Another gold and base metal explorer company has inked a deal with the Ministry of Mines, Petroleum and Natural Gas.
The joint Ethio-Czech company, Moravia Mining PLC, has signed an agreement with the Ministry of Mines, Petroleum and Natural Gas on September 1 to explore gold and associated base metals in the southern part of the country.
In Ethiopia base metal and gold mining is dominated by foreign investors
According to a statement Capital obtained from the company the Exploration License will be valid for three years and can be renewed for an additional two years subject to completion of the agreed work program.
The license area is located in the gold and base metal rich land at Odo-Shakiso Woreda of Guji zone, Oromia region and covers a total area of 92 square kilometers.
Geologically, the exploration area is situated in the Adola greenstone belt that hosts the only two operating gold mines, Legadembi and Sakaro, operated by Midroc Gold Mines.
According to Dawit Shibru, co-owner of Moravia Mining PLC, the company signed the agreement after winning a bid for the exploration license area as per the criteria stipulated in the ministry’s directive.
Tewodros Gebregziabher, state minister of the Ministry of Mines, Petroleum and Natural Gas, and Dawit signed the deal at an event held at the ministry’s headquarters on Thursday September 1st.
The investment is the first of its kind for the Czech partner Moravia Steel Groups which holds a majority stake in Moravia Mining PLC.
Moravia Steel Groups is a Czech Republic based mining and metallurgical company that supplies its product to more than 60 countries.
It has been involved in various huge project manufacturing investments in Europe and other industrialized nations.
It has been one of the leading steel producing companies for the last 60 years in Europe and all over the world, since its formation over a century ago. Its top selling product is wire rod. It also is a top supplier of rail road accessories. The company plans to expand its footprint in the exploration and mining sector so it is looking into other projects in the country.
Dawit told Capital that the JV is also looking to invest in other mining projects.
In Ethiopia base metal and gold mining is dominated by foreign investors who mainly come from the western world.