Traditional gold production increases by 144 percent

Ethiopia earned USD 175 million from gold and tantalum exports in the 2010-2011 fiscal year ending June 2011.

Mining licensing and supervision core process owner with the Ministry of Mines, Gebregzabher Mekonnen, told The Reporter that the country exported 187 tons of tantalum valued at USD 22.5 million and 3.6 tons of gold valued at USD 153 million in the stated period.

The Ethiopian National Minerals Development Enterprise is the sole tantalum producer in the country. The tantalum mine is located Kenticha, Borena. Artisanal miners also produce tantalum in the Borena Zone.

Gebregzabher said all the gold was exported by MIDROC Gold, a subsidiary company of MIDROC Ethiopia. MIDROC Gold is the only company engaged in primary gold production. MIDROC produces gold from its Legedembi Mine, 98 percent of whose stoke it bought from the then Ethiopian Privatization Agency for USD 172.3 million. The company earned USD 153 million from the gold it exported this year alone. It has discovered new gold reserve in the Metekel locality in the Benishangul Gumuz Regional State.

According to Gebregzabher, the ministry collected 104 million birr in royalty fees of which 98 million birr of it was paid by MIDROC Gold. The Ministry of Mines this year issued 54 minerals exploration licenses three quarters of which are for gold exploration license.

In a related development, gold produced by artisanal miners and supplied to the National Bank of Ethiopia has increased by 144 percent year-on-year in 2010/2011. Opening a mining exhibition yesterday at the Addis Ababa Exhibition Center, Sinkinesh Ejigu, minister of Mines, said that the amount of gold produced traditionally and supplied to NBE was 2,866 kg in 2009-2010 and that this figure rose to 7000 kg in 2010-2011. Sinknesh said there are more than 100 local and foreign companies engaged in minerals and petroleum exploration work. The total number of mining and petroleum licenses issued so far has reached 200.

The minister said the ministry plans to boost the country’s basic geo-science coverage from the existing 51 percent to 100 percent in the coming five years.
The exhibition was opened by Arkebe Iqubay, advisor to Prime Minister Meles Zenawi, and Sikinesh. The exhibition was organized by the Ministry of Mines in collaboration with Right Africa Advertising. About 68 companies participated in the exhibition, which is due to wind up this evening. Producers of construction materials like cement, granite and marble, mining companies, cooperatives and regional mining bureaus displayed their products and services. No petroleum company participated in the exhibition.

EthiopianReporter