CORE MINING LEGISLATION AND REGULATIONS
• Mining Operation Proclamation No. 678/2010 (as amended by
Proclamation No. 813/2013)
• Mining Regulation Proclamation No. 423/2018
• Transaction of Precious Minerals Proclamation No. 651/2009
TAX Income
Tax Proclamation No. 979/2016
ENVIRONMENT Environmental Impact Assessment (EIA) Proclamation No. 299/2002
COMMERCIAL LICENCING
Commercial Registration and Licencing Proclamation No. 980/2016
HUMAN RIGHTS AND CIVIL SOCIETY
• Ethiopian Human Rights Commission Proclamation No. 210/2000
• Cooperative Society Proclamation No. 985/2016
• Organisations of Civil Societies Proclamation No. 1113/2019
• Establishment of Cooperative Association Proclamation
No. 274/2002
LAND USE
• Rural Land Administration and Land Use Proclamation No.
456/2005
• Expropriation of Landholding for Public Purposes and Payment
of Compensation Proclamation
LABOUR
Labour Proclamation No. 377/2003
The Mineral sector is regulated by multiple Proclamations and regulations for mining operations in
Ethiopia. Most recently, it has reviewed and developed mineral and petroleum policies, as well as
proclamations related to mining operations and transactions.
MINING REGULATION PROCLAMATION NO. 423/2018
This is the key legislation that regulates the mining sector. It was amended in 2018. The Proclamation seeks to enshrine the principle of custodianship of the country’s mineral resources by the Government; promote socio-economic growth of the country; promote employment and advance the social and economic welfare of all Ethiopians; provide for security of tenure for all investors in respect of exploration and mining operations; and ensure that the country’s mineral resources are developed in an orderly and sustainable manner. The amendments provides additional incentives, government participation, royalty regulations, social responsibility as well as the size of the licence area.
MINING OPERATION PROCLAMATION NO.678/2010 (AS AMENDED BY PROCLAMATION NO 813/2013)
This Proclamation promotes sustainable development of mineral resources. It governs the conduct of all mining operations and related activities within Ethiopia. Its purpose is to ensure that the country’s mineral resources are developed in an orderly and suitable manner. Key provisions state that no mining licences may be granted within areas reserved for natural habitats or national parks or within 500 metres from the boundary of a village, city or water reservoir or dam without the consent of the competent body. It emphasises that a licence may be revoked if there is a breach of the approved environmental impact assessment, and safety and health standards. The proclamation has in place measures to ensure community development plans are established within the licence area. Even after a mine closure certificate has been issued the licencee must continue to monitor environmental effects
MINING INCOME TAX PROCLAMATION NO. 53/1993 T
his Proclamation provides for the payment of tax on income from mining operations. It highlights tax allocations for different operations. For instance, large-scale mining operations will provide allocations to joint federal and regional governments while small-scale and artisanal mining operations provide to regional states. The joint federal – regional income tax from large[1]scale mining operations is allocated based on a 50/50% ratio. It also highlights that mining income tax from large-scale operations is administered by the Ministry of Revenue. The mining income tax law gives power to adjust income and expenditures between affiliated parties to the licencing authority while tax is administered by the revenue authority.
- Ethiopian Mineral, Petroleum and Biofuel Corporation
- The Environment, Forest and Climate Change Commission
- The Ethiopian Investment Commission
How to register on the online Ethiopian Mining Cadaster Portal | |
Step 1 | Visit: https://ethiopian.portal. miningcadastre.com/ |
Step 2 | Download a registration form and complete it |
Step 3 | Fill in your details on the online Cadaster portal |
Step 4 | Upload scanned copy of your registration form and identity |
Step 5 | Check your email for link to set password |
Step 6 | Set your password |
Step 7 | Wait for the MoMP Licensing Office to update your account |
Step 8 | Receive email from the MoMP Licensing Office confirming update |
Step 9 | You are now valid to use the Cadaster Portal |
How to apply for a Mining License | |
Step 1 | Go to: https://ethiopian.portal. miningcadastre.com |
Step 2 | Log in to your account |
Step 3 | Select ”New Application” menu option |
Step 4 | Follow the instructions carefully and fill in all required information |
Step 5 | Upload all required documents |
Step 6 | Pay application fee |
Step 7 | Upload application payment fee receipt |
Step 8 | MoMP reviews application |
Step 9 | MoMP submits application to Council of Ministers for sign off and approval |
Step 10 | MoMP grants license |
Exploration License
- Allows its holders to search for any mineral in a specified region by means of photographs, images, geological, geochemical, geophysical or drilling. This license is exclusive and is initially issued for 3 years. An Exploration
Retention License
- Can be issued to an applicant that has discovered a mineral resource of economic significance, but which cannot be developed immediately due to adverse market conditions or because the required processing technology might be unavailable. This is an exclusive license that is initially issued for 3 years. After the 3-year period, the license may be renewed once more for an additional 3 years
Artisanal mineral operations License
- Issued either to an individual or a small or micro-enterprise whose mining operation is mostly manual and does not involve employed workers. It is Exclusive, non-renewable and issued for a maximum of 2 years.
Special small scale mineral operations License
- Issued to holders of an Artisanal Mineral Operations License who later have the capacity to employ machinery in their mining operations. A Special small-scale Mineral Operations License is exclusive and is only issued to holders of an Artisanal Mineral Operations License. Initially issued for 10 years, thereafter it needs to be renewed every 5 years.
Small scale mineral operations License
- A Special Small-Scale Mineral Operations License is exclusive, initially issued for 10 years, thereafter it needs to be renewed every 5 years. The maximum run-of-mine ore for a Small-Scale Mineral Operations License varies depending on the Mineral, It is highlighted below:
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- The maximum for Metallic minerals (e.g. iron, lead, copper or nickel):
- 150, 000 tons for an open pit mine
- 75, 000 tons for underground operations
- The maximum for Metallic minerals (e.g. iron, lead, copper or nickel):
-
- The maximum for Industrial minerals (e.g. kaolin, bentonite, diatomite, dolomite, quartz or coal)
- 120, 000 tons
- The maximum for Industrial minerals (e.g. kaolin, bentonite, diatomite, dolomite, quartz or coal)
-
- The maximum for Construction minerals:
- 80, 000 cubic meters for material like sand, gravel, pumice, ignimbrite or clay
- 10, 000 cubic meters for dimension stones (e.g. marble or granite)
- The maximum for Construction minerals:
-
- The maximum for Salts extracted from brine:
- 14, 000 tons Precious or semi-precious stones, the maximum:
- 100, 000 cubic meters for a placer operation
- 75, 000 tons for a primary deposit mining operation
- The maximum for Salts extracted from brine: