Transaction of Minerals: the Regulation in Ethiopia
By Mahlet Mesganaw, Partner at DMLF
![](https://dmethiolawyers.com/wp-content/uploads/2024/03/image.png)
The Transaction of Minerals Ratification Proclamation No. 1144/2019 governs the transaction of minerals resources after production. The Proclamation covers all transactions of minerals produced from all mining operations conducted in Ethiopia. The FDRE Constitution provide that the rights to ownership of all natural resources of Ethiopia is exclusively vested in the government and its people. Accordingly it has become necessary to regulate the transaction of minerals by a proclamation. We shall briefly look into the competency requirements, licenses required, eligibility, duration of licenses and a brief conclusion shall follow.
Authority and Ministry
The licence issuing Authority and the Ministry mentioned in the Proclamation are the Ministry of Trade and Regional Integration and the Ministry of Mines, respectively. These Federal organs issue mineral refining, smelting for metallic and associated minerals and mineral exporters certificate of competence. Licences and certificates other than the once given to the authority or Ministry are given by the Regions.
Certificate of Competence
To transact minerals, a person has to qualify to carry out the trade. The following certificates of competence (coc) may be requested and upon fulfillment of the requirements, issued : a) mineral supplier coc, b) mineral crafting coc, c) mineral refining coc, d) mineral smelting coc, d) mineral transaction coc and f) mineral export coc.
Licenses
Any person who wishes to trade in minerals shall present a coc and shall be issued with the following License : a) mineral supplier licenses b) mineral crafting license c) mineral refining license d) mineral smelting license d) mineral trade license and e) mineral export license.
Eligibility
Among the Licenses referred above, mineral supplier license or gold and silver smelting license shall not be issued to foreign investors. A holder of a mining license shall not be issued with a supplier licence. Similarly regarding eligibility for coc, mineral transaction or export certificate of competence shall not be issued to foreign investors.
Duration and Renewal
Any license or coc shall be valid for one year from the date of issuance subject to renewal upon fulfillment of the requirements.
In conclusion, the Transaction of Minerals Proclamation aims to modernize the mineral transaction scheme so as to create proper structure that enhances the contribution of the mining sector to the economy of Ethiopia. The Proclamation also enables investors engaged in mineral transactions perform their rights and obligations as per the rules and regulations.
For any Mining related inquiries, you may contact us at info@dmethiolawyers.com
-
Foreign Experts and Consulting Firms:Certificate of Competency
By Mahlet Mesganaw, Partner at DMLF The Ethiopian Environmental Protection Authority, with its power generated from Article 20 of the Environmental Impact Assessment Proclamation No 299/2002, issued a Directive on Issuance of Competency for Consulting Services in Environmental and Social Impact Assessment Number 1005/2024 (hereafter the Directive). The Directive is done in June 2024 and…
-
Certificate on Mediation
Congratulations for Mahlet Mesganaw, Partner at DMLF, for her achievement of Certificate on Mediation for Trainers from VU Amsterdam.
-
Few Points on Ethiopian National ID
By Dagnachew Tesfaye, Managing Partner at DMLF The Ethiopian Digital Identification Proclamation No.1284/2023 done on 18th day of April 2023, governs the national id issuance and regulation. This brief article will cover a few points on the purpose of the Proclamation, eligible parties, what information is collected, unique number and digital identification credential, authentication and…
-
Business Visa Application
By DMLF Immigration and Citizenship Services (ICS) requires the following documents when applying for a Business Visa: For any related inquiries, you may contact us at info@dmethiolawyers.com
-
RESPONDING TO CHILD ABUSE AND NEGLECT
By Dagnachew Tesfaye, Partner at DMLF The Alternative Child Care and Support Directive Number 976/2023 by Ministry of Women and Social Affairs, October 2023, incorporates a section namely Responding to Child Abuse and Neglect. The State is given the responsibility to respond to child abuse and neglect. The procedure of reporting, assessment, court approval, emergency…
-
Gold Purchase Price Adjustment
By DMLF The National Bank of Ethiopia has introduced an amendment Directive namely NBE Amendment Procedure on Price of Gold Purchase No 1/2024, effective as of June 17/2024. This Directive is an amendment to a similar Directive number 3/2023. The amendment Directive encompasses price adjustment for provision of gold in terms of its weight and…