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Ethiopia earns US$500 million from mining sector

Iron ore crushing
plant in Ethiopia
Addis Ababa, Ethiopia — 18 April 2012 – More than half a billion US dollars in revenue has been obtained from the mining sector of Ethiopia in the past nine months, according to the country’s Ministry of Mines.

Speaking at review meeting of mining stakeholders here on Saturday, mines minister Sinknesh Ejigu said US$108 million of the stated revenue had been garnered from bigger companies engaged in the sector, reports allAfrica.com. She added that government had collected US$5.7 million in revenue from royalties only during the reported period.

According to her, the Ministry had licensed 257 projects engaged in exploration and production of mines by 137 companies. Some 41 of the companies were joint ventures of domestic and foreign investors while 29 were domestic companies.

Ministry of Mining License Administration director, Gebre Egziabher Mekonnen said some companies had failed to pay land lease and royalty to the respective regions, and to submit timely reports and documents to the Ministry. About 80% of the licensees were presenting timely reports.

According to him, problems had also been observed in facilitating a safe working environment and protection of the ecology. The investors had also been illegally using duty-free vehicles imported for the purpose of mining for other activities, he added.

Mekonnen  revealed that the Ministry had put in place various directives and systems that could help solve problems in the sector.

Source: allAfrica.com. For more information, click here.