The Ministry of Mines is going to grant a large-scale gold mining license to Ascom Mining, an international mining firm engaged in primary gold exploration project in the Benishangul Gumuz Regional State in south-west Ethiopia.
ASCOM is a multinational mining company involved in prospecting for gold in Benishangul Gumuz Regional State, Assosa Zone, Sherkole Wereda, Shungu and Nazali localities since 2009.
The firm made a discovery of a large amount of primary gold in the license area covering 268.17 sq.m. of land in a mountain commonly known as Dish Mountain. It was in March 2014 that ASCOM’s experts made presentation about the gold discovery to officials of the Ministry of Mines in Addis Ababa. The gold deposit is projected to be more than 70 tons.
The Minister of Mines, Tolossa Shagi Moti, told The Reporter that experts of Ascom presented progress report to the ministry twice. “We have informed them to expedite work on the feasibility study,” Tolossa said. According to the minister, once the company finalizes the feasibility study the ministry will review the study and grant the large-scale mining license to the company.
“They have confirmed the presence of the resource. They are now working on the final feasibility study. Once they have submitted the final study we shall grant them the mining license,” the minister told The Reporter.
It was on November 20, 2008 that ASCOM secured a gold and base metals exploration license after Ariab Gold Mining Plc, Sudanese and Ethiopian JV Company, transferred it to the former.
Shareholders of ASCOM Mining Ethiopia Plc are ASCOM Precious Metals BVI, holding 96 percent of the company, and Ariab Gold Mining Plc, owning the rest, 4 percent. Shareholders have different nationalities and are from Sudan, Egypt, the Middle East and other North African countries. In addition to the Benshangul Gumuz site, ASCOM has another exploration license in Ethiopia, in the Gambella Regional State.
Thus far the only company engaged in a large-scale gold mining in Ethiopia is MIDROC Gold. Nonetheless, two years ago in 2012 another firm, Ezana Mining Plc, secured a large-scale gold mining license from the Ministry of Mines.
[TheReporterEthiopia]