Ethiopian firm discovers 70,000 kg of gold
February 7, 2008 (ADDIS ABABA) — A private company owning Ethiopia’s only operating gold mine said on Thursday it found 70,000 kg of potential gold reserves in the south.
“MIDROC Gold Mining Company, which owns Legedembi Gold Mine, plans to realise the extraction of 70,288 kg of gold within the coming 13 years from three major areas identified with potential reserves,” Arega Yirdaw, general manager of the company, told local media.
“The company is now engaged in exploration activities in three areas with identified gold potentials,” he said.
On Wednesday, gold futures in New York hit record highs of $942.40 an ounce after official market hours, reacting to the half-percentage-point cut in rates by the Federal Reserve. Gold had ended official trade at $926.30 an ounce, down $4.50.
The company acquired Legedembi Gold Mine — located in Ethiopia’s gold belt 500 km south of Addis Ababa — from the government in 1997 with an acquisition price of $172 million.
Government officials say the country has identified more than 500 tonnes of potential gold reserves. Ethiopia generates annually some $100 million from gold exports, according to Ministry of Trade and Industry.
(Reuters)