The leadership of the Ministry of Mines and employees of the ministry are deliberating on the second GTP at the ministry from October1-5. In the sideline of the meeting Minister Tolossa Shagi told The Reporter that the ministry anticipates to earn three billion dollars a year as of 2020. Tolossa said that the foreign currency would be garnered from gold, potash, tantalum minerals and gas exports.

 

"We hope to start gas export from the Ogaden region by 2018. At least two companies would start potash export from the Afar region in the second GTP term," the minister said.

 

The Chinese company, Poly GCL, is working on natural gas field development project in the Ogaden basin in the Somali Regional State in Calub and Hilala localities. The company plans to produce three million tons of Liquefied Natural Gas (LNG) annually and mainly export it to China through the Port of Djibouti. The total amount of natural gas the company plans to pump out from the two gas fields each year is 4 billion cu.m. The total investment cost of the gas development project is estimated at four billion dollars. The company hopes to start production in 2018. More than one billion dollars earning is expected from the gas export in a year.

 

Tolossa said that Yara Dallol BV and Circum Resources would begin mining potash deposits in the Afar Regional State in the second GTP term. Allana Potash, the Canadian company that was under preparation to commence potash export failed to realize the project due to the nose diving commodity price in the international market.

 

Allana has sold its concession to the Israeli mining giant, ICL. Tolossa said the ministry is not formally communicated about the transaction. "Allana did not proceed with the potash development project as we planned due to the price fall in the international market," the minister said.

 

Four companies (KEFI Minerals, MIDROC Gold, Ascom and Ezana Mining) are expected to open new gold mines in different parts of the country.

 

The Ethiopian government earned a total of 2.4 billion dollars from minerals exports in the first GTP term (2011-2015). The country generates 500 million dollars foreign currency from minerals exports in a year-the lion's share coming from gold export. Artisanal miners produce the majority of the gold. The earning from gold export has declined since the gold market crash in 2013.

 

During the discussion on GTP II, state minister of the Ministry of Mines, Alemu Sime (PhD), said that the mining sector should integrate with manufacturing, construction and agriculture sectors. Alemu said much emphasis would be given to industrial minerals that would supplement the manufacturing, construction and agriculture sectors.

Source : allafrica.com