The stay on new mining licenses put into effect in Ethiopia last month is only temporary said Sinkenesh Ejigu Minister of Mines. Ethiopia had issued more than a 100 mining licenses before the suspension last month.

There were an estimated 200 applications for new licenses waiting to be processed when Ethiopia enacted the suspension to gain time to sort out issues with the mining sector.

The stay on mining licenses will be lifted in time said Sinkenesh although she did not give a specific date for when the suspension will be lifted.

The Ethiopian government has created a supportive environment for the private sector and expects this sector to take the lead in development efforts she explained.

The high numbers of potential investors applying for licensing is encouraging Sinkensh said. The Ministry however is tasked with administering companies in the sector as well as giving new licenses she noted.

The Ministry of mines will evaluate the performance of companies currently in possession of mining licenses in Ethiopia as well as examining the profiles presented by new applicants according to Sinkensh.

The Ministry of Mines anticipates that Ethiopia will earn an estimated 500 million US dollars from mining exports this fiscal year. The ministry aims to double this figure in the coming five years.

Several mining operation in Ethiopia have reached advanced exploration stages said Sinkensh. It is expected that further development work over the next two years will result in advanced levels of production in three years time she noted.

Source: Reuters