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Ethiopia Council approves four large-scale gold mining licenses

Ethiopia Council approves four large-scale gold mining licenses

The Council of Ministers (CoM) in Ethiopia has approved four large-scale gold mining licenses. Kurmuk Gold Mining Plc, Zumbara Investment Plc, Etno Mining Plc and Oromia Mining SC have been granted their request to extract the Gold reserve discovered in Gambella and Benshangul Gumuz regional states of the country.

The Council ratified the mining licenses after evaluating the proposal submitted to it by the Ministry of Mining and Petroleum (MoMP), which is headed by the former Addis Ababa Mayor, Takele Uma. The Council reviewed the assessment made by the expert committee established by the Ministry, which deals with the feasibility of the investments, their importance to the country’s economic growth and the initial capital of the companies as well as their credibility and the agreements reached between the Ministry and the companies.

Kurmuk Gold Mining Plc is one of the four companies getting the large-scale gold production license by the CoM. They been conducting gold exploration for the last few years and applied for a production license after acquiring a valuable gold deposit in Kurmuk Woreda – located in Asosa Zone of Benishangul-Gumuz National Regional State.

High social corporate responsibilities

Zumbara is a company registered in Ethiopia and founded by Ethiopian investors to extract the gold reserve found in Asosa Zone, Benishangul Gumuz Region, Odabigilidu Woreda. The company was granted eight years, and will become fully operational within a year and half. Over the next ten years, it plans to produce a total of 744.84 kg of gold, which in the current value of the commodity is estimated to generate total revenue of 1,895,859,725 birr.

The third company Etno Mining Plc, applied for a production license after it found a valuable gold reserve in Dima Woreda, Anuak Zone of Gambella National Regional State. Etno is owned by Norwegian investors and is registered in Ethiopia with an initial investment capital of USD 9.5 million. The large-scale mining license will be valid for only one year and the company is expected to start gold production within 60 days.

Oromia Mining SC, which is registered in Ethiopia and is owned by Ethiopian investors was granted license to extract the gold reserve it found in the Oromia regional state, Guji Zone, Anna Sora Woreda. The initial investment capital of the company is 146,798,184 birr and the license will be valid for six years. It is expected to produce 505.4 kg of gold during the period of the license.

The Office of the Prime Minister said the companies that will be granted with the large-scale mining licenses are obliged to adhere to the principles of high social corporate responsibilities and protect the environment in their respective license areas.

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