The House of People’s Representatives (HPR) recently approved a draft proclamation regulating the country’s mining sector and transactions empowering states with the right to grant and regulate mining and competency licenses.
The previous proclamation merely legislated on mining transactions which are produced or processed only through traditional artisans, while it does not regulate the transaction of many types of minerals which includes industrial mineral, construction minerals, industrial semi-precious minerals and metallic minerals.
Unlike the previous one, the new proclamation will govern all transactions of minerals produced from all mining operations conducted within Ethiopia. Furthermore, the new law designated new duties and responsibilities for regional states in regulating the sector in addition to the Ministry of Mines and Petroleum.
As one of its main objectives, the new bill has introduced new provisions that requires license holders to ensure their mineral transaction scheme considers environmental and social protection principles in a sustainable manner. This provision is also accompanied with regorous penalty for failure to ensure environmental safety protections and social issues.
Michael Mengesha Public Relation Director at Ministry of Mines and Petroleum says, the ministry is carrying out many activities after Prime Minister Dr. Abiy Ahmed says the mining sector needs attention because of the underperformance of the sector over the past four or five years.
Even though Ethiopia has abundant natural resources especially, the mining sector which is a key sector for earning foreign currency, the country is not fully utilizing its potential due to different reasons and Prime Minister Dr. Abiy Ahmed’s commitment that targets enhancing the efficiency of the mining sector is a good start to solve the nation’s foreign exchange shortage, Michael noted.
Due to underperformance of the sector and low foreign currency earning the ministry is carrying out different activities to upgrade the sector. From among the activity that is planned to be taken by the ministry, revising the previous proclamations and also adopting new policy regarding mining and petroleum.
On the other hand the main problems for the underperformance of the sector are illegal individuals and organizations which participated in the sector are the main threats for
the performance of the sectors. The Ministry is working to identify those illegal traders and exporters.
Michael said that, previously there is no limitation both for the individuals and organizations they can extract any kind of minerals and sold it for illegal traders but now in order to narrow the gap protect illegal trade of mining between the producers and exporters situations were facilitated to make traders specialize only in specific resources.
Michael pointed out that, building mining marketing center across the country in which minerals were found will avoid illegal trade of mining. The performance has been largely remained unsatisfactory due to contraband trade and illegal smuggling. Previously trade took place in different areas like that of hotels by illegal smugglers and brokers and the establishment of these marketing center will curb the problem.
Recently opal manufacturing center established in Amhara region Delanta woreda, south Wollo. Construction of such kinds of marketing center is important to get rid of illegal smugglers from the activity.
This year only around 56 organizations were asked for production and research license and 15 of them were already started their jobs. The remaining companies would also start their jobs after fulfill the needed criteria he noted.
In addition construction of such kinds of marketing center in the vicinity of the resource rich areas will further benefit the society engaged in mining activity and they directly supplied the resources for the investors or to the market and this will indirectly avoid illegal smuggling of the resources.
Most of the time illegal traders were held by traditional artisans rather than the organizations engaged in export because they use for their daily consumptions and the only choice that they have is selling the product for illegal smugglers.
The six Ethiopian regions have mineral resources and in each region these marketing center will be constructed based on their potentials that means one region may have two or more marketing centers it will depend on the potentials of the region.
The Ministry of Mines and Petroleum has drafted a national mining policy that would aim at bolstering the local mining industry. The ministry recently held consultative meetings with stakeholders on the draft mining policy. The Ministry believes that the national mining policy would enable it to boost the mining sector’s contribution for the overall economic development of the country.
The Ethiopian Herald June 1/2019
BY HAILE DEMEKE
