Ethiopia Midroc Gold Wants Additional Year on Sakaro Exploration
By Wudineh Zenebe
Fortune Staff Writer
Midroc Gold Mine Plc, which is one of the subsidiary companies under Midroc Ethiopia Technologies Group, has requested the Ministry of Mines and Energy to grant it an additional year to continue exploring gold in Sakaro, Guji Zone, Oromia Regional State, source disclosed.
According to these sources, the request was made two weeks ago to Alemayehu Tegenu, minister of Mines and Energy, who in turn forwarded the request to the Mining Operation Department for recommendations.
Midroc Gold is the only company involved in industrialized primary gold exploitation; it was established in the late 1990s by Sheik Mohammed Al-Amoudi, his wife Sofia Salah Al-Amoudi and the government of Ethiopia with an initial capital of 51.6 million dollars. The company was created a few years after National Mining Corporation (NMiC), another subsidiary company of Midroc Ethiopia, took a 20-year concession of Lege Dembi Gold Mine from the government in March 1998, for 172 million dollars.
This gold mine, located near Shakiso town, 250Km south of Addis Abeba, is believed to have 200tns of gold reserves; Midroc is mining gold for export from 8.7sq.km, although the concession agreement covers a total area of 88sq.km. The goldmine was transferred from NMiC to Midroc Gold, which has been managed by Arega Yirdaw (PhD) since 2001 and business has been good since last year, with Switzerland being the largest buyer of Ethiopia's gold, unmatched by United Arab Emirates and South Africa that followed it in 2005, according to data from the Ministry of Trade and Industry.
Ethiopia has exported close to 5,000Kg of gold last year, generating close to 64.7 million dollars. It was an inprovement in performance compared to 3,443Kg the previous year and 3,875Kg in 2003. With the world gold price reaching 20 dollars for a gram, Ethiopia had obtained close to 23 million dollars last year than three years earlier from the export of 5,000kg of gold.
With such positive prospect, Midroc Gold has been exploring gold around Sakaro, an area known to have a reserve as good as that of Lege Dembi, according to experts at the Ministry of Mines and Energy. It obtained a two-year exploration right on 440sq.km in 2003 and renewed the agreement for an additional year last year. According to reliable sources, this agreement is due to expire in December 2006.
The reserve in Sakaro was first discovered in 1975, by gold prospectors who mined in the Sakaro Valley, according to experts. Although Ethiopia's total reserve of gold is yet to be identified, Sakaro is one area among other parts of Ethiopia where gold is believed to be located, including in Benshangul, Oromia, Tigray, and Gambella regional states.
Sakaro was subsequently visited by two Russian experts; A. Kozarevitha and Makvin. The reserve was confirmed after a geological survey was submitted in the second half of 1979, when visible gold was found northeast of the Sakaro area, an expert told Fortune.
According to sources in the Ministry, the reports they receive from Midroc Gold has been very promising with the possibility of beginning mining in 2007. Managers of Midroc Gold have declined to confirm the report, however.
Government regulations require mining companies to return one fourth of the originally agreed area when it is granted an extension. Should it start mining before the exploration period comes to an end, the company is subjected to pay five per cent royalties fee to the federal government.
There are three cooperatives involved in mining an average of three tones of gold through a traditional manner, while NMiC, Cartak Ethiopia, ROMSO and ESSO Engineering have been granted exploration permits by the Ministry.
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Permalink19 comments
...if it was not for Meles and his Gov'ts freedom, he would not have created more than 150,000 jobs for the people of Ethiopia...and this is just Al Amoudi...imagin all the other investers that Meles invited to his country so his Ethiopian people could have jobs.What a great Leader...If people only Knew.There is nothing secret about the web of thiefs looting the resources of regions to benefit both Al-Amudi and his Woyane chiefs along with some rifrafs of Oromia region. Listen to the interview of Dr. Getachew Jigi in refernce to what is going on with the gold mining industry and you will learn a lot. It is a matter of time till we can get back to normal prospecting and mining industry. The TPLF established the looting industry for their benefit and nothing else.
Things are improving in every part of Ethiopia and thank you for all the hard workers!
Be egzihabhere yezehalehu Kena neger keafeh yewta. This man has done to his country what we all haven't done summed up.
Sheku is a great man. Evacation of people is a must to build some thing in that area. Why you fail to see the other face of the coin?
There is no argument about his nationality. He is woleye by his mother. He is a saudi citizen by passport, like most of us are as well.
Lets count on the marvelous things the guy has been doing.
I'm sick!
You are one of the Derg's member who looted the country for 18years. If you didn't save the money you stole, you are cooked because you will never see your Kinijit or Derg come to power at least in your grand child life time. Quit it and serve your master EPRDF. Don't be a behind PC heroe. Kisenam.
This poor country is losing its some natural resources by those woyanes and Al moudi. Unblievable how this rich guy is taking the glod resources.
No body will blieve that the live standard of ethiopians is now better.
It is worse than the Dergu time.
Woyane felt to lead this big country it is time to go or they will be removed in one night by our hero pure ethiopian who are still with melese and original are tigrias.
In ethiopia every thing can change within one day.
Woyane, when do you thing you have enough money?
Also his best friend Meles' end is coming.
Al-Amoudi i think it is better for you to live you sucked enough of Ethiopians blood. We don't need you. You are not even Ethiopian. Sucker.
Peace!!!!!!!!
His excellency Shek Mohammed allamoudin,is the most fair,well to do invester to Ethiopia and a father of many Ethiopians by creating many job opportunities including your poor families.If you think you are good for the Oromos the try to fight Sturbucks who is looting the black-gold from their backyard,but you don't deserve that quality and shame fully you know how to open your wide mouth and rear-end that is always stingy.
You are always zerro but now below it ,negative, If you don't know it is good to be keepquiet.2ZEM BALE AF ZIMB AYGEBAM "
If you are still sympathiser of the great Oromo people it is good to stand with them for the claim of their right agaist Tsarbucks looting their Black-gold.
His excellency Shek Alamoudin is probably the only Ethiopian who is discharging his responsibility as a rich Ethiopian invester,the only offense by you and your CUDP leaders is becouse he failed to respond to your CUDP money request.
Despite that he is the father of many Ethiopians in creating many job opportunities including your poor families in Ethiopia.
Despite your compaign to use his products in Ethiopia which your contribution to effect is very insignificant,his investment is growing up all over the country.
I found him the only Ethiopian diaspora who did his best to share his wealth with his Ethiopians for whatever he earn abroad,hope you nonsense diaspora learn many lessons from him.
i dont know what u guys tell to your self that one thing u did 4 your cantry. u toke to much about ethiopianism but doing nothing 4 the cantry.owe sorry 2 4get (u been on the street of dc every day asking 4 americans to not give aid for the poor of ethiopian).
if u guys have a mind to think(that i dont belive u have) think and ask your self what did i do to my cantry that i toke to much every day sitting on my pc.
fesam ,feri and borcham hodam hula
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