Capital Ethiopia Newspaper

Gold earning increases but fail to meet target

Traditionally mined gold earned Ethiopia USD 368.4 million in the last 10 months of the current fiscal year an increase of USD 125.1 million than the same period last year.
National Bank of Ethiopia (NBE) the regulatory body that buys gold from miners opened four regional branches in Mekele, Hawassa, Jimma and Assosa to facilitate smoother and easier relationships with artisanal miners.
In total 6,786.34 kilograms of gold 154.6 tons of tantalum and 350 kilograms of platinum were presented to NBE during the period achieving the vast bulk of the USD 382.4 million earned during the ten month period..
Bacha Faji, Public Relation and Communication Department Head at the Ministry of Mines said that the ministry was hoping to earn more during this fiscal year but said that they are still pleased that it is more than last year.
“The ongoing volatility of world gold prices, shortage of geologists, especially at mining locations as well as the public’s lack of awareness about the locations of the four regional drop-off centers for gold contributed to a lackluster performance,” Bacha told Capital.
Oromia and Tigray regional states were the largest contributors of Artisanal gold to the central bank. However it was considered an underachievement because it was at best not more than  70 percent of the Artisanal goal they had hoped to acquire during the past ten months of the current budget year that is going to end on July 7.
Oromia contributed 2284.6Kg of gold or about 70 percent of the target of 3,275 Kg, while Tigray similarly below bar with 57.1 percent of plan in achievement contributing 1733.42Kg of gold out of the 3,264Kg of gold they planned to sell to the central bank during the 10 month period.
Both regional states forecasted contributions of about 4,000Kg of gold to NBE this fiscal year.
However the two regional states weren’t the only regions lagging behind their projections with the third largest contributing region Benishangul Gumuz regional state also achieving 60 percent of its target or just above 963.3Kg of gold supplied to the central bank. The region envisages achieving the goal of supplying 2,000Kg of gold in the remaining two months of the current fiscal year. 
Another regional state that was below target in this regard was the Southern Nations and Nationalities Peoples’ Regional State with the most woeful performance, bringing nearly 598.7Kg of artisanal mined gold to the central market, just above 37.5 percent of the stated aim. These figures indicate that the regional state’s plans to achieve the 2,000Kg of gold supply to the central market are very unlikely to be met.
Gambella regional state and Amhara regional state were the exception to the trend, achieving beyond their modest targets. Gambella supplied 935.4Kg of gold above 113.1 percent of their plan in the 10 month period, while Amhara, which had the smallest contribution of all the regional states, supplied almost 271Kg of gold an impressive 163.15 percent from the target.
Gambella is well in progress to achieve or even surpass 1,000Kg of gold planned to be supplied to NBE in the whole of the current fiscal year, while Amhara has already surpassed its 200Kg target with still two months remaining.