Addis Ababa — The Ministry of Mines and Petroleum has canceled the licenses of 63 companies engaged in mining development and research in Ethiopia.
In his briefing today, Mines and Petroleum Minister, Takele Uma said the cancellation is due to weak performance and ineffective use of public and government resources.
Failure to renew license, below capacity production and not paying the royalty fee are also the reasons for the license revocation, he added.
According to the minister, out of the 63 companies, 38 were engaged in mining development while 25 were given licenses in mining research.
Minister Takele noted that the action will enable the nation to steadfastly develop mineral rich areas and properly utilize the country's wealth in the sector.
According to him, Ethiopia has now launched National Mining Cadastre Portal that indicates the potential of the mining industry to foreign and domestic investors who wish to engage in the sector in the country.
Some 302.9 million USD was gained from the sector in the last 5 months, of which 299.1 million was from gold and 3.8 million from other ornaments, it was indicated.
Mines export revenue is increasing as mechanisms are in place to control contraband in the country.