Foreign investment flocks to Ethiopia’s petroleum, mining sectors

August 9, 2007 (ADDIS ABABA) — Foreign investment from all corners of the world as well as joint ventures with local companies is flourishing in Ethiopia’s petroleum and mining sectors, said a cabinet minister Thursday.

To date, some 66 mineral operational licenses have been issued by the Ministry of Mines and Energy and two of the licenses are prospecting, while the remaining 38 and 26 were exploration and mining licenses, respectively, said Alemayehu Tegenu, minister of mines and energy.

The licenses were granted to 42 private companies engaged in large-scale mining operations, 14 of which are foreign, 21 are joint ventures, and seven local, Alemayehu said at a symposium on the petroleum and mining sectors.

Petroleum exploration is currently underway in the regions of Gambella, Ogaden, Southern Rift and Abay Basins, he said.

Malaysia’s Petronas and Holland’s Pexco are foreign transnationals currently involved in Ethiopia’s petroleum exploration and development, he said.

Alemayehu said his ministry is making all efforts to attract more foreign investors in the petroleum and mining sectors during the new Ethiopian millennium.

Since basic geosciences data and information are very crucial in attracting foreign investment in petroleum and mining sectors, some 40 percent of the country has been covered by geological mapping and a multidisciplinary data on mineral exploration, hydrology geophysics is available as well, he said.

Though Ethiopia’s minerals and oil industry has reported the existence of a wide range of minerals and petroleum throughout the country, the government had authorized little exploration. Thus, there are no reliable estimates of the extent of mineral and petroleum resources.

(Xinhua)