Mineral Licensing and Administration

About the Process

 

Mineral Licensing and Administration Core Process (MLAP)


The Mines Operations Department (now transformed from business process concept into Mineral Licensing & Administration Core Process) was established in 1970 to regulate the mineral operations of the Licensees. Mining has long history in Ethiopia dating back to biblical times. Mineral such as iron, salt and gold have been mined since ancient times in traditional ways. Mineral exploration began at the end of 19th century and the beginning of 20th century when European companies were granted concession areas for exploration and min

The Goal MLAP

 

Ensure the development of mineral resource potential of the country by attracting private investment in the sector. To encourage and facilitate for both private sector and government institutions to undertake high quality minerals exploration and timely use of minerals by furnishing mines development in order to bring about a meaningful and sizable impact to the economic growth of Ethiopia through efficient license administration and effective mineral resource promotion.

 

Organizational structure

 

Structure

Man Power

Process Owner

2

Mineral Licensing Sub Process

19

Mineral License and Administration Sub Process

12

Total

33

 

  1. Mineral Licensing Sub Process

 

Issues mineral operation licenses namely reconnaissance, exploration and small & large scale mining to investors that fulfil the requirements in accordance with mining laws. Prepare promotional materials in the mineral potential of Ethiopia and conduct promotional activities to introduce the mineral potential of Ethiopia. Issues Discovery Certificate for various minerals and Proficiency Certificate to professionals who qualify to give consultancy services.

 

  1. Mineral License and Administration Sub Process

 

This sub process follows up and administers reconnaissance, exploration and small & large scale mining licenses which are issued by the Ministry. It also facilitates mineral samples exports, verifies and provides supporting letters for custom duties and taxes free request, collects royalties and different revenues from the mining licensees in accordance with the Mining laws.

 

Licensing Authority

 

Mineral operation licenses are issued by the Federal Ministry of Mines and the Mines Bureaus of National Regional States with clear division of power between the two licensing authorities. The Mines Bureaus of National Regional States issue artisanal mining licenses, reconnaissance, exploration and retention licenses with respect to construction and industrial minerals, small scale mining licenses for industrial minerals, large scale mining licenses for construction minerals and certificate of discovery for minerals other than strategic minerals. The Ministry of Mines issues licenses reconnaissance, exploration, retention and mining licenses other than those to be issued by a state licensing authority and certificate of professional competence for professionals who wish to engage in consultancy services in the mining sector. The Mineral Licensing and Administration Core Process is the focal point and responsible organ at the Ministry of Mines to receive and process all applications falling within the jurisdiction of the Ministry.

 

Data on Mineralization

 

Although traditional mining has a long history in the country, systematic and modern mineral exploration started in late 1960’s. Surveys were mostly carried out in the Precambrian terrain of the country both by the Government and the private sector. This resulted in the discovery of various mineral deposits and occurrences in different parts of the country. Some of these such as the Lega Dembi Gold Mine, Kenticha Tantalo-columbite, Lake Abijata Soda Ash, Bombawoha kaolin, and dimension stones in various areas have been developed into operating mines.

 

Over the past 25 years, the Ethiopian Institute of Geological  Surveys has carried out exploration for metallic and industrial minerals.  The results of these studies are available to investors. 51% of the surface area of Ethiopia has been geologically mapped, of which 50% has been geochemically surveyed at 1:250,000 scale. Regional gravity coverage is 80% of the total area of the  country at a scale of 1:500,000. The airborne geophysical surveys conducted for mineral, petroleum and geothermal exploration purposes. Some of the more important deposits are:  the Adola placer gold (3.8 tons), the Lege Dembi primary gold (62 tons), the Kenticha columbotantalite (25,000 tons), the Bwambwawiha kaolin (500,000 tons), the Kenticha feldspar (300,000 tons), the Kenticha quartz (300,000 tons), the Yubdo platinum (12.5 tons), the Bikilal phosphate (4,000,000 tons P2O5), the Dallol potash (160,000,000 tons), the Gewane Mille bentonite (70,000,000 tons), the Lakes Region diatomite (40,000,000 tons), the Lakes Region soda ash (400,000,000 tons) the Daleti marble (50,000,000 tons) and the Adola nickel (17000,000 tons)

 

Mining Activities

 

Lega dembi gold mine is the only modern primary gold mine existing in the country. This medium to large scale mine produces 4000 kg of gold per year using CIP processing plant. Other mining activities include the production tantalite (250 ton per year) and soda ash 20,000 tons per year), on pilot scale production. Mining of kaolin, dimension stone (limestone, marble, and granite), cement row materials (limestone, gypsum, clay, silica sand & pumice), salt and artisanal mining of precious metals, gemstone, industrial minerals and construction materials are the main mining activities in Ethiopia.

 

Exploration Status in Ethiopia

 

•         Foreign companies (FDI)  such as Nyota Minerals Limited, ASCOM, NMic, Midrock Gold plc, Sheba Exploration Ltd. and Aberdeen INC and others   are in advanced stage of Exploration and drilling for gold and associated metals. In fact Nayota in the process of acquiring a large scale mining license for gold and associated minerals.

 

•         One foreign (Canaco Ethiopia (Barbados) Inc.) joint Venture with Local company is doing advanced exploration and development of Gold and base metals.

 

•         Some other foreign companies are in exploration of tantalum-Niobium.

 

•         A number of other companies are on follow up and detailed gold and other minerals Exploration stage.

 

•         Some Companies (like BHP Biliton, G&B Central Africa Resources, Saink Potash Mining, Canadian companies, etc…) are on development and mining stage of various industrial minerals like potash, cement raw materials and others.