The MIDROC group subsidiary company National Mining Corporation (NMiC) announced that it will be able to extract 4.5 million of the 17 million ounces of gold it has found in Okote area of Southern Oromia Regional State.
It believes it can earn up to USD 4 four billion dollars from this endeavor.
The announcement relates to gold reserves in the North Okote area and a similar finding is expected in the southern part of the same area.
The gold found is in an indicative state which means it requires little exploration. According to Melaku Beza, CEO of the National Mining Corporation (NMiC) should a more thorough study be conducted, there could be the potential of creating a huge gold mine in the area. This would require a great deal of work, but it could be lucrative as they believe there is around an additional 14 million ounces of gold deeper in the ground. The four billion dollar revenue is expected to be gained within 20 years, which could be calculated to an additional two billion dollars from profit taxes and royalty fees for the government.
The announcement is a continuation of the company’s discovery of what is estimated to be the largest gold and base metal reserve in Warri area located in Tigray regional state and gold reserves in Okote, Oromia on December 29, 2011.
Base metals NMiC is exploring include lead, zinc and silver, but not copper for the time being.
This announcement also comes hot on the heels of last year’s announcement by another MIDROC subsidiary company, MIDROC Gold of its finding of a possible 1.1 million ounces of gold worth 1.2 USD billion in the Metekel Zone of the Benishangul Gumuz Regional state in the vicinity of the Renaissance Dam.
Melaku Beza further said that the presence ofthis 4.5 million ounces of indicative gold resources has pushed the projected preliminary gold production capacity of the corporation from a potential 2.9 million ounces to 4.6 million.
He also said the new discovery would mean that the indicative gold reserves would be mined without needing to increase the USD 121 million it has invested in the gold projects.
NMiC also said it’s considering the proposals of eight South African consultancy companies regarding this project site.
In related news, Melaku announced NMiC is working on a study with the Ethiopian government on the production of Soda Ash.
Established in 1993 with a registered capital of 43 million birr, NMiC is owned by the Ethio-Saudi business tycoon Sheik Mohammed Hussein Ali Al-Amoudi. The company launched its operations two years after its incorporation with a Russian trained mining engineer, Melaku Beza, as its founding chief executive officer (CEO).
Acquiring the Awash Marble Factory from the state in 1993, which has an annual capacity of 300,000tns of marble, limestone, and granite, NMiC took concession of the Lege Dembi goldmine, in Odo Shakiso, Borena Zone, Oromia Regional State, for 172 million dollars.
NMiC currently extracts and exports dimension stones including a variety of white marbles which it says are found only in Ethiopia.