Tag Archives: mining license

Ethiopia’s Mining Sector “Corruption Central”

The Ethiopian government who said it has no independent way of verifying mining revenues last year reports the earning of over USD 400 million from gold supplied by mainly artisanal miners.
The Ethiopian government who said it has no independent way of verifying mining revenues last year reports the earning of over USD 400 million from gold supplied by mainly artisanal miners. Other than that, no one really knows the depth and breadth of corruption taking place in the sale of mineral licenses and siphoning of mining revenues.

By Alemayehu G. Mariam,

The mining sector in Ethiopia is a hotbed of corruption and hub for graft and fraud. The World Bank (WB) in its 2012 massive report “Diagnosing Corruption in Ethiopia” identified the mining sector as one of the most corrupt sectors of Ethiopia’s economy.

According the WB, there are “seven areas of corruption risk” in the Ethiopian mining sector” including the “three main risk areas” of “license issuing, compliance with license conditions, and mining revenues”. The other critical areas of corruption include fraudulent practices in “compensations and obligations to local inhabitants, contracts with contractors and suppliers to the mining companies, falsification by mining companies of product quality, and theft of mining products and equipment.”  Continue reading Ethiopia’s Mining Sector “Corruption Central”

Eritrea to Buy 30% Interest of Sunridge’s Asmara Project

The Asmara Project that consists of four mineral deposits (Emba Derho, Debarwa, Adi Nefas and Gupo) will be the largest mine in Eritrea

Sunridge Gold, the next Nevsun, will soon reach to its final stage – production

By Sunridge Gold,

Sunridge Gold Corp. (the “Company” or “Sunridge”) (SGC:TSX.V/SGCNF:OTCQX) is pleased to announce that the Eritrean government through the Eritrean National Mining Corporation (“ENAMCO“) has informed the Company that ENAMCO intends to acquire a 30% paid participating interest in the Company’s Asmara Project in Eritrea.  Continue reading Eritrea to Buy 30% Interest of Sunridge’s Asmara Project

Eritrea: Mining law and the Licensing procedure

Mining Journal

Mining Journal

The legal framework governing the conduct of all mining and related operations within the territory of Eritrea is embodied in the mining law, which comprises the Minerals Proclamation (No68/1995), the Mining Income Tax Proclamation (No69/1995) and Regulations on Mining Operations (Legal Notice No19/1995), all of which were promulgated in March 1995.

The mining law was prepared to satisfy the key policy which is that all mineral resources in Eritrea are public property, and hence the State has a duty to ensure the conservation and sustainable development of these resources for the benefit of the people. It also provides a favourable environment for foreign direct investment into the mining sector.

Due recognition is made of the significant role that foreign investment and skills can play in the development of this sector, and of the capital intensive, long-term, and risky nature of mining investments. The law also recognises the importance of regulations to ensure the proper protection of the natural environment, and strongly urges operators to comply with sound principles of resource management and land use.                          Continue reading Eritrea: Mining law and the Licensing procedure