Draft Mining Proclamation Tabled to the House of Peoples’ Representatives

Draft Mining Proclamation Tabled to the House of Peoples’ Representatives

The 19^th regular meeting of the Council of Ministers, with consensus, resolved to refer the draft mining proclamation to the House of Peoples’ Representatives on April 10, 2023.

The new bill, when enacted, will repeal the Mining Operations Proclamation No. 678/2010 which has been operational for the past 13 years.

The draft bill anticipates realizing import substitution, enhancing export, and creating job opportunities in the long run. It envisions introducing efficient and competent mining and resource administration system that gives consideration to the well-being of the environment. It was also reported that the widespread illegal gold mining and trade necessitated the draft bill.

Expected Introductions by the Draft Bill

Subject to changes, these are some of the features to be included in the draft bill:

• Regional states will be entitled to 2% of the profits (in addition to royalty fees) of a mining company engaging in a mining activity within their respective regions.
• It will provide measures to be taken against mining companies failing to become operational within some years after getting a permit to operate.
• It will introduce measures to oversee the operations of mining companies in Ethiopia with the aim to boost efficiency.
• The draft bill is expected to address the rights and responsibilities of mining companies profoundly.
• It is also expected for the draft bill to comprise provisions dealing with the permits of mining consultancy firms and other companies providing technical support for mining operations.
• The procedures of expropriation (eminent domain) by the government over mining land are covered by the draft bill. The bill also gives a guide as to how compensation is provided for those who lost their land-use deeds.

Disclaimer: The views and opinions expressed do not reflect the official policy or position of DABLO. The writing is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation.