Capital Ethiopia Newspaper

Ambo Nyemer discovers new gold deposit

The under formation Ambo Nyemer has reportedly made a massive gold discovery in Guder Valley.
The first Ethiopian company involved in gold mining has already discovered gold in Western Ethiopia.
In 2011 the company obtained its license from the Ministry of Mines to explore and develop gold deposits in Oromia Regional State in Ginde Beret Wereda of West Shoa Zone and Hore Guduru Welega Zone. It obtained 128,000hct for its investments which also include setting up a cement factory and farming.
The gold exploration area was identified three years ago by Oromia Mining Bureau but no deposit had been discovered until recently when farmers in the area began extracting 24 karat gold (the highest purity) through artisan mining. The local residents have been supplying the National Bank of Ethiopia with about 10Kg of gold per month.
Niguse Gedeffa, marketing head of Ambo Nyemer, told Capital that his company identified additional gold reserves at Guder Valley. They had previously identified other reserves, but this new assessment encouraged them to expand their exploration.
Now they are negotiating with three undisclosed foreign based mining firms to develop the gold investment on a joint venture basis. Niguse said the founders of Ambo are holding talks with the foreign firms about the investment opportunities. He said that the discussion will conclude in the coming few weeks. According to the marketing head after the deal is concluded they will disclose the companies’ names.
Sources told Capital that two of the three foreign based companies are from Canada and China.
Last week Ambo Nyemer opened the bid document of companies who want to study potential cement investment.  This will include geological evaluation and raw material investigation, techno feasibility selection and plant area selection, environmental and social impact assessment, and a marketing study (detail feasibility study). According to Niguse, about 15 local and foreign based companies participated in the bid. He said that the Indian giant, Tata is part of the companies who came from abroad to participate in the bid.  
Meanwhile, the company sold 10 million birr worth of shares to the public from a total of two million shares. Each share is valued at one thousand birr.
Based on the company’s plan gold exploration work will commence in the fiscal year on 21,000hct of land allocated for gold place development from the total of 128,000hct.
The rest of the land will be partially used for cement production because that area also has an enormous limestone deposit-a major ingredient of cement.
The company’s plans include a cement and sugar factory, animal husbandry, poultry farming and mineral development.