Artisan miners have sold 2,064Kg of gold worth 109.5 million dollars to the Central Bank while companies engaged in gold production exported only 588.3Kg worth 35.4 million dollars in the first quarter of the fiscal year. The gold purchased from artisan miners is 52pc more than the 1,357Kg the National Bank of Ethiopia (NBE) had planned to collect in the first quarter. This is not the first time performance of artisan miners has been more than the expectation of the Central Bank. Although the government had planned to increase the gold purchased from artisan miners to 5,250Kg of gold at the end of the five year economic plan, it was surpassed in the first year of the plan. Artisans had sold 6,615Kg of gold to the NBE in the 2010/11 fiscal year. The Ministry of Mines (MoM) has plans to collect 13,200Kg from 1,759 artisans organized in 53 associations at the end of this fiscal year. Aside from gold, artisans have also produced 4,607Kg of gem stones worth 1.7 million dollars, exceeding the plan for the quarter by 10pc. Artisans also produced 350g of platinum and 66.3tn of tantalum. The increase in the production of gold from artisan miners is due to the increase in the international market and the NBE’s offer of five per cent more than the price, according to Tamrat Mojo, head of traditional mines, manufacturing & transactions department at the MoM. This offer, that is more than the international market from the Central Bank, started two years ago to encourage artisan miners to sell to it directly instead of on the black market. As of October 3, 2011, the NBE, Geological survey and the MoM signed an agreement to decentralize the sale of gold in the regional state to encourage artisans by minimizing the costs of transportation. The NBE has delegated the Commercial Bank of Ethiopia (CBE) to conduct the purchases in its branches located in the top gold producing regions. These include Jimma, 346Km from the capital in Oromia Regional State; Hawassa, 276Km from the capital in Southern Regional State; Asosa, 675Km from Benishangul-Gumuz Regional State: and Mekelle, 780Km from the capital in Tigray Regional State. Oromia, Tigray and Benishangul Regional States are the top three regions where gold is produced, with an output of 646.2, 557.6 and 373.9 kilograms in the first quarter, respectively. A geological survey unit comprised of auditors and laboratory experts, who will check the weight and quality of gold as well as issue certification, have been established at each branch. In each transaction, the branches of the banks affect 90pc of the payment within 24 hours, and the remaining will be paid within a month’s time when the artisans make requests, according to the agreement. This is done to further encourage artisans to sell to the banks, who will be paid at the international price of gold at the time of their request within the month if it is greater than what was paid for the 90pc. If, however, the price has decreased from what they were paid for an ounce, they are paid in the original price. Although the performance from artisan miners has exceeded the targets put by the Ministry, the performance of those involved in the export of gold directly has been below target. The Ministry had targeted on exports to reach 1,225Kg this quarter but had come in under by 48pc. MIDROC Gold Mine plc, which is one of the subsidiary companies under MIDROC Ethiopia, owned by Mohammed Al-Amoudi, is the sole gold exporter. It had acquired Legedenbi, which has a yearly average production of around 4,500Kg of gold and silver, with the average composition of 78pc for gold and 21pc for silver. Despite the Ministry’s expectation, the gold company says it has achieved its target for the quarter. Midroc Gold is the single largest contributor to the Ministry in terms of royalties paying 100.1 million Br in the last fiscal year out of the 104.4 million Br the 26 companies engaged in the production of different precious minerals. | 
An increase in the international market leads to an increase in the production of gold by artisans
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