Mines Ministry starts issuing licenceI think the article was written on May 18, 2013
Mines Ministry starts issuing licence
The Ministry of Mines (MoM) announced that it started issuing mining exploration licences as of yesterday. The suspension of issuing new licences was made due to the ministry’s ability to process and monitor was hampered due to the proliferation of mining companies and the lose of senior geologists, according to Director of Public Relations and Communication Directorate Bacha Faji.
At a press conference held on the premises, of the Ministry Bacha noted that, the decision to suspend the issuance of new licenses in November 2011 was first to clarify which companies are active according to the agreements they entered upon receiving licensing and to carry out technical evaluations on existing exploration activities which have failed to commence operation.
Currently, minus Gas and Petrolatum we have some 135 companies working on 245 licences. The mining sector is already contributing greatly to the realization of the GTP. The sector secured 1.5 bln. USD, the lion share from gold mining, in the last two and half years of the GTP, he added.
According to him,MoM is building its human resource capacity through short and long term trainings in a continuous manner to fill the gap.
Licensing and Administration Directorate Director, Sisay Ayalew also said, realizing the friendly investment climate more local and foreign companies investors are showing interest to explore in Ethiopia. Accordingly,in addition to the already in operation, six foreign companies are engaged in exploration of oil and natural gas in the country.
The ministry is looking to develop a progressive resource sector to realize the goals set by the GTP with particular attention being paid to mining and extraction of Iron, Coal and other mineral resources as input to industries given priority by the government,he added .
Sisay further indicated that ensuring transparency in the mining sector according to the law and regulation has been particularly important in order to tackle rent seeking and malpractices. “We are revising our mining laws and regulation and creating a system that promote transparency and fair trade”, he added.
At a wider level, Sisay also said we are working towards creating a mining industry from mining. More benefit is reaped from value added production rather than exporting the raw material.
Ethiopia opened its mining sector to private investors in 1991. The recent enactment of the Mining Operations Proclamation No. 678/2010, which came into effect in 2010, revised mining laws in Ethiopia by broadening the range of mining licence available. The Proclamation confirms the requirement of environmental impact assessments and regulates health and safety matters.
New legislative incentives have been introduced. These include lower royalty payment levels, exemption from customs duty and taxes on mining equipment, guarantees in respect of the right to sell minerals locally or abroad and the availability of dispute resolution procedures, such as arbitration.,among others.
https://www.ethpress.gov.et/herald/index.php/herald/national-news/1729-mines-ministry-starts-issuing-licence