Ethiopia in talks with Russian, Chinese and UAE petroleum production companies: Minister
Addis Ababa, January 12, 2023 (FBC) – Ethiopian Ministry of Mines announced that the government is holding consultations with petroleum production companies from Russia, China and the United Arab Emirates over potential partnerships on extracting the country’s gas resources.
Minister of Mines and Petroleum, Takele Uma, in his briefing to the media on the Ministry’s 6-month performance review, disclosed on Thursday that 1,910.5 kilograms of gold was produced in the last 6 months of the current financial year.
During the briefing, he said most of the gold mining in Ethiopia is being carried out by companies engaged in the sector. However, gold product provided by artisanal gold miners has shown a significant decrease.
The Minister’s report indicates that contraband trade is a challenge that hinders the increase of marketable gold mining, especially the illegal trading of artisanal gold produces.
According to Takele, a task force is being formed with members from different regions, the Ethiopian Customs Commission, the federal police, the peace and security bodies and the police prosecutor to preclude the illegal artisanal gold mining.
In addition, an investigation is being conducted on the financial transaction and various issues of gold dealers in the regions where gold is produced.
To prevent illegal trade and operation of the mining sector, new mining directive will be prepared and approved soon, the Minister added.
It is also stated that the demand for mining investment is booming.
The Minister added that the Ethiopian Government has been consulting with renowned petroleum companies ever since Ethiopia received the first gas reserves certificate stating the presence of seven trillion cubic feet (TCF) in the Ogaden Basin, located in Somali regional state.
The American company Netherland, Sewell & Associates, Inc (NSAI), a petroleum property analysis and consulting firm with offices in Dallas and Houston,Texas, conducted the study and provided the gas reserves certificate.
25 investment licenses were issued, of which 22 were exploration licenses and three were mineral production licenses
The report indicated that petroleum production companies of Russia, China and the United Arab Emirates are currently in talks with the Ethiopian government.
In addition to petroleum, it is said that companies from different countries are in preparations to invest in Ethiopia’s potash resources.
Regarding iron production, the report stated that five clusters with resources have been identified and drilling works are underway in different places.
By: Yonathan Yoseph