A multinational mining company engaged in gold exploration projects in western part of Ethiopia, Ascom Mining Ethiopia PLC, is holding talks with the Ethiopian Ministry of Mines to secure a large-scale gold mining license.
Ascom Mining has been prospecting for gold in the Benishnagul Gumuz Regional State, Assosa Zone, Sherkole Wereda, Shungu and Nazali localities since 2009. The company has discovered a large amount of primary gold in the license area which covers 268.17 sq.km of land. The gold deposit is found in a mountain commonly called Dish mountain.
Last March, experts of Ascom made a presentation to officials of the Ethiopian Ministry of Mines about the gold discovery. Reliable sources told The Reporter that officials of the ministry were happy with the presentation. Sources said the company conducted feasibility study.
A senior official at the Ministry of Mines told The Reporter that executives of Ascom and the ministry are holding talks on the gold mining license. The official said the ministry will grant the company a large-scale gold mining license once the negotiations are finalized.
The official said Ascom has made the largest gold discovery in the history of gold exploration in Ethiopia. “Once the company acquired the license it will develop the mine with in a year,” the official said. The gold deposit is estimated at more than 100 tons.
Ascom Mining Ethiopia PLC got its gold and base metals exploration license through transfer from previous license holder Ariab Gold Mining PLC (Sudanese and Ethiopian JV Company) on November 20, 2008.
The license was previously granted to Ariab Gold Mining PLC on May 7, 2007. Ascom Mining Ethiopia PLC constitutes of ASCOM PRECIOUS METALS BVI owning 96 percent of the share and Ariab Gold Mining PLC owning the remaining 4 percent.
According to the Ministry of Mines, in accordance with the mining law, in addition to the initial first three years the license has been renewed four times relinquishing 25 percent from the retained license area at each renewal. The ministry said the company is currently in its 7th year exploration period working in 268.17 sq.km area.
So far MIDROC Gold is the only company engaged in large-scale gold mining activity. In 2012, the ministry granted Ezana Mining PLC large-scale gold mining. Ascom will be the third company to secure large scale gold mining license.
A British company, Nyota Minerals, was about to secure its large-scale gold mining license to mine the Tulu Kapi gold mine in west Wollega. However, the company recently farmed out its concession to another UK company, KEFI Minerals. KEFI Minerals will soon apply for large scale gold mining license.
[TheReporterEthiopia]