments
    Oromia RS = Dilbi – Moye – Yayu – Gojeb - Arjo - Nejo
    Amara RS = Chilga - Mush Valley - Wuchale

    Wucahle

    Debre Libanos & Mugher Mush Valley

    Nejo

    Hunda Bilisuma,
    Meiso/Harar
    Geba, Arjo

    Delbi, Moye, Yayu

    Morca, Walayta-
    Oil Shale – 1 billion
    Sodo
    tones
    Location Map of Iron occurrences &
    deposits of Ethiopia
    Geothermal
    Potential
    •In the Ethiopian Rift Valley
    •More than 10,000MW for
    power generation
    • More than 22
    geothermal Fields identified
    •Three of the Fields
    (Aluto Langano,
    Tendaho & Corbeti)
    are at detailed stage
    2.3. Basic Data Coverage
    • Basic geological mapping coverage
    at a scale 1:250,000 is 82%
    • Ground gravity coverage at
    1:500,000 is 100%
    • Airborne geophysical
    (Electro-magnetic,
    Magnetics & Radiometrics)
    coverage is 30% of the
    Landmass of the country

    14
    Regulatory Framework
     Legislations:
     Mining proc.no.678/2010 (as amended)
     Mining Income Tax No.53/1993 (as amended)
     Mining Regulation no.182/1994
    • Income tax for revenues generated from Mining Operations is
    fixed to 25% and is calculated from net income.
    • The law provides companies to have free of duties, import, and
    export taxes.
     The aim of legislations:
     Aimed to attract investment & guarantee rights of
    investors
     Restricted the role of government to regulation of the
    sector and generation and dissemination of basic geo-
    science data
     promotion & development of the mineral & petroleum
    Recent Development/ Changes on legislations & Procedures by
    proclamation 816/2013
    • Amendment on the Mining Operations Proclamation No. 678/2010;
    – Reduction of Royalty on Gold from 8% to 7%,
    – New license type ; Special Small scale Mining and Retention License are added
    to the already existing types of licenses
    – Amendments to nature of relinquishment
    • Amendment of the Mining Income Tax Proclamation
    – Reduction of Income Tax from 35% to 25%,
    • Some changes to licensing procedures
    – inclusion of biding procedures and
    – Evaluation committee established to evaluate proposals
    – Open blocks/areas could be checked at a desk from ICT Directorate
    – Provision of PDF format license information upon request
    • Cadastre System on operation
    • Ethiopia accepts global EITI principles & requirements. Based on this, Ethiopia
    obtained EITI Candidacy Status
    Types of licenses (7 types) for Hard Minerals
    3.4. Institutional Framework
    Minister National Regional States

    State Minister State Minister for


    for Solid Petroleum&
    Minerals Natural gas

    Geological
    Survey of
    Ethiopia
    Duties & responsibilities of Institutions
    Regional States are mandated to:
     Issue artisanal mining licenses for nationals
     Issue for domestic investors:
     reconnaissance, Exploration and retention licensees with
    respect to construction and industrial minerals,
     small scale mining licenses for industrial minerals,
     Small and large scale mining licenses for construction
    minerals,
    The Ministry have the powers and duties to:
     Issue reconnaissance, exploration, retention and
    mining license other than those to be issued by the
    states,
    Geological Survey of Ethiopia is responsible to carry out
    basic geological mapping, mineral exploration & other
    We welcome potential investors
    • A total of 129 mineral exploration licenses and 71
    mining licenses (gold, potash, tantalum, marble,
    coal, iron etc) are granted in hard mineral sector
    owned by foreign, joint-venture and local investors.

    20
    Recent Development on status of Mineral exploration
    Licenses
    Some of exploration companies are advanced stage of exploration and
    development stage of Mining.
    Potash: Huge Resource
    -Allana/ICL Potash has acquired mining license and is on
    development work. Two Million tons of annual run of mine (ROM).
    -Yara Dallol applied for potash large scale mining. 0.6 M (SOP) tons
    ROM
    -Circum minerals applied for large scale potash mining. 2.7 million
    tons ROM
    Advanced & development stage exploration for Gold & Base
    metals;
    - Kefi Minerals, acquired gold and silver mining licenses and is on
    development stage in Oromia, western Ethiopia.
    -Midroc-Metekel project is also at final stage to be granted
    Mining license
    -
     ASCOM precious metals co. at Dish
    mountain, National Mining at Okote,
    TRI at Adi Dairo & West shire are at
    pre-feasibility stage of gold & Base
    metals exploration. There are other
    projects at advanced stage of
    exploration.
    Mineral operations activities contribution
     Revenue
    • Royalty 2 – 7%
    • Income tax 25%
    • Government free equity 5%
     Foreign currency earnings
     Import materials replacement
     Job opportunity
     Community development
     Infrastructure development
     Knowledge transfer 23
    CHALLENGES
    • Human Resource
    -lack of skilled workers especially in the
    fields of mine Geology, mining engineering,
    mineral economics etc.
    -migration/flow to private sector
    • Gap between mining industry & educational
    institutions
    • Training and competency.
    • Infrastructure
    Conclusion
    Mining in Ethiopia, particularly traditional gold mining has long
    history and still is becoming important in foreign currency earning &
    is playing important role in the economic development of the country
    & livelihood of the people
    The investment in the sector is growing from time to time and
    Ethiopia is becoming a good investment destination mainly due to:
    • Political stability and good governance,
    • Conducive mining investment policy and environment,
    • Attractive and competitive legal frameworks
    • Geological favourability to host a wide variety of minerals
    • Highly prospective but under explored geologically,
    • Availability of numerous mineral occurrences;
    • Availability of labor and hospitable people,
    • Intensive infrastructure development
    The government of Ethiopia welcomes potential investors to invest
    in the mineral industry of Ethiopia for Mutual benefit.
    Address:
    Ministry of Mines
    • Website: www.mom.gov.et
    • E-mail: [email protected]

    Geological Survey
    • Website: www.gse.gov.et
    • E-mail: [email protected]

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