The Central Ethiopian Region is home to many types of mineral resources. Among these are minerals that are used for industrial and construction purposes. Work has been underway to develop industrial inputs such as coal, silica sand, limestone, kaolin, etc.
According to the Director General of the Central Ethiopian Region Mining and Energy Agency, Mekonnen Menedo, the region has been established for about a year and eight months. Since then, many activities have been carried out by establishing the Mining and Energy Agency to manage the mining sector.
The region is giving priority to studying and exploring the minerals in the region. The mineral exploration is being carried out scientifically, and its feasibility is being verified.
The work should have a framework that includes social and economic benefits; in this regard, activities are being carried out to create favorable conditions that will allow the region to identify its potential. For this purpose, the exploration of minerals in the region will be carried out in a coordinated and transparent manner with the Ministry of Mines and the regional structure that manages the sector, as well as other relevant bodies.
The Director General mentioned that during the previous regional period, there were many studies that were conducted at the regional level at a high cost, and now exploration work is being carried out focusing on minerals under the Central Ethiopian Regional State. He recalled that they have been working on the basic issues of what types of minerals exist, which have been proven through research, using the previous study as evidence.
Therefore, he mentioned that in order to develop the region's minerals, a team of experts from the region to the lower levels, organized by geologists, is being identified and there are works being implemented following this.
He recalled that studies have been conducted by universities and research institutions such as the Geological Survey of Ethiopia; the information are being collected and analyzed to identify and utilize the region's mineral resources. Studies are still being conducted by universities.
As to him, in addition to the fact that industrial input minerals such as coal, silica sand, limestone and kaolin have been confirmed in the region, it has also been confirmed that construction minerals are also widely available.
He also mentioned that the region's proximity to the central government, its geographical location and similar issues have made it an attractive region in many ways, and therefore, the region will mainly provide these resources for construction to Addis Ababa and surrounding areas.
Since the region has vast and potential resources, it is not possible to identify these resources at once; he indicated that the exploration work is being carried out regularly. A plan to develop and utilize the mining sector in the 2024/25 budget year has been prepared and put into operation.
He further explained; among the many activities planned to be carried out in the sector in this budget year, the first concern is licensing. Licensing work of the mining sector requires special attention and caution compared to other sectors.
Since the region is rich in mineral- resource, it also requires special management in a way that takes into account its potential and needs. The regional licensing administration work was reviewed by the Standing Committee on Mining of the House of People's Representatives and the Ministry of Mines and was taken as an experience for other countries.
According to the Director General, licenses are not issued just because there is a lot of interest in developing the mining sector in the region. Since mining is a public and government asset, the consequences are many unless a system is put in place to manage it differently from the usual practices. Mining is not only related to security and economy, it is also irreplaceable and should be managed appropriately. The region has done well in this regard.
For this reason, an institutional mechanism has been established to identify the license applicant who wants to engage in the sector. There are economic and social goals set by the country in the sector; for this reason, the work will be carried out carefully.
Mekonnen said that previously issued licenses will also be audited, and that the license applicant cannot be said to be entitled just because the license is audited. The license is subject to a time limit, and based on this, the activities being carried out and the support provided by the agency will also be reviewed.
Therefore, he said that a system has been established to evaluate all licenses in green, yellow and red, and that if the licenses evaluated in red do not meet the requirements, action will be taken against them, up to and including the cancellation of the license. He also explained that work will be done to build a system to quickly correct the deficiencies of licenses marked in yellow and to ensure that they are corrected.
The Director General stated that 10 licenses have been issued out of 14 exploration and production licenses planned for the first six months of the fiscal year. He also mentioned that 300 production licenses were planned for zones and special districts; 356 investors have been issued licenses.
On the other hand, measures are being taken against those who have obtained mining licenses in the region but have not implemented them. Four exploration and one production license contracts that did not operate in accordance with the institution's license management procedures within six months have been canceled and terminated. Two entities that had obtained production licenses were given warnings for not implementing them in accordance with the contracts; among those who were granted permits to mine ore in zones and special districts, 117 associations whose permits expired have also announced that their permits have been terminated.
Mekonnen also stated that the region has achieved high production in the first half of this budget year through the production of minerals used for industry and construction. According to him; in six months, it was planned to produce 2.5 million cubic meters of construction minerals; 2.3 million cubic meters were produced. It was planned to produce 24,167 tons of industrial minerals; 30,813 tons were produced above the plan.
In the region, it was planned to collect 41 million Birr in revenue from various fees (from new licenses and renewals, royalty payments, land rent, and other services) in the mining sector in six months; 60.6 million Birr was collected. This made the performance exceed the plan.
The Director General believes that the mining sector will create employment opportunities for many citizens. It has been able to create employment opportunities for 4,117 youth in the six months of the current fiscal year. These are mostly employed in zones and special districts under traditional and small-scale mining licenses.
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He also pointed out that there is a package called the redevelopment of mining areas, and this package will enable the redevelopment of areas damaged by mining and ensure that the environment is protected. It is planned to redevelop three square kilometers of land in six months; and redevelopment work has been carried out on an area covering 2.6 square kilometers.
Mekonnen further stated that among the main problems faced by the mining sector is lack of awareness about the sector, and that the understanding of the society at all levels, government bodies, and those working in the sector is not up to the mark. As a result, problems are encountered frequently. The sector is one of the five pillars identified as driving the country's economy, and it is a sector that has great promise in terms of its diversification. It is being taken as homework to understand and work with the relevant parties in this regard.
Enabling conditions are essential to identify mineral resources; sufficient research institutions are needed to work on capacity development, he said.
He also pointed out that there are still many issues that have not been addressed in terms of identifying mineral resources at the national level. "It is necessary to know and identify what we have well and organize it in a document. we need to put the studies conducted on the mineral resources that we have in our region into our hands in an organized and documented manner; we can attract domestic and foreign investors who can work and develop in the mining sector only when we increase our mining capacity and start using the research from the shelf," he underlined.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD THURSDAY 6 MARCH 2025
