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The 7 t h CASM Annual Conference Ulaanbaatar, Mongolia

The 7 t h CASM Annual Conference Ulaanbaatar, Mongolia Government Initiatives in the Artisanal Mining Sector of Ethiopia By :- Tesfayenesh Lema Hundie Melka Tamrat Mojo September 7-12, 2007. Flow of the presentation Introduction Geology Mineral potential

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The 7 t h CASM Annual Conference Ulaanbaatar, Mongolia

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  1. The 7t h CASM Annual Conference Ulaanbaatar, Mongolia Government Initiatives in the Artisanal Mining Sector of Ethiopia By :- Tesfayenesh Lema Hundie Melka Tamrat Mojo September 7-12, 2007

  2. Flow of the presentation Introduction Geology Mineral potential Artisanal Mining in Ethiopia Programmes/ initiatives undertaken by the government Outcomes of the initiatives/programmes Problems Future Plan

  3. Introduction ETHIOPIA Location:- East Africa (latitude 3o N - 15oN & longitude 33oE - 48oE Surface Area :- 1.1 M km2 Population :- over 70 million Bordered with- Kenya, Djibouti, Somalia, Sudan and Eritrea Administration:- Federal System (9 regional states & 2 City Admin. ) Altitude:-4,620 m asl to <130 m bsl. Infrastructure: -highways & dry weather roads connect cities. -Ethio-Djibouti railway connects Addis Ababa with Djibouti -Ethiopian Airlines has wide international and domestic network (passenger & cargo services). Location map of Ethiopia

  4. -Ethiopian Telecomunication Corporation (ETC):- Data, internet, fixed and mobile telephone, Telegram and Fax services. Languges:- Official language is Amharic -more than 70 languages are spoken -English widely spoken Religion:-Christianity & Islam are main religions. Export:- major export agro- indutrial products (mainly coffee, oil seed, flower, leather etc.). Mining :- contributes <5% to the national economy -gold, tantalite, gemstones & dimension stones are the main minerals exported.

  5. Geology Ethiopia is underlain by Precambrian to recent geological formations -Precambrian covers about 25% of the country ( low grade volcano-sedimentary assemblage & assocaited plutonic rocks and high grade rocks) Paleozoic is poorly represented with the presumed ordovician glacial deposits in Northen Ethiopian & permo-triassic Karoo sediments at the base Ogaden basin in eastern part of the country -Mesozoic sed. Rocks (Jurassic sediments) cover 25% of the land mass of Ethiopia. - 50% is covered by Cenozoic volcanic and sediments (Tertiary to quaternary geology is related to the evolution of the East African Rift Valley). -Highland- Tertiary volcanics ( basalt ) -Rift valley- Tertiary & Quaternary volcanics &sediments. -Quaternary sediments –different parts of Ethiopia To date 40% of the surface area of Ethiopia has been covered by geological mapping at 1:250,000 scale

  6. Mineral Potential Ethiopia is Endowed with diverse mineral potential:- Primary & placer gold occurrences & deposits , columbo-tanatlite & Platinum deposits, base metals, molybedenite, & iron, phosphate, Kyanite, graphite & kaolin deposits and mineralization Manganese, salt (brine & rock salt), potash, diatomite, bentonite, sulfur,, soda ash. Coal & oil shale deposits High potential for geothermal resource (so far 50 Mwe potential determined) Potentil for oil & gas (4 TCF gas & gas condensate discovered in two field) Dimension stone (marble, limestone, granite etc.) Huge resource for the construction industry including cement raw materials

  7. Artisanal Mining in Ethiopia:- Recognized as means of a liveli-hood in the mining law 52/1993 Defined as non-mechanized mining operation of Au, Pt, precious minerals, metals, salt, clay & other minerals, Shouldn’t worked deeper than 15m vertically and should be carried out only by Ethiopian (Individual &/group) currently more than 500,000 people are engaged in AM activity Distribution:- in different parts of the country Gold, gemstones, salt are the main minerals worked by AM Basic characteristic of AM in Ethiopia -miners live in poor living condition -Rudimentary equipment & hazardous mining methods are employed.

  8. Women engaged in AM to supplement family incomeChild labour in AM PanningforGold

  9. AM Villages in Southern Ethiopia Open Market for Gold, W. Eth Land Degradation, AM in S. Eth. Packing Gypsum, AM in C.Eth.

  10. Living condition Water for Multi -use Unsafe working condition Pits dug for Opal- unrehabilitated

  11. Programmes/Initiatives being undertaken by the government Two major programmes:- Program 1- Study of AM related problems by international consultant Program 2- Project to formalize and assist Artisanal miners Program 1. consultancy study:- Objective – to identify problems & initiate improvement of production of AM -to change adverse environmental impacts resulting from AM operations Comprises of:- Field study on different parts of the country in AM sites Training to MoME, GSE and RSMB experts and other stakeholders ( MoE, MOH,NBE, FEPA )

  12. Programme 2- Project to formalize and assist Artisanal minersObjective:- To improve the livelihood of AM & enhance the contribution of the sector to the national economy Established taskforces & held various stakeholders consultation:- -National Bank of Ethiopia (NBE),-Commercial Bank of Ethiopia, -Federal & Regional Cooperatives Agencies, -Ministry of Revenue & Customs Authority -Ministry of Trade and Industry, -Regional Administrative &Police -Regional States Mines and Energy Bureaux-Federal & Regional Environment and Health sectors

  13. Result of the consultation forums MoME:- Give free movement permit for mineral commodity Assist RSMB (capacity building -manpower and material) Provision of technical & production equipment assistance to the miners Provision of laboratory service on quality of Gold (GSE Laboratory) Establish a unit responsible for AM in the Ministry Incorporate ASM in the mineral policy and revise the mining law and regulation in the favour of ASM Delineation of potential/auriferous areas Regular consultation & experience sharing with stakeholders RSMB & Cooperatives Agency:- Organize miners and gold traders into cooperatives and issue cooperative license Delineate license area & issue license to miners Facilitate access to microfinance for the miners NBE :- Regularly revise the directives MoTI:- Issue license to gold traders

  14. What has been done ? NBE has revised its directives: 20% retention & 1% service charges were lifted availability of safe custody without any charge for a month Purchase gold according to world market Others financial institutions authorized for purchase of gold Reduced its purchase limit of 5kg to 1kg and to 250 gm gold MoME:- Create awareness (miners, traders, admin. etc.) on:- establishment of cooperatives environment, Safety and health (HIV/AIDS) Women involvement & empowerment in cooperatives, child labour protection Saving & microfinance utilization

  15. Technical & material support Certification of Gold quality Delineated potential areas (GSE) Training & awareness creation to stakeholders Regional Bureaux :- Established cooperatives Issued cooperatives & mining licenses Delineated license areas Conduct regular follow up Regular report to the MoME on the status Conducted TOT on value addition for opal in collaboration with MoME MoTI:- Issued trade licenses

  16. Outcomes of the initiatives/progrmmes Programme 1. AM problems are identified & recommendations given on the way forward Capacity of experts built through a local training AM incorporated in the mineral policy and The mining law & regulation under revision (Documents at draft level) AM Unit is established in the MoME Programme 2. 28 and 27 AM Cooperatives established in 2005/2006 and 2006/2007 respectively

  17. Access to international market Gold exported through National Bank of Ethiopia by AM is 604, 740 and 1938 kg in 2004/2005, 2005/2006 and2006/2007 respectively Gemstones exported through NBE, 995 kg in the year 2005/2006

  18. PROBLEMS Lack of Capacity in human, equipment & financial resource at federal & Regional levels Lack of improved production equipments & technology Poor Access to potable water and water for mining activity, Education, telephone and energy Poor access road to AM sites Lack of health care facilities High prevalence of HIV/AIDs & Malaria Child labor in AM

  19. Future Plan To overcome the problems and bring sustainable development in the Am sector:- Formulate a project based on the recommendations given by the consultant Search for technical & financial support Experience sharing from best practice countries & AM sites locally Further strengthen the on going project (establish cooperatives, provide technical and material support, build up market access ) Support the use of value addition on gemstones

  20. Statue of Gold panner In Adola Gold Belt, Ethiopia THANK YOU

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