Nyota Minerals (Ethiopia) Limited revealed that it plans to get a mining production license by September 2012 for gold extraction, which it is initially expected to commence from its Tulu Kapi Gold Project lying on 10 square kilometers of land. The Tulu Kapi Gold Project is located about 500Km west of Addis Ababa in Genji Woreda, Gimbi zone of Oromia region.
The company has taken licenses for open a pit mining and underground mining, with plans to produce up to 3,000 kilograms of gold annually with over a ten year operability basis in that area.
Nyota also has obtained Gold Exploration licenses in Yubdo area and Billa Guliso area both in Oromia regional state and Mendia exploration area in Benishangul Gumuz regional state.
If Nyota gets the license for mining production of gold, it will be the first foreign company to apply for a large scale gold mining license in Ethiopia and only second to the commercial private mining company MIDROC Gold to reach this stage.
According to Dr. Kebede Belete, (Country Manager of Nyota Minerals Limited (Ethiopia), the company which took an exploration license in May 2005 is finishing a bankable feasibility study through its consultant companies on the sites it has leased for gold exploration and extraction and will present it to the Ministry of Mines by June 30.
Kebede further said the study will reveal how much revenue can be generated from the places it has taken licenses from as well as the operation cost, capital and profit the mine pits canproduce.
The feasibility study for this is being done on the Environmental and Social Impact assessment by a South Africa based company; Golder Associates Consulting firm while the Engineering study of the feasibility study is being done by another South Africa based firm, Senet Engineering Consulting.
Nyota has also jointly conducted a separate feasibility study on the project area with a South African based company, S.R.K Consulting firm for the environmental and social impact assessment while a UK based company Wardell Armstrong International consulting firm looked into the mineral resources of the area.
The environmental and social impact assessment relates to the quality of air, water as well as the socio-economic prospect for the region because of the advent of mining.
It is based on this feasibility study that the company asked the Ethiopian government for a mining license on May 2011.
Nyota Minerals Limited is an Australian registered company listed on the Australian stock exchange and the AIM market of London stock exchange.