Hilton AA
Hilton AA
Hilton AA
Northern
Greenstone Belt
Western
Greenstone
Belt
CIRCUM
YARA
ICL
Production Targets per Annum
Wucahle
Nejo
Hunda Bilisuma,
Meiso/Harar
Geba, Arjo
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
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]