By Mahlet Mesganaw, Partner at DMLF
The Transaction of Minerals Ratification Proclamation No1144/2019 governs the transaction of Minerals resources after production. The Proclamation covers all transactions of minerals produced from all mining operations conducted in Ethiopia. We shall briefly look into the competency requirements, Licenses required, eligibility and duration of Licenses obtained.
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 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.
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