New mines of gold discovered in Ethiopia

October 23, 2009 (ADDIS ABABA) – Ethiopia announced on Friday that new mines of gold have been discovered by British and Saudi companies saying it could yield some 41 tonnes.

Ethiopia says untapped gold reserve could reach 500 tonnes in different parts of the country. Mining regulations give foreign investors incentives such as duty free imports of equipment and repatriation of profits in 1993.

The Golden Prospecting Mining Co., a British firm, has found a deposit of about 23 tonnes in western Ethiopia said Gebre Egziabher Mekonen who is head of the Mineral Operation Department in the Ministry of Mines and Energy.

“Discoveries by the British firm indicated that there is a viable prospect for gold mine development in the area. But it takes up to $200 million further investment to exploit the resources roughly within the next five to 10 years,” he told Reuters said.
Further the Saudi Sakaro mining company, owned by tycoon Sheik Mohammed Hussein Al Amoudi, has also discovered a new deposit estimated at 18 tonnes in the Lege-Dembi gold belt.

The Golden Prospecting Mining discovery is at Tulu-Kapi, about 450 km (279.6 miles) west of the capital Addis Ababa and near the border with Sudan..

The Saudi company is also exploring another site near Tulu-Kapi, which has indications of a separate reserve of 30 tonnes.

With the new gold deposits, Ethiopia’s annual income from the sector could reach up to $1.7 billion a year at current prices, from the present $105 million a year.

Ethiopia has earned $450.5 million from nearly 48 tonnes of gold exports in the last 10 years, according to statistics by the National Bank of Ethiopia.

44 international and local companies were engaged in mineral exploration throughout the country.

(ST)