Mining Companies Present Complaints To PM Office

The governments of Ethiopia and China signed a bilateral cooperation agreement to jointly undertake a geophysical study in South Western part of Ethiopia. The two countries agreed that the Geological Survey institutes of both countries will jointly undertake the study. The government of China will cover the cost of the project and provide equipment and experts required for the project. The Reporter reported.

The joint study area covers 33,000 sq. km of land stretching all the way from Assosa, the capital of Benishangul Gumuz Regional State to Gambella Regional State. China allocated USD ten million for the joint study.

The south western part of Ethiopia is known for different mineral resources including gold. The geological surveys are trying to identify the mineral resources of the concession area. Chinese and Ethiopian geologists are jointly working to learn about the types of the existing minerals. The cost of the exploration project is covered by the Chinese government. However, Ethiopian and foreign mining companies are not happy at all with this project. They are wary of the Chinese move.

Reliable sources told The Reporter that a group of companies who claim that some companies secured land in the joint study area filed their complaints to the Office of the Prime Minister. According to sources, the companies have two complaints. “First, how can the government grant a vast land of land exclusively to China? Second, some companies have been granted exploration license in the joint study area while others were denied.”

Last week, it was reported that at a two day consultative meeting organized by the Ministry of Mines at the Ghion Hotel representatives of Ethiopian and foreign companies expressed their grievances over the project.

Some of the participants said that the southern and western part of Ethiopia is rich in mineral resources and asked why the ministry gave a vast area exclusively for the Chinese.  Representatives of different companies said that they can conduct the exploration work by themselves if they can secure concessions from the ministry.

Ethiopian and foreign mining companies fear that they would not be able to secure concession the in the joint study area even after the Chinese finalized the study. Representatives of mining companies told The Reporter that the Chinese Geological Survey will hand over the geological data to Chinese mining companies even before the joint study is finalized. “Based on the data the Chinese companies apply for the most promising areas as soon as the joint study is completed. So that other companies will not have the chance to secure concessions in those areas,” they lamented.

State minister of the Ministry of Mines, Tolosa Shagi, told the participants that the joint study is being undertaken based on a bilateral agreement signed by the Ethiopian and Chinese governments. “It is financed by the Chinese government. They are collective useful geological data from the joint study area. They are doing what we were unable to do by ourselves. The geological data collected by the Chinese will be made available for all interested companies when the joint study is completed,” Tolosa said. He added that it will take three years to finalize the study and asked the investors to be patient.

Source: The Reporter