Capital Ethiopia Newspaper

MoM meets 75 percent of its mining revenue targets

The Ministry of Mines (MoM) earned the country USD 293 million over the last six months of this fiscal year. Artisanal mining brought in USD 218.2 million which was 47 percent more than they had hoped for. By the end of the year they expect just under USD 800 million in total revenue and USD 528 million of that from artisanal mining.
Ethiopia earned USD 293 million from 5,484Kg of Gold, 145 tons of Tantalum, 7,339Kg of jewels and minerals and 532M3 of marble as well as 350 grams of Platinum.
Bacha Faji public relation and communication department head at MoM said they also earned 600 thousand dollars conducting geological surveys. He added that they worked overtime to conduct 22,409 mining samples; significantly more than planned.     
MoM handed out 31 mining exploration and sampling licenses and two mining production licenses. These types of investment licenses have the potential to be worth USD 50.3 million. They will work in mining and mineral exportation. 
Bacha said the USD 293 million the ministry has gotten in the six months period exceeded the figure from last year by only USD 1 million because of factors like international Gold prices fluctuation, lack of knowledge and understanding from some of the artisanal miners about regional bureaus for gold buying and lack of its professionals in the regions. 
He explained that mines are non-renewable so they enforce regulations to make sure mining is being done correctly. Ethiopia earned roughly USD 500 million in mining revenue last Ethiopian fiscal year.
He further noted that the temporary ban on new mining licenses because of the huge influx of interested investors will be lifted shortly at a press conference to be given by the Ministry of Mines representative Sinkinesh Ejjigu.
MoM beat in house targets, earning the country USD 3.6 million up from its target of USD 3.1 million.  In house work includes mining taxes, royalties, investment licenses grant and renewals.
Another revenue MoM entered into the Ethiopian government’s coffer was from petroleum licenses renting land, and training; earning about USD 13.2 million which is a whopping increase from the USD 1.6 million it hoped to earn.
Currently there are about eight local and international petroleum companies engaged in oil exploration.  These are Tullow oil, South West, which recently took a new petroleum license in Gambella, the Canadian Firm Africa Oil which has also started offshore oil drilling in Somalia. The other companies are Cal Valley, Afar, Fulcon and the Chinese owned Petro Trans.
Petro Trans was the only company that received Petroleum Exploration license in the six month period signing five agreements to develop the Calub and Hilala Gas fields.