The new MiningProclamation from August2010Private investment in the mineral sector

of Ethiopia was opened in 1991 as a

result of the political change in the coun-

try. A new market-oriented economic pol-

icy was provided by new mining procla-

mations and regulations to encourage

the participation of private capital in

mineral prospecting, exploration and

development activities.

The modern and globalapproach to sustainablemining developmentAs a result of more than fifteen years of

experience with licensing and adminis-

tration of the private mineral sector, the

mining law has now been revised and the

new Mining proclamation No. 678/2010

came into effect on 4 August 2010. This

new legal foundation supports the mod-

ern and global approach of the utilisation

and administration of the natural resources

for sustainable mining development.

The new Mining Proclamation No.

678/2010 provides:

• Non-exclusive reconnaissance licence

rights (for a maximum period of 18

months)

• Initial three-year exclusive exploration

licences to be renewed each year

• Mining licences for 10–20 years for

small-scale and large-scale mining

with unlimited renewals of 5 or 10-

year periods

• Guarantee for the licensee to sell the

minerals locally or abroad

• Favourable financial packages, e.g. tax

exemptions on equipment, foreign

currency accounts, loss carry forward

for 10 years

• Settlement of disputes through nego-

tiations and international arbitration

Active Mining Licenses100 km

Dry Road

Main Road

Regions

Exploration License

Large Scale Mining

Small Scale Mining

Mining License Application

Dry Road

Main Road

Regions

Exploration License

Large Scale Mining

Small Scale Mining

100 km

MINE

RAL R

ESOU

RCES

OF

Mining Proclamation

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The new Mining Proclamation requires:

• Plans for health and safety as well as envi-

ronmental protection

• Social impact assessment and community

development programme

• Royalties of only 3% on construction

materials and 8% on precious stones and

minerals.

MINE

RAL R

ESOU

RCES

OF

Ministry of Mines of Ethiopia

Dear Investors,

We take this opportunity to welcome you

to Ethiopia.

We promise to make every possible effort

to provide you with all required informa-

tion on the mineral sector in Ethiopia.

If you require information on the mining

law, licensing conditions and the invest-

ment climate in Ethiopia, please contact

the Mineral Licensing and Administration

Department:

Ministry of Mines

Mineral Licensing and Administration

Department

P.O. Box 486

Addis Ababa, Ethiopia

Tel. +251 11 6461214

Fax +251 11 6463454

Email: information@mome.gov.et

www.mome.gov.et

If you require information on the geology

and mineral opportunities in Ethiopia,

please contact the Geological Survey of

Ethiopia (GSE):

Geological Survey of Ethiopia

P.O. Box 2303

Addis Ababa, Ethiopia

Tel. +251 6 463325

Fax +251 6 463326

Email: Survey@ethionet.et

www.geology.gov.et

We are looking forward to your mining

investment in Ethiopia.

Prepared with assistance from GEUS.

December 2010

Core shack at Tulu-Kapi.

Villagers going about their daily business while gold is

being mined at the open pit goldmine in the background.

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