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AoYuIrA ~;J6+ ;JltllJ

FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

Ok.'J-r-A-.r 4U'..&-~<ell'Ph&-f\.r<e 6Tilt\.h 16thYear No. 45

hp&-181:M-r; 'OD.'J- 4I1'C !;~
fib'llil +CD..,r-'T rhc o..'J- mq4:~.'J- fCDIIJ
hJL18 M)q dtfOt\. 3'~ .,., litf ADDIS ABABA 4thAugest. 2010

"'(J)-65}, CONTENTS

h~~ ckTC }I~tlritf Ii.?" Proclamation No. 678/2010

rOlJo.(''} P'lrfD"f htp~ ...;.. 'IX" ~i'i.rfitl; Mining OperationsProclamation.. .Page 5385

PROCLAMATION NO. 678/2010.

h'P~ eIITC ?;f{:~/Iitl
A PROCLAMATION TO PROMOTE
1\ rl1''1 rlPJ61:1 "11~ lPJ~
SUSTAINABLE DEVELOPMENT
falPJ9"lfI~ rmlfl hCP~ OF MINERAL RESOURCES

Oh.~r-W f &o~t-l\Cf .tlcr'nt-tt.rCf tT11fLn WHEREAS the Constitution of the Federal

ri1'1 UD1'1P~ r1'&.£f'~ V11~ qfan.~'1r Democratic Republic of Ethiopia provides that the right to
rUD1'1prCj rri11111 UDI1''r r1'~'1'1'1 ADI!V''rCj ownership of all natural resources of Ethiopia is
UD1'1PrfJU ~U1 V11r' rUDmO~ ~l\k'1r exclusivelyvested in the governmentand in the peoples' of
r1'lfIfaO~ {1oul1''r! Ethiopia and that the governmentis the custodianthereof;
d'"

lPJ61:Cjr rOTJ~:r~~ r1'&.£f'~ - LJ11~'f WHEREAS minerals are non-renewable naijIral

OUDI1'Cj:fc& £f'O~:fc&Cj ftoOl\ h. rr-W fCff1 resources and that the government shall ensure the
h.pc;'OTJ..fCfCj lPJ10t-Cf £f'~fJU ooCPl\:fc& conservation and development of these resources to
Ooo1'1pr ool;J'1£f' ffaOr {}fal1''1! the socio-economic progress of all Ethiopians;

fah~'rCj fa(D~k1:fJU rc&A1: £f'~fJU hl1qfl 1 WHEREASit is the obligation of the government to
oomO~Cj hp'1fJUU~C ;JC rOTJ..l11l11fJU Hl\~'1r protect the environment for the benefit of present and
fftc& rlPJ61:1 AlPJr1 OIJl;J'1£f' roo1'1pr future generations and to ensure ecologically sustainable
~l\k '1~ OUDI1''r! developmentof minerals;

h'1tt.U1 C}l\OTJiD'f h'111 ftOTJ1:l{} rOTJ61:1 WHEREAS to achieve these ends it is essential
Pt-iD'f1 01'UDfah1' h.tl{} ri1'1 OTJC&l11rto promulgate a new law on mining operations;
1

OlPJ{}&.fa'1'
! .
NOW, THEREFORE, in accordance with Article
Oh.rr-wf &oYut-l\Cf .tlcr'nt-t'tfCf tTl1fLn 55(1) of the Constitution of the Federal Democratic
ri1'1 UD1'1pr h1CP?\ 2G(li) oolPlr 1 Republic of Ethiopia, it is hereby proclaimed as follows:
rOTJ..h1'ftc& :rc&~A::
~?~.}o ?lI.iIJ T."'.4-.. ilttli
y")~ <P;J 21. 00
Unit Price Negarit G. P.O.Box 80001
1j\' ~1trfitl ~~t-A '1?t:" ?lI.tIl "'",C ~~ ihlJ"h. ~~ 4>1 litf '}.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5386

}1~A h 1~
m.}l\l\ PART ONE
GENERAL
lie h6J,bC C6Q
1. Short Title

~u hCP1: "rtPJ6~1 PIr?l"f hCP"!: 4:I'C

7;X{f~/gitg" -t11ft-> fLln~iI ~"fl\A:: This Proclamation may be cited as the "Mining
Operations Proclamation No. 678/20 10".

I. -rC:JOIJ. I 2. Definitions
r:p~ hDJfll1 fbl\ -rC~~ r01J.,romm- In this Proclamation, unless the context
S,A(f~ Oil1'~C mtu hP"!: m-ill':- otherwise requires:

-
lil «ooool\mC rfbftO-r DJl1~-r" tPJftT 11 "anns length transaction" means the value of
r01J.omm-1 rtPJ6~1 'i11-r 1'1r-re; any mineral resource at a commercial price that
oom1 11:f DJ~-r m-ill' OtPJiI'lf}T would have been agreed to by unconnected
~1~ 7iCne; m~~ r-tftr' DJ1~~T persons for such a resource if those persons
Ofbl\Tm- O?l"f ooS,hA ODJAK' 'l0,r were fi'eely negotiating on the open market
l\~ O~'~C~C rtLU h~~-r 'il1T under similar circumstancestaking into account
O1'ool\l\~ 001J.01'OT rr'l»:J' l\~ solely the characteristicsof quality and quantity
-tooilC-f r01J.Cjlm- r'lo,r CP;J ~m- I of the mineral resource transferred~

II "f};ol\1! rtPJ6~1 tPJ~l-r PIr" tPJft-r 2/ "artisanal mining" means' a mihing

hl1tJ;;:m- -tDJf1C Oh"!: r01J.he;m-1 he; operation carried out by individuals or
-t~fllt OIr1';;: rtPJ~l\1'~O-r ODJfton"f cooperativeswhich is mostly of manual
m~~ O'111lT PIr tPJ10lrT nature and that does not ;involve the
r01J.he;m1 rtPJ6~1 tPJ~l-r PIr ~m-I engagement of employed workers;

rl «rn1i1-rlrn7i1 tPJ6~1)1 tPJftT tPJe;T- 3/ "construction mineral" means any mineral

m-~ 0~1':J'~ (f~ O-tWPCPt oo1'l~ directly or indirectly used as input for
ftn1i1Tlrn7i1 ODJl1l}-r~T r01J.,r'lftDJA
construction purposes such as marble,
h1Y. 611~Ol~: DJIre;~T: l\~~iI-f1
f1tJA-r: hoCP: mmC: ~ DJ~~l1&.~ granite, limestone, basalt, sand, aggregate,
-re; ronl\ h&'C rooOft tPJ6~1 (L(f1: ignimbrite and clay and includes any other
01J.~il1:? 00000 t,r rn1i1-rlrn7i1 non-metallic mineral designated as such by
tPJ6~1 11ft-> r01J.o~oom-' l1lT ~n directives of the Ministry;
,rA(f~ fbl\ tPJ6~11 ~Q;\.~IrA I

gl «hl\4: 6:p?I"f» tPJft-r fttPJ6~1 PIr 4/ "consumables" means anything needed for
r01J.,ril&.A~e; OtPJ6~1 Plrm- m.}T mining operations that are expendable and
01'~~ l\~ m-ftm- r01J.-t~ h.01J.s,- replaced during service including
ft->"f1 Q;\.~~ ot~{}1:? Oooootf hl\4: chemicals and those the Ministry may, by
6:p?I"f 11ft->r01J.o~tPJ:fm- e;:fm- I directives, designate as consumables;
l;1 «4>1>'tPJft-r 0~1 oo4:mt,r l\~ rO&.l 5/ "day" means a calendar day and when any
tPJ1;;:m-~ 4>1 (L(f1: OtLU hCP"!:: particular number of days are prescribed
0Y.111 m~~ Oooootf r-toofth-t for the doing of any thing 4t this
-tDJf}C1 fttPJhe;m1 r-tmo'r ~e;-r Proclamation, regulations or directives,
1'~Cml& hlf~ 4>e;1: r01J.mO'rT
those days shall be determined by
rooJ!oot,rm-1 ~1 Ooo~~iI he; hrr~e;
excluding the first and including the last
.}~OIJ. m~~ 0;01111 Ohl\-r l\~
hilS,ACPft ~lil rooQ;\.li'im-1 ~1 day, unless the last day falls on a Saturday,
OOOQ;\.ooC~(fe; A I a Sunday or any public holiday;
.,~" ~1f.rfit~ ~~&-IA .,?~;j. ?lLfIl <IITC !?li th9"1\. tt~ .,.1 frill c}.9" Federal Negarit Gazeta No. 45 41hAugust, 2010 page 5387

II «00 00 tY" OIJI\T fltlU hCP1: OOlPlT 6/ "directives" means directives issued
f'O'l.OJfIl ooootf ~(&! pursuant to this Proclamation~

't/ "f h1C o>-{)~ QlUJ11+" tnJfI+ f h:>1i{)- 7/ "domestic investor" means an Ethiopian or
+001+ ilT;rt.'\ n.P-'t. I\~ fCPt. h.+r--
Wflf (j)~9" oP~n~ ooc:'tfo>- he+r-Wf a foreign national permanently residiIig in
o>-{)~ ftf~ fo>-6l" h1C tb;J f\.tf1i 001'1- Ethiopia having made. an investment, and
()+1e; fOO1'1{)+ ft.'\tnJ+ f:C~+1 h1,tt- .- includes the government, public enterprises
0-9" h 1~ h1C lD'{)~ QflV11+ oocfmC as well as a foreign national of Ethiopian
f Lfl1 n+o>-t.'\f: h. +r-Wflf f tf~ f o>-6l" origin and desiring to be considered as a
h1C tb;J1 ~(;tL9"t.t.'\! domestic investor~
.

1;/ "9"Coot." tnJfI+ tf1 .otto tnJof:1 fltnJ'1"'i+

nOlJe;ro>-9" f1fYrf:C (j)~9" hC'" 9"f:Ci 8/ "exploration" means searching for any mineral
nlD''I hill\+ h1,ttV-9'" "'~9" f\.t.'\ -tcfti:C' by means of photographs, images, geological,
n(j)flIc; n.,.l f-tcfflfl tnJof:1 hHt.\ hLC geochemical, geophysical and drilling methods
(j)~9" hfl+ o>-{)~ nhilQ(l I\~ flo>-~ which disturbs the surface or subsurface of the
nl1ll.f{)h+ t.\ 00t.'\t.- nc::.,.'1t. ti:e; 9"{)tto:fi earth, including any portion of the earth that is
n1L"tto1L i n1L"ktLn{) i n1LMtOlJ.{)+t i under water, or in or on any residue stockpile or
n-tflf~ f1-f:~f: <k4.C'e;noo"...tt-+ H~?':f residue deposit, in order to establish the
htnJil~~+ ftnJof:"i'1 ooc:'C i h.f1c:'l1Il.flf existence of any mineral and to determine the
m.,.DI1.;rlD'1 he; oom"i'1 fltnJ(j):,>e; extent and economic value~
fltnJfTJt.+ f€nJ.~l'1 PIr ~lD'!

9/ "foreign investor" means a foreign national

fJI «f'l&6L'> l11\VllT" OIJ1\T f'c&6L'>11'£:rt:\
or . an enterprise owned by foreign
OJ~ ~ Tr>WY OOlJ{}'Il1T ~ 1fj{}T f~l'l
f'c&6L'> 1t;J OJ~~ 0c&6L'> It? T nationals, having invested foreign capital
l11\o.T~T f'-tYti ~C1:T (LU'1 h1~ in Ethiopia, and includes an Ethiopian
c&6L'>l11\VllT oo~mC r &.1\'100~0~ permanently residing abroad preferring
~cpt~i: 0c&6L'>h'lC f'U'~ ~Tr>Wfce1 treatment as a foreign investor~
~tJ;\.SJ'1 t-t:\ !

II «oo1UJP'T" OIJI\T f'~ Tr>Wf Jo~t-i\ce

10/ "government" means the Government of
-'llfDnt-(LYlftTftfln 001UJP'T
OIJI\T n.U'1 h~~hUJl1~ nt:\ftoT1SJ'1 the Federal Democratic Republic of
~t;t).SJ'1 t- t:\ ! Ethiopia and includes states where
appropriate~

I~/ "fh. '}~()+t tnJof:'f' tnJfI+ n"'~;r9" tf~

n-tHCPcpt flh.1~{)+t n'1f1Ct+~+ fl1ll.f 11/ "industrial mineral" means ~y mineral
1f1'1t.\ h1~ il"t'L1i n.1.,.e;~+i IJ.C+l1i directly or indirectly used as industrial
ff:1;J~ h"'t.'\i 1\~9"{)"'1i 1L"'i"'9"i input such as kaolin, bentonite, quartz,
'Fl1Il.{)i f1inl\ hLCc; "It. ~~+ f oP...fI coal, limestone, gypsum, pumice, clay and
tnJ1~lD'9" tnJof:1 f\.tf1 i 11l + ~ne; graphite and includes any other mineral the
fhn~e; nhkt.\ fhn~ tnJof:e;+1 "~(;tL9"C Ministry may, by directives, designate as
l1Il."l.{)1;~ nooootf f h. 1~{)+t tnJof:1
11tto fl1ll."'~ooo>-1 tnJ1~O>-19" flA tnJof:1 such, excluding metallic and precious and
~(;tL9"t. t.\ ! ~ semi-precious minerals~

III «h~-t~ ~l;q r0lJ6~1 OIJcrlT' P't-" 12/ "large scale mining" means any mining
OIJI\T f'hO<'- OJ~SJ'1 Ohkt:\ f'hO<'- operation of which the armual run-of-mine
~1;Jr>T1 f'OIJSJ'1lTP't-1 flO'l.ool\trT ore exceeds the. limit stated in sub-article
11t:\U'~ O.,.C h0lJ6~~ P'~t- O«}OOT (35) of this Article with the exception of
f'0'l.~t\C& 0IJ6~1 htlt:\ h&'CC; ~1;J~ precious and semi-precious stones~
oom1 fltlU 2'11.,.1\ 1(){} h1.,.?\ (%)
h-tool\h-tc& oom1 ni\~ f'U'~
0IJ6~C;T1 f'OIJSJ'1lTP't- ~C&I
1jt ~n.rfit: 4.~&-A '1.7&.}-.7tr.1Il<II'I'Cijg dtr/b f~ .,., Ii'll 'U" Federal Negarit Gazeta No. 45 41hAugust, 2010 page 5388

If/ «&.lPY:» OTJftr miu hCP1: oolPlr 13/ "license" means a reconnaissance
roiJ..01' rOTJtJY:1 ~~r '£ VOCOOt.'£ .etl license, an exploration license, a
oo~rr m.eVO OTJVOlr 6.:p1: '1(&! retention license or a mining license
issued pursuant to this Proclamation~
14/ "license area" means any area which is
Ig/ «r&.:pY: nAA» OTJftr OTJCJ:farvoLlPY:
r"..omO-r p~t. '1(&! the subject of a license~

15/ "licensee" means the holder of a

Ill/ «l1ft&.lPY:»OTJftr Ottu hCP1: oolPlr
r""om r~~r &.lPY:'£. rVOCOOt. reconnaissance license, an exploration
&.lPY:'£ .etl rOO~rr !,.lPY: m.evo license, a retention license or a mining
rOTJVOl r &.lPY: r"..om(& 0(& m.evo license or any successor thereof~
"..".. tL(& '1(& !

I~/ «&.lPY: 06);1. l1ftpAII11» OTJftT ,h1~ 16/ "licensing authority" means the Ministry
hDJl1o. rOTJtJY:1c; it. '1C~ oiJ..'t{)rf;C of Mines and Energy or a state organ in
m.eVO OTJtJY:1 tlC~1 OoiJ..nnfthr charge of the mining sector as
~l\'(''1r r""omar rnAA ht]A '1(&! appropriate;

1%/ «l1lr '1n OTJtJY:1»OTJftr h1~ l1lr'£ 17/ "metallic mineral" means ;any mineral.
OD~l1 '£ '1th{) '£ hCt'\{) '£ nC:OTJ.er '£ such as iron, copper" zinc, lead,
'th.A'£ :J'1:J'ftVO OTJ1.?'t{) rooOft chromites, nickel, tantalum and
OTJtJf:1 iuf1,£ rhO?CJ Oh.(,A rhO? manganese and includes any other
OTJtJf:Cjr1 t'\.eQiliVOC oiJ..'t{)rf;?
mineral the Ministry may, by directives,
Ooooo&f l1lr '1n OTJtJY:1 l1fto
designate as such excluding precious and
roiJ..o.e00(&1 OTJ1~(&1VO ftA OTJtJY:1
.eQiliVOt.A ! semi-precious minerals;

18/ "mining" means any operation or

It/ «OTJtJf:1 OTJVOlr» OTffar OOTJCJ:f(&VO
h.e'1r tI.Qo OoiJ..hCJm1Pt. OTJtJY:11 activity directed at 'extracting minerals
0"16 VOY:C'£ OhCo VOY:C m.evo Oar'l from a mineral deposit on or in the earth
ht]l\r hoiJ.."1~rOTJtJf:1 nVOTr m.evo and water, any residue deposit or residue
"..&..(, rOTJtJY:1 nSJOTr (&{)1' stockpile by any method, and any
ftOTJarll1r roiJ..~lDJ Pt. iLU'1 hllu operation incidental thereto, such as
.?C r""fftl OTJhOTJ:fr1'£OTJtI.?~r1'£ storage, treatment, processing (excluding
Tc-o{) OTJf:lDJ1 (OTJ~fa1'1CJOTJII1t.r1 smelting and refining), transportation
t'\.eQiliVOC)'£. OTJ~~111CJ 0001'1 .. and disposal;
.eQiliVOt. A !

19/ "mineral" means any mineral substance

Iii/ «OTJtJY:1»OTJfar OTJCJ:f(&VOCP;J fft(& of economic value, whether in solid,
Omll1C.'£ 0&.t'\1i m.evo 0.?11 ooAn liquid or gaseous form, occurring
O""&'1'C: Ooo~r l\.e m.e9" ar{)1' '£
Oar'l ar{)1' m.evo {)C r01f."1~
naturallyon or within the earth or in or
O~~fto~ ~~r m.evo ~~:J'~T
under water and which was formed by or
r"..&.ml iLU'1 4'~VO iLA "..~~c: subjected to a geological process, and
(lmll1CJ "..t..(, r"..~ fafa OTJ tJf:1 h tlA includes any mineral occurring in
h&.C m.eVO 04'& rOTJtJY:1 nVOTr residue stockpiles or in residue deposits,
ar{)1' roiJ.."1~ OTJtJf:11 .eQiliVOt.A! but excludes:
U''iVO roiJ..h"..frr1 h.eQiliVOCVO:-

a) water, other than water used for

U) h(&{)nr OTJtJY:1 faOTJ(&lI1r the extractionof any mineralsuch
hoiJ..arA h1~ 11t..e 1 (&'1 O{)""4'C as brine;
tbl\ (&'I1!
,1~
',,- Qif.rfitii t...J!.MA'1,.:J6-r,.:JrLlll<Ir'l'C!1Q m"'f\. ~~ .,., liH <J.r Federal Negarit Gazeta No. 45 41hAugust, 2010 page 5389

, ") h.,Cl11 CI"ar r~~~ ;0., ~C:J01J. b) natural gas and .petroleum as
r01J.t)+1: r+&.1'~ Ii.e~e; ;J1I1! defined in the relevant petroleum
m) "cr h&.C1 (It.e;;:m-h&.C) 'he; law',
~~~ hliA h"~1 '(~~~ hli'" c) top soil and oil shale~ ;

itA) !

fi/ «r"'lerl~ &.:P~» 01J"~ Otlu hCP~- 20/ "mining license" means large scale,
oolPl~ r01J 1' rh~+;;: ~l;q:' small scale or artisanal mining license
rh~lt+;;:~l;q OJ.ecr rCl;oft'l! r"'ltJ~1 issued pursuant to this Proclamation~
"'lcr l ~ /»? ~ar! '

fi~/ «r"'ltJ~1 /»?» "'l"~ h"'ltJ~1 ~~:r: 21/ "mining operation" means any activity
crCoo?: .ett oo~r~ OJ.eer "'lerl~ associated with or connected to
;JC r+ "Ii 1'.,ClC ~m-!
reconnaissance, exploration, retention or
mmmg~-
fil/ «r"'ltJ~1 0011~» "'l"~ h~~~: 22/ "mineral right" means any right
hercoo?: .ett hoo~r~e; h"'lcrlT associated with reconnaissance license,
&.:P~ ;JC r+ "Ii 0011~ ~ar! exploration license, retention license or
mining license~
fiEf «(01J.'l.lti:C""'l"~ r"'lo~1e; h.~C:\ 23/ "Ministry" means the Ministry of Mines
O1J.'l.lti:COJ.ecr++h.m- ~ar! and Energy or any successor thereof~

fig/ «rhOl "'ltJ~1» OTJ"T 'h1~7lti:~rer: 24/ "precious mineral" means precious
OJc~e; 11C r 00,-,,, rhOl 11l~ ~n metallic mineral such as platinum, gold'
"'ltJ~1 OJ.ecr 'h1~ hA"'lll: ?fl: and silver or precious stone such as
h.oo?A~'i. l\4.rc ,,, rhOl ~1;J.e diamond, ruby, emerald and sapphire
(l1f1: 01J.'l.l1i:? Ooooot,r rhOl
"'ltJ~1 11ftor01J e00m-1 "'le;:far1cr and includes any other mineral the
fblt "'ltJ~1 .eater?A! Ministry may, by directives, designate as
such~

fi(;/«(.-.ar»"'l"~ O'J~arer r+&.1'~ .-.m- 25/ "person" means any natural or juridical
OJ.ecr 0;0., r'-'ar~~ 0011~ r+'-'mm- person~
ht)A ~ar!
26/ "processing" means winning, extracting,
fiZ/ «(T~.-.lt '''If:l''>> "'l"~ "'ltJ~11
concentrating, calcining, classifying,
o+ft,r Ii.eo "'lm-lfI~: oo~&.C:
crushing, screening, washing, reduction,
"'l1'''A: "'l~l~: Ol}.e~~ 0000~11:
oo~t;t).:r: "'lOmC: "'lm11: "'l~~~ or gasification of a mineral~
OJ.eer OJy.;JlIoof\OJ1' ~m-!

fi%/«(~~~» "'l"~ "'le;:fm-1er "'ltJ~1 27/ "reconnaissance"means.any operations

""'l"7~ r01J.t)~~ nm:PIt.e rlf~ carried on in a general search for any
rOTJtJ~1~tt;J P? ~m-! mineral;

fit/ «(0011111»
"'l"~ OtlU "cP~ r+oo"h- 28/ "register" means the register of mining
+m- r"'ltJ~1 0011.y.:r r+ooli1~Or rights or the electronic mining cadastre
0011111OJ.ecr r ~fbn~~'l.nlt r"'ltJ~1 provided for in this Proclamation~ '

t)~ltTC ~m-!
29/ "regulation" means regulation issued
fiii/ «(~111» "'l"~ OtlU nCP~ uolPl~ pursuant to this Proclamation~
r01J.OJlTI~ 111 ~m-!
. ~1tr:fj ~~6-1A '1;J(,T ;JlI.fIJ ~1'C ij~ "'VOt\ ?;':t 4>1 ~i'iJl 'UD Federal Negarit Gazeta No. 45 4th August, 2010 page 5390

(jjj «+~k hSJOTr» OTJ"r fOTJ6~1 &..~~ 30/ "residue deposit" means any residue
(L*liJ': (LOll1 OJ~SJO tloo~ (L,O~ stockpile remaining at the termination,
f'10l OTJC;:fOJ-SJO
+~k OTJtJ~1 htlt\ revocation or expiry of any mining
~t\t\ '1OJ-I license;
{jj~j «+~k OTJ6~1 htlt\ ~t\(,\" OTJ"r hOTJtJ 31/ "residue stockpile" means any debris,
~1 p ~ f+17 OJ~SJO OOTJ6~1
discard, tailings, slimes, screening,
P~OJ- SJOh1.f'r fOJflIC; OOTJ6~1 Cl"&..
slurry, waste rock, foundry sand,
~~ 'h1~1C; iJ'~SJO I\~ "OTJCPt\ :t'f1n
+~t\fto: +~SJO(f1 OJ~SJO +m~~qo . beneficiation plant waste, ash or any
f'10l (JJ~SJOf++(JJ OTJc;:fOJ-SJO ~~ 7i: other product derived from or incidental
OJ-~ct: hoC: 11~6J.b: 11fl1t : ~i'ii'i to a mining operation and which is
htlt\ ~~Cf1: OJ-~ct ~~).~~: h11lr stockpiled, stored or accumulated for
OTJ~ "61>1. f01J.(JJflI h1icP : fOTJOt\~ 1..f' potential re-use, or which is disposed of,
4.11tiJ ~i'ii'i: hoo ~ OJ~SJO OTJc;:fOJ-SJO by the holder of a mining license;
+l&.. SJOCr '1OJ-I

(jj~/ "C:f It.1: II 1171\:'-'fll7 iJ1: ') lJlI:'-' q ita.:,-. 32/ "royalty" means the payment to the government
ittf~(D- 00')"/ F:'-'C; c"h1l1l qit~~ 1: and peoples' who are the sole owners of the
mineral resources to be made by the licensee
hll7iJ1:,) 1I700~:F (1.f i\.f, h~fOO
for producing minerals from the production
C i-(D- fll7 iJ1: ') / c;:,-./ lJDC:,-. {Jf1. Jt(D- site of minerals and the percentage rate of
{JOO"'~ "fi-()i\ f"'lJD~:Fc; tf»h such payment is to be assessed from time to
(IJ~ ') l}.f,atlJDC f~h~it(D- h~f time excluding the price of production and
~(D-I . risk expenditures;

{jjrj «f7i,6J.b CP;J" OTJ"r hh. ~r-A"' 33/ "sales price" means the commercial
OJ~OJ-6J.bV1C 001J.I\hOr 11.1\ (6:11) price of minerals at the point of export
OJ~'r "V1C OJ-f1iJ' ~~:t'. flU'''} from Ethiopia (FOB) or, in the case of
h~cn'h f+&..fJooOr n:t' fOTJ6~'1- consumption within Ethiopia, at the
f10, CP;J f01J.h+"OJ- +~,,}c'''r '1OJ-:- point of delivery within Ethiopia, less:

0) 1I71Jf:'t-1 h-rool-rnT n;r (J)~ OJ-~ a) the cost of transportation, including

01C 11i1hll7/\hn+ hA (J)~/r l17i1lh insurance and. handling charges,
0., n;r f:lil fh.11i-t.1iICJ hll7~~l1 from the mining area to the point of
;JC f-r "It A~ A~ (J)~P':r- export or delivery; and
-ra1.rlOJ- f(J)fl]OJ- f+t.1iITC+
tp;J i 1tC;
ft) fOTJOt\~1.' OJ6);tpJ~ 'htLrr . b) the cost of smeltingand refiningor
h. rr-A", OJ-f1iJ' OOTJ6~'1- p~~ other processing costs; unless such
Ooo~O~'1r h01J.~l~ l/.~"'T ;JC other processing costs relate to
f+,,11- iJt\U''1 O~C OTJ6~"',,} processing normally carried out in
"OTJ~"~C; "OTJflI~r fOJar OJ~SJO Ethiopia in the mining area;
fbftoT fOTJOt\?1.' OJ6);tPJT I
{jj§/ "nh&'A fhnl '1I71Jf:T I17"T "1I7i1tp(lf~+ 34/ "semi-precious mineral" means gem
fOlJ.OJ-A (J)~ (J)f,r n-rL~C'nlf n1f:~+
f-rfl]ool 111~ ,,;; Air: P."f,T i "fLit1 i stonesthat are used forjewellerysucha~
;q.ctf,TCJ "ltt. f,T f oo{t" 1I71Jf:1 iUr1 i opal, rhodolite, olivine, jadite and
fhn~ II7IJf:CJT1 l\f,a1.rC OIJ.'l.il1;~ lazurite and includesany other minera]
noo~~f nh&,A fhnl 1171Jf:1 -otto the Ministry may, by directives
fOlJ.{tf,dnOJ-1 1171~OJ-~ M 1I71Jf:1 designate as such, excluding preciom
f,Q;\.rt.A i minerals;

{jjl;j«h'1f1+~ fOTJ6~"} OTJ'rlr p~» OTJ"r 35/

hOTJ6~'1- p~~ Ohoor f01J.ool+OJ- "small scale mining" means any mininl
rOTJ6~,,} htlt\ h&"CC; ~"};J~ -ODm~ operation of which the annual run-of
h01J.h+" OJ- fOTJ~Ot\iJ' 0flJ~"}
mine ore does not exceed:
fOTJSJOlr p~ '1OJ-:-
'lK' lilli:f1A 4.Jl.&-t:\'1?&.}-?If.tIJ 4c1'C ~li d.9"/b r: +, liU CJ.II" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5391

V) CDC~: Tt\1;-,.rSJD: llCCJ fbfto"f I . a) regarding gold, platinum, silver and

rhO?CJ Ohkt.\ rhO? OIJtJ~CJr1 other precious and semiprecious
Oowz.ooftnr:- minerals: .

(Ii) O~ftt.\ t\~ ftowz."''l.~ FI,.p1"f (1) 100,000m3 for placer operation~
lifit D'LrC t}.1l!

(2) 75,000 tons for primary deposit

(I) 0?a10 OIJtJ~1 nSJD"f"'"f t\~. mining~
rowz."''l.~ FI,.p1"f ~~it ""!

ft) h1~ lllr: hC"{}: oo~llCJ -,.h.t.\ b) regarding metallic minerals such as
roo"ofr D'L:J't.\ OIJtJ~CJT1oowz.oo iron, lead, copper and nickel:
fthT: . (1) 150,000 tons for open pit
(Ii) Ooo~r t\~ ftowz."''l.~FI,.p1"f mmmg~
lifYit ""! (2) 75,000 tons for under ground
(I) Ooo~T l&{}1' ftowz."''l.~pI,. mining operation~
p1"f ~~it ""! ;

th) h1~ "'~fL1: n.1"'CJ~:i:\ Itf"'OIJ c) 120,000 tones for industrial minerals
~T: P.ftoOlJ~T !lCT1fCJ r~1,;J~ such as kaolin, bentonite, diatomite,
hot.\ roo"ofr rh.1~{}Tt OIJtJ~ dolomite, quartz and coal~
CJT1 Oowz.oofthTlifiiit ""!
d) regarding construction minerals:
00) rJ11{}Tl,.n7i1 OIJtJ~CJT1 oowz.ooft-
hT:.
(Ii) hoP: mmC: ~owz.{}: h.~-,.- (1) 80,000 m3 for sand, gravel,
SJDlll,.~T: ront\ h&'CCJ roo- pumice, ignimbrite, clay and the
"ofrT1 Oowz.oofthr ifit like',
D'LTC t}.1l!
(2) 1O,000m3for dimension stones
(I) hll'10l~: ~I,.CJ~TCJ roo"o- such as marble and granite~
frr1 r.q~D'L1711 ~1,;Jr-"f
Oowz.oofthr Iit D'LTC t}.1l!
e) regarding geothermal deposit:
LP) r1t~i'COIJt.\ nSJD"fT1 Oowz.oofthr:.
(1) 2,000,00Om3 for bathing,
(/i) ftoo:J'mrtf: ftoo1fCJ~CJftthn- recreational and medicinal
SJDCJ h1t.\~ftoT rowz.l&frT1
Oowz.oofthT I~t\. Y.1 D'LTC pwpose~
t}.1l!
(I) fth.1~{}TtCJ ftfbfto"f h1t.\~- (2) 25 mega watt or geothermal
fto"'"f rowz.l&frT1 Oowz.oofthT steam capable of generating
ii~ D'L,;JPT CD~SJDi'ooillill:OS equivalent power for industrial
rlf'1 ?~t.\ fLo1' rowz."ft.\r1t~ and other purposes~
i'COIJt.\ h14.ftoT!
l) h~1,;J~ CD~cr hlll,.~ 1 rowz.ool1:
r~l& l}~'1"'"f1 Oowz.oofthTIgit f) 14,000 tons for salts extracted from
.,., ! brines~
ijjll «nt.\t.\" OIJftT Oh.Tr-*, f k~I,.t\'f 36/ "state" means any state specified under
ItlJOnl,.o.f'f tTllfLn th1 001~FT Article 47(1) of the Constitution of the
h1+?a !1Z(1i) ri'oofthi'l& OIJWl&SJD Federal Democratic Republic of
nAt.\ 0.1f1: rhlt{} hOflCJ r~~.qp Ethiopia, and includes the Addis Ababa
hi'lJO"f h{}i'.q~c:"f1SJD ~~SJD I,.t.\ ! and Dire Dawa city administrations~
71\' ~ltrl1l 4.~&-A '1;7&:" ;7tLtIJ <II'I'C ~~ dt,..f\.r: .,., flU ,.,.. Federal Negarit Gazeta No. 45 41bAugust, 2010 page 5392

ijjftl «flr?i;Jth OTJlJ1:T OTJftr trt ~fli;~ 371 "strategic mineral" means any mineral
Ooooo&f flr?i;Jth OTJlJ1:1 11fto the Ministry may, by directives,
rOto~oo(JJc OTJ1«;=(JJc~
OTJlJ1:1~(JJc! designate as such~
381 "transfer" means a sale, encumbrance,
ijj~/{(OTJfl+l\ft~» OTJftr' ooOiJ': Ofi~
inheritance, assignment or any other
OTJflf1f: OTJ(JJclfl:oo~l '1 o1~~ 011/\ transfer~
00111: OTJfl'f'l\ft~ ~(JJc!
.J,91 "work program" means the program of
ijjjJI«rP? TC''1?~» OTJftr fi1~~1~,
work for exploration or mining, as the
h'1fl11~r ft~Coo? o1~~ ftOTJ~l:f
P? rOt + C11 1fC1fC fl?(JJc1 : case may be, that shows details of the
. P?(JJc rtrthe;0110r1 ~It: O1(;];t (JJc 1 : work, the time schedule, the required
ooip~~ 1e; ro(JJc ')~(;\ fl11iJ'~1 budget, the organizational structure and
rOtf ool\hr lJ~1: ~(JJc! its manning~
401 any expression in the masculine gender
ifll OTJ1«;=(JJc~ 00111: ?;r r'f'1ft)\(JJc
h~.?1C (bT1~ ~Q;\.~?(;\:: includes the feminine.

r. ~ 3. Scope of Application
~v hip'/: Oh.rr-A' f &o~?l\tf -'lCfOh?- This Proclamation shall apply to and govern the
tLftf &T11fLh '1tir (JJcfliJ' Otrtl]'i.~ conduct of all mining operations and related
rOTJlJ1:1 P ?PJ"fe; 'f'ti01J'/: 'f''1fl&.+--I\~ activitieswithin the territoryof the Federal
I

'f't.~Ot ~lfe;(;\:: I I
! Democratic Republic of Ethiopia.

PART TWO
00
FUNDAMENTALPmNCWLESAND
GENERAL PROVISIONS

!i. lJl\OTJ 4. Objectives

rttv hip'/: hI\OTJPJ"f rOth'f'ftar e;:f(JJc:- The objeGtives of this Proclamation are to:

~I 001'1Pr r(}1&1:.1 rOTJlJ1:1 l/11r 11 give effect to the principle of the

ftODmO~ r'f'lflftOr1' ')I\k ~r 'f''1fl?tf custodianship' of the country's mineral
OTJ1:l'1 ! resources by the government~

II r(}1&1:1 h.f1crOtftfe; OTJ10?tf (;\OTJT 21 promote socio-economicgrowth of the

OTJfl4.4.r ! country~
rl rh. rr-A'ftff11 r P? fi1:(;\ OTJfl4.4.- 31 promote employment and advance the
re; OTJ10?tfe; h.ncrtrtftf iJ'~~ social and economic welfare of all
OTJ"~'1! . Ethiopians~

!il OOTJlJ1:1 ~Coo?e; OTJ~lr P? 41 provide for security of tenure for all
r'f'(}01J~r1 flft(}11.y."f r~tt;r ipflre; investors in respect of exploration and
OTJl.?1iJ'! fie; mining operations~and "
(;1 r(}1&1: rOTJlJ1:1 (}11r PClJre; 51 ensure that the country's mineral resources
HI\4:~T flftar ~'k:f' 00(;\OTJ1:
1 are developed in an orderly and sustainable
OTJl.?1~:: manner.
 \
\

'1'\ 1;ltrf:ir t..Y..&-1A'1?t:t- ?lI.fll <II'I'C !1li dtrfb tt~ 4>1 Ijti '1.9" Federal Negarit Gazeta No. 45 4tbAugust, 2010..., page 5393

1;. "OtJlJ1:1 'i11~ mil '1~ 5. Custodianship of Mineral Resources

~I fI~ ~r-A"r CDo1 CD-ftr fI'1~ ~f:C~ 1/ Mineral resources existing in their natural
tf~ flhCo ~1:C fI+~'I'C'o'f tr~;rCD- condition on, in, and under the territory of
r01J.'1~ rOtJlJ1:1 Vl1~ r001e6Jp~e; Ethiopia are the property of the
rv-ft.~ r~~r-A"r ;01ln"f Vl1~ ~CD-:: government and all the peoples of
Ethiopia.

II 001e6JP~ rOtJlJf:1 Vl1~1 fI;o1l11 f1~ "

fI.et1;rCD- PC flOtJ1:l e6J "trft.~ 2/ The government shall have the duty to hold
~ ~r-A"reef1 r :J~ 'I'~~e; lJ1:'1~ mineral resources, on behalf of the peoples,
ooPft.1 rOtJl:J'1'1' ~t\&,~~ hf\fI~:: and deploy them for the benefit and
rl 001e6JP~ fI~fP1: O~CD- 1lf\f1t.\1ll1 development of all Ethiopians.
h01JlJ~~~ r01JlJf:1 Vl1~1 .e~lllm~t.\:
3/ The government, acting through the
rf1+~1:~t.\ : ~fP f: .en.Illt.\:
.ehf\ht\t.\: ~fPJl."f1 rf1+~1:~t.\:: Licensing Authority, shall control and
administer mineral resources and grant,
refuse and'manage licenses.
I. 001P~1
6. Reservation of Land

~/rtlu h1~?\ 1eJ.f1h1~?\ (I) he; (r)

f:1:J'lfO"f h1~Tmfl<k tf~CD- 01Je;~- 1/ Subject to sub-articles (2) and (3) of this
CD-~ fI~ ~r-A" r CD-f1'1' r01J.'1~ oo~~ Article, any land in Ethiopia shall be
f\OtJlJf:1 P~fO"f h~~ .etfe;t.\::
available for mining oper~tions.

II 01J.~f1i;c;. f\V'1trf: 'I'~~ hf1~t\'1. ~CD-

'2/ Where the Ministry considers it that it is in
l1fto o.rSJD1 r ;n1111 O1Jf1;rCDctf
flO1JCD-Ill~ 01Je;~CD-~ oo~~ r01JlJf:1 the best interests of the country, it may, by
P ~ rOtJ.elJ~1:fI~ ~CD- l1fto ooht.\ht.\.
legal notice, reserve any land from mining
.e"ft\t.\: : operations.

rl 01Je;~CD-~ OCD- ~'I'~ fI+ttlttc;.~

P~~fO"f t\.e r01JlJ1:1 ~Coot. 3/ No person shall be granted;an exploration
~fP f: : ,et1 r oocfr~ ~fP f: CD.e~ license, a retention license or a mining
r01J~l~ ~fPf: h.eomCD-~:- license over an area:

V) f\oo fPl1CtJ If.e01Jli;r'f ~~r-"f a) reserved for cemeteriesand religious

fI+hf\ft. P~~fO"f! sites;
f\) r~f:oo ;rth ~t"'"f flft.Il~CD- b) containing archae~logicalremains or
CD.e~ 11th.~l{! oo;rortrfO"f nationalmonuments;
flcfuu.fl~CD-P~~fO"f!
c) reserved for physical infrastructure;
ch) f\oolPl+ t.\01J~. hCD-;rC'"f
fI+hf\ft. n;rfO"f!
00) f\+~'I'C' hlJflrt 'l'flfP CD.e~ f\11 d) within areas reserved for natural
/

th.~'f ;Ten O+hf\ft. P~~ habitats or national parks;

fO"f !
lP) "1-~~ {)AfTJ1f-t"'m(J}- hiJA iJM- e) within 500 metres from the boundary
cf>~ ncf>C hOD1~C',:y.i. hh-tOlJ~:y. of a village, city or water reservoir or
(J}~cr h(J}-'I OIJmt.cf>lPl.f~:y. (J}~cr dam without the consent of the
"If:n:y. n~f OIJ.+c hAA (J}-{)'}'!
(J}~cr .
competent body; or
l) flfbt\ ;oe6J fI+hf\hft. n;rfO"f:: f) reserved by any other law of the
country.
~ c7( FV'iO I...Y.&-IA ''1?t.} ?tf.flI ~'i'C !'ili m9"t\. t;~ .,., f1i.1l CJ.9" Federal Negarit Gazeta No. 45 4th August, 2010 page 5394

. I

§I fltLU h 1.,.1\ 1eJ.i1 h 1.,.?\ (I) 41 A legal notice issued pursuant to sub-
r+ovf\h+ar f ihllf1 DtJi1;rm<ty flP? article (2) of this Article, may not affect
I\~ WPf\O-t- .,., rOTJ6Y:1 00111-- land which, on the date of the notice is
O?-CJO'r00t.1-- I\~ i'&.~D1i.h~111~:: subject to a mineral right.

(:;1 001OJ/»1-- f\flffi.?'f '1'~9" o.qA 51 The government may, where it is in the
i'1{tar r01JI-JI-J?ihC9";Q +m{)fl. OtLU
national interest of the country, authorize
h1.,.y\ 1(}-tI h1.,.y\ (10 m~9" (C). the opening of any reserved area under
oolPl7o ri'hf\ft OTJ'}?;arlJD P~t. sub-articles (2) or (3) of this Article for
f\OTJ6Y:1 R'-'? tr~7o h1-'l111 t\.&.~Y:
mining operations upon providing
~'fl\t.\:: /
appropriate compensatory arrangements.

z.r &.~Y: hi'l&A1.'It 7. Requirement of License

f!1 OTJ1~ar~ oar OtLU h~'f: ooOl1t 11 No person may undertake mining
i'1{tar1 &.~Y: t'\Y1~ fOTJ6Y:1 operations without having obtained the
P ?PJ'f OTJ'q1J.Y:
h~'fA~:: relevant license under this Proclamation.
II OTJ1~ar~ oar roCJ &.~Y: t'\~~lar 21 No person may hold, transport or sell any
OTJ1~ar1~ OTJ6Y:1 Oi'&.iJ'c-h'f minerals in their natural state without
tr'£:t-ar ooYll: OTJtlPmC (JJ~~ having a valid license.
ooOiJ' h~'fA~::
31 A legitimate occupant of land may produce
rl fh;J'f' root.7o qf\.ett:t- rl1'1 oar and use for non commercial purpose, free
p~?ar OtLU hP'f: oolPl7o ri',rtl of charge and with out permission of the
m.e~ ri'hf\hf\ 'qAI1'1 Ol1i''''C
Licensing Authority, construction minerals
rta1i'17o?h7i1 OTJ6Y:CJ7o1 o.ett:t-ar
, PC h01J.1~ P~? Yf\h~.rCJ &.:PY: from the..area he occupies, provided that
the area is not excluded or reserved
t'\Yi1&.A1ar f\1OJY: 1\All '1 l}1t0TJ
h~C.y.. oom"'~ .e'fItA:: 11'~~ pursuant to the provisions of this
rhPt'\~ qf\.ett:t-PJ'f1 oot.7o m.ecr Proclamation and provided further that he
111l7o hm~"'~ OTJmh(D.e~ Oh'1tLtr does not disturb or damage the adjacent
It~ 'rP,r OTJY:li1rf\07o9":: occupant's land or property.
§I 01J1~(&~ oar ft1OJY: I\AI1'1 hl\OtJ 41 Any person may produce and use for non
00 11fl.'f 1 : UJy:n'f1: rharc-Tlt1 OTJl commercial purpose, without charge and
kYPJ'f1: 7ocruc7o n..y.."f'): I1i1T:t- with the permission of the Licensing
fr>'f1C; fbfr>'f r;nllf1 h1Ae6Jfr>r PI,. Authority, construction minerals for the
PJ'f1 f\ooP?7oC; f\ OOffl'11 &.:pY: construction and maintenance of roads,
06blar1 qf\pA«I1 hi1.,.Y:lfO HOTJi1 dams, airports, schools, hospitals and other
&..,.Y: rn1l17o?h7i1 0tJ6Y:CJ7o1.rf\h~Y
OTJcrlrCJ oom"'~ .e'flttA:: . public works.
51 ~y Ethiopian may ; conduct
(:;1 01J1~ar~ ~ 7or-Wfif &.;PY: q~~ l reaonnaissance without having license
ar9" rh1Y:1 l1l\~:pY: m~cr rt\ft oar provided that he does not interfere with the
ooflr t'\.e'11-J rOTJ6Y:i :';~r DtJ'q1J.Y:
rights of a licensee or any other person
~'fItA::

~. O001"? T f\ "''L~ rOTJtJf:1P? 'f

8. Government Minin!!Ouerations
001OJi'lr f\m~1t1t ~ta~01J. 6Y:1r mt'\~ The ,government may undertake nnrung
01J.CJ r01J.~ ?Tar1 rOlJtJY:1 P??J'f O?o- operations that are vital for the overall
m~~ he6JA qf\VfI.y..'f ;JC O~1'f:7o economic growth either by itself or in
t\.Y'rJL[.Y:~'f"A:: partnershipwithprivateinvestors.
11\' ~itrfj~ 4..y.&-&\'1?6-r ?rl.iIl <IITC~~ dt"-fb f~ 4>, letf ~,9" Federal Negarit Gazeta No. 45 41hAugust, 2010 page 5395

i!..~ 9. Tvnes of Licenses

mtu hP1: OOOlr rOthi'ft.r ~)1>p..":f The following lic~nsesmay be issued under this
fLOt1r ~"fl\tr:. Proclamation: i
~I r~~r~)1> f: ! 1/ a reconnaissancelicence;
II rSJDCoo&.~)1>f:! 2/ an explorationlicence;
rl ~tt roo~rr ~)1>Y:! 3/ a retentionlicence;
gl C)UI\If!r01J6f:1 O'JSJDlr P&' ~JPf:! 4/ artisanalmininglicense;
f;;1 rh~ili'~ ~l:q r0iJ6f:1 O1JSJDlrP&' 5/ smallscalemininglicence;and
~~f:! he;
~I rh~i'~ ~l:q 0'J6f:1 O'JSJDlr P&' 6/ large scale mining licence.
~JPf:::
I.~ 10. Tvnes of Certificates
f1tlu hP1: OOlPlr rOthi'trr rSJDilhC The following certificates may'be issued under
(J}l~"'":f fLot1r ~"fl\tr:- this Proclamation:
~I rDJ~r SJDilhC(J}l~r! 1/ a certificate of discovery;
II r~f 11)1>rO'Jl;J'161i.SJDilhC(J}l~r:: 2/ a certificate of professional competence.

Iii. & f: O'J r 11 I\oo1f1 11. Eli2ibility for License

~I 01J1~l&~ o~ f1tlu hCP1:: f1~111e; 1/ A license may be granted to any person
f1oouu&f OOlPlr~)1>f: I\O'JDJ1r who satisfies the requirements of the
rOtfil~A~ rr'k;rPJ":f1 11~1\: hDJc)11 relevant license set out in this
c)I\l& :ttDJ OOlPlr 1DJf: 0'J11tt.f:
Proclamation, regulations and directives
rOt":fA hlf~ : h 1-'lrrSJD rO'J6f:1
provided that the applicant is qualified to
P &.l&1 I\O'Jhe;(J}1 rOtfil~A '1(J)c
r'11"-f1 h~SJD f"OJ- (J}~SJD O1JDJ7r
carry on trade under the provisions of the
rOt ":fAe; ri:h'l.h '"ffto;r f"OJ- hlf~ relevant law and possess or has a
confinned access to finanCialresources and
/L)1>f:O'JDJ1r ~":fI\A::
technical comp~tence.

II 01J1~OJ-SJD oOJ- f1C1:tt1\1f! 0'J6f:1 2/ No person is required to possess financial

O1JSJDli:rP&' I\~ I\OOOO1J&.r r'11"11: resources, technical and professional
ri:h'l.he; r~f 11JPrhf{}~A'1OJ-SJD:: competence in order to carry on artisanal
mining operation.
- 3/ No license may be granted or held by:
rl rOthi'ft.r ~)1>f: O'JDJ7r h~":fft.SJD:-
a) a person who is un-rehabilitated
V) hhA&. fA(J}flI (J}~SJD hnf1~tPJ":f insolvent, or is under a scheme of
;JC f1'1C)OJ- PSJDSJD~r OOlPlr
h~l&1 hpC hp? Oooh~A I\~ arrangement with creditors;
fl\ ()c&!
b) a business organization which is in
1\) r01J~lo. l/.~:r r1DJf: 0'J1f1? 1 liquidation, other than a liquidation which
h1~'1e; I\O'J**SJD (J}~SJD hfbl\ fonns a part of a scheme for the
n-C)1f ;JC "O'JPtJf: hill1AIf~ reconstruction of the business organization
f:lil f1oo~lil I\~ fl\ r1DJf: or for its amalgamation with another
01J1f1C! business organization;
m) C):tt1\1f! rOTJ6f:1 O'JSJDlr tLlf1 c) a non-citizen of Ethiopia or a group of
h..rr-A' flf! Ii.DJ~r rfb"OJ- ()(D- persons, who are not registered as a
(J}~SJD hDJc)11 c)I\OJ- r111lr P&' cooperative society in accordance with the
01J1f1C :ttDJ OOlPlr fAi'ooJ1'1f1 relevant law where it is for artisanal
roPJ";f il11i111:: mining license.
1~ l;ltrfjl ~&-A '1?&-r ?fLlll cfI-rC ~?; J.IJ"h, tr~ .,.1 riU 'U" Federal Negarit Gazeta No. 45 41hAugust, 2010 page 5396

§/ OOl/"L'"OCOC (JJ~9" r+i\i\+ ool;q 4/ A licensee whose license is revoked due to

OOl/epl11 &.!P~ r+OlliO-r (}(\&.!p~ fraudulent misrepresentationor the presentation
&.!P~ h+OlliO-r cf>1h1{).y. (\h9"h-r of a false statement may not be granted another
hoo:t'-r tilt &.!P~ 0I/"17-r h~"fA9":: license lor five years starting from the date of
revocation of the previous license.

11.~ 12. A.I!I!licationsfor License

~/ h"1(}11~-r C}ItT(& rflu hCP~ ~1;J~ 1/ An application to be submitted to the Licensing

JU"f oolP l -r &.!P~ (\0I/'17-r -: (\0I/i\Y.{) Authority for the issuance, renewal or transfer
(JJ~9" nOl/{)+l\(\lJ: (\&.!P~ 06Q.(& of license in accordance with the relevant
(}(\p'AlTI1 r01J.cf>C11 OI/ooAh:r O+(JJ provisions of this Proclamation shall be in the
O~c& 6:C9" ooOl-r r1'li;JlIfCj:- form prescribed and:

a) be accompanied by the documentation

V) OtLU hCP~ -: 0Y.111CJ Oooootf
r+'1(\?r-r1 o~A"f r flie; nlJ:f required by this Proclamation,
r+&.~ooo-r he; -:
regulation and directive and with the
payment of the prescribed application
fee; and
(\) hoot\l1~ r1"1~ 0I/10C rlJ'~ h1Y. b) in the case where the applicant is a
If~ h"1q11~-r (}(\(& ;n"1 ooOl-r
business organization, be accompanied
r+ootl'10 oolf'r1 r01J.fl;J"11' OI/{)
l;qe; fbOoT h"1(}11~-r fltTc&1
with a documentaryproof that it is
fh;J'f o~A"f r fli -: registered as a business organization in
accordance with the relevant law and
oolf1 h(\O-r:: with other relevant legal documents.
2/ Where the Licensing Authority is satisfied
~/ &.!P~ o6Q. (}(\pAlTI1 rcf>lO(& 01/00 with the application, it shall forthwith
Ah:r O~ oolf'r1 lLf9"10-r (JJJtf(&~ register the same and give receipt to the
oo1f"1n (\hoob\l1~ Y.lo~ .eOlTlA:: applicant.

lr. 01/00 LJ'1~OT Y.9" I 13. Order of Processin2 of Applications

:f:ttta
1/ Unless the Licensing Authority determines
~/ &.!Pf: O"L'"(& (}(\p'AlTI1 rOl/tJ~'r1
otherwise on the basis of. the economic
h.f1Cj01J.f'f mcf>01J.:t'(JJ~9" fbOo"f h"1
c}11 fltTc&1 rh.1f'i{)-roo1-r o,ItOl/JU"f
benefit of the minerals or other appropriate
oolPl-r OOl/~l"1 Ofblt hlJ.:t1 I1A(JJo~
investment objectives:
Ocf>C:-

0) l\hfJ:r~ ~l;q "'0f:1 "'?BlT L:J>f: a) an application submitted for a larg~ scale
"cf>ln l1IJuoAh:r l\h~{)r~ ~l;q "l1IJo mining license shall take precedence over
l. T L:J>f:CJl\f1Uft«f ""'of: 1
f: 1 l1IJ?B applications for small scale and artisanal
"'?BlT L:J>f: ncf>l(}- l1IJuoAh~PJ"f mining lecenses, and an application for
h1.ctlJ-?B l\h~{)r~ ~l;q l1IJof:1 l1IJ?B small scale mining license shall take
l T L:J>.f: "cf>ln l1IJuo('\h~ l\f1Ufttf precedence over an application for
""'0f:1 "'?BlT L:J>f: n.,.ln l1IJuoA artisanal mining license;
/

h:r ft~ cf>~"'4~T~Cf?rCPA i

l\) L:J>f: (}~(J)- f1l\P'Afll1 l\h1f: ~~ b) if the Licensing Authority receives more
~T "'0f:1 nh1f: n~ ft~ h1~ h~ than one applications for licenses of the
~T ~l;q ftftr(J)- L:J>fl."f hh1f: nft~ same status covering the same mineral and
OiJuoAh:rPJ"f hcf>l(}-l\T l1IJuol.\h:rPJ:P' area, the applications shall be dealt with in
ncf>l(}-l\T :"~?B rhrA uol1lT,
l1IJ{)rCJ1f:hl\nT i . the order of receipt;
1~ ?;itCfn &..~&-t:\"?~T ?rl.ilJ ~TC !;?; th9"tt. t;; +1 li'U 'U" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5397

ill) tr"r (J)~/r htlf n~.e hooAI1¥f c) where two or more applicants lodge
"h1~ ~.e"1r tPJo~1 nh1~ n;r ~.e applications for licenses of the same status
nh1~ 'l.t1. h1~ h.e"1r ~l:q ~~r(JJ- at the same time covering the same mineral
L:J>P.'f tPJooAh~pJ~rcp-1 h-1'ln(JJ- and area, the Licensing Authority shall
hrf"1 L:J>~ (}{;I;}.(JJ- q"p' AIfI1 constitute a technical team to evaluate the
-1'~"tfiJr1 "oo(J)(}1 tPJooAh~pJ~1
f"t1ooUJ9" f~h'L.h i1'~1 f*tf!tPJAi applications and the priority shall be
determined on the basis of the evaluation
f~h'L.h i1'~'" hooAI1¥~ f.,.lr1-r1
f~h'L.h P'1r h-1'~i "P'Ir(JJ- t\.f(J)fO-- of the technical work plan, the financial
f(}i1'r1 f111H1 ooffl1 he; f hooAI1~1' proposal, and the technical competencyof
l1:J>r 19"UJlJO 'n(JJ-m.1: OOlPl r the applicants~
.,.A"t(JJ- 1 .e(J)(}e;A: :

1/ tr"r (J).e9" hllf n~.e hooAI1¥f nh1~

n;r ~.e fL:J>~ tPJooAh~pJ~r(JJ-1 nh1~
'l.t1. ""t'L.iI~~ he; "hAA L:J>~ ~ 2/ If two or more applicants submit applicationsto
q"p'AIfI1 h-1'CnlJ)- hrf"1 tJt'L.il~~e; the Ministry and the licensing authority of a
f"too"h+(JJ- fhAA L:J>~ (}{;I;). state for licenses covering the same area, the
q"p'AIfI1 tPJooAh~pJ~1 f"t1oofS}9" Ministry and the concerned state licensing
f jlr f~h'L.h i1'~1 f*~h- i f~h'L.h authority shall appoint a joint technical team to
i1'~'" hooAI1¥~ f.,.li1'r1 f~h'L.h P'1r evaluate the applications and the priority shall
h-1'~ i "P'Ir(JJ- t\.f(J)fO- f(}r1-r1 f1'H111 be determined on the basis of the evaluation of
ooffl1e; . f hooAI1¥~1 l1:J>r 19"fS}lJO the technical work plan, the financial proposal,
n(JJ-m.1: oo(}l r.,.A"t(JJ- 1 .e(J)iI.e;A:: and the technical competencyof the applicants.

rl o.r hooAlJT lJftTCJ'OtttJ h1cf>1\1D-il

h1cf>1\ (Ii) m~~ (I) oolPl..r 3/ A woman applicant, if any, shall have
ri'I1~~~ re7J~1OTJ ~m.r hh-A hlf'1 priority provided that the results of the
:tf:OfJ.f ~'i&.;rA:: evaluation conducted pursuant to sub-
article (1) or (2) of this Article are equal.

gl rlltJ h 1cf>1\1D-il h 1cf>1\(Ii): (-I) hCJ' 4/ Notwithstanding the provisions of sub-

(r) f:1':YlfllT fl'i?~ hil&A1. If'i articles (1), (2) and (3) of this. Article, the
lL1~ /"~f: Olilil.~ l1ftP'A1Il1 Licensing Authority may, where it deems
OTJooAh:f rcf>1..00r1 P'fJ:&. Q;11..;r appropriate, disregard the applications and
fLfmiTIOr ~TI\A:: opt for bidding for the area in question.
10
~~. T~ T ftOTJi\m:t 14. Notification of Interested Parties
~I /,.~ f: Olilil.~ l1ft/»A1Il1 OIlU hP1: 1/ The Licensing Authority shall, after
oolPl..r rcf>1..0ftr1 OTJooAh:f hootl10 registering the application, publicise it to
01.1\ l' f4: rcf>1..00r1 n;r rJt~e7J&.k third parties through widely accessible
n~Cf:'1.r Ooo1'cf>iI Ok i'~&.1i'1r mass media.
111\T~ roo1CJ'?/- -fUP/1 hOTJlJ~'1r
Y"ili'?/-m1'iT h1-'lf~chr . .
f~C;Jl\::
II /,.~ f: h1~~O1' . rOfJ.~m~ O~ OIlU 2/ If any person objects to the granting of the
h1cf>1\ 1D-il h1cf>1\. (Ii) oolPl..r license within seven days from the date of
h1-'l;rm:t 0i'~1..1 nOl1r cf>CJ'r~il1' publicity under sub-article -(1) of this
rcf>l..O h1~1f'1 /"~f: O~C& . Article, the Licensing Authority shall
l1ftP'A1Il1 i'~~qo~1 ftoofJ:;rr initiate negotiations between the concerned
h 1-'l:fA .,..~~ OOfJ.oofth;rT~ m1'iT
parties to resolve the objection.
oolJhA f:Cf:C h1-'l:looC f~C;JA::
rl .,..~~ rOfJ.oofth;rT~ m1'iT rcf>1..0~1
i' ~arqo O~Cf:C oo~;rr lJA:ftr 3/ If the parties fail to resolve the objection,
/,.:Pf: Olilil.~ l1ftP'A1Il1 rrrftrh1~ the Licensing Authority shall hear the
m1'iT tlCtiC lJ~oom 01.1\ rcf>1..0~1 presentations of both parties and decide on
i' ~~qo Ooocf>OA m~~ l1ftoocf>OA the upholding or rejection of the objection
OIt r P'&. cf>CJ'r ~il1' ~i\'1. within 15 working days.
~OlllA: :
1~ ~itrfj~ y.6-&\ '1?6:r- ?Jl.tIJ -ll'l'C ~~ d1VOfb t;;t +'t !iU 'U" Federal Negarit Gazeta No. 45 4'hAugust, 2010 page 5398

Il;. ftl\&.~4»P.:t!L.fOP~t_Jl.t-~ OP111:.O 15. Recistry of Licenses and Leases

~/ &.:P~ fI~lD- 111\pAflI1 f0lJ6~1 11 The Licensing Authority shall establish

&.:Pfl.."f'1 fOP/"'T 1Lt-~ OPl1'111 and maintain a registry of licenses and
Y*~OIJA: ~~tJA: : leases.
f/ OPl1'1ft- &.:P~ h 1-'lflfll:flD- Y OPl\h1:'1 2/ The registry shall contain details of all
f+ootI'1ft-T1 o~~ h'1 &.:P~ registered applications for licenses and all
+fl1';t::flD- ro~9" +hAhl\lD- hlf~ details of their granting or refusal, and any
~U1~ l1Cl1C h1-'ltJ.9" h"?l11111l\:flD-
ftLU hCP'!: ~1;J'lJU"f: O~111'1 OOP
other particulars as may be required by the
relevant provisions of this Proclamation,
ODt,Y fi'OPl\h1: l1Cl1C'"f1 ~~tJA::
regulation and directive.

r/ lP/Y;:lD-9"&.:P~: fOP/"'T h.t-~ lD-A 3/ Every license, lease and instrument under
h'1 0IJ~c&9" h1-'lU YI\ OP11T which mining right is transferred, assigned,
f+l\I\&.OT: f+~1.'10T: f++roOT: surrendered,.suspended, revoked, encumb-
f ;t-'1~OT: f+fll.tlOT: 06~ f+ f ered,inheritedorotherwiseuearedshallbe
tlOT: OlD-Ci'lf+l\I\&.OT ro~9" OM registered in the registry. Each instrument
tJ.'b;t- f+h'1ro'10T fI'1~ OPOPl1'111 relating to such riglits must be presented
hI\OT:: hh 1-'lU fl\ OP11T ;JC for registration within 90 days after the
f+YYtI 0IJ1~lD-9" fI'1~OTtI;J~ OJ date thereof or it shall otherwise be null
~'1T lD-i'l1' ~cn 2]A+OPtI'10 Ofh"? and void.
IvT CP;J h~«f 1.lD-9"::

4/ The registry shall be open to the public for

!i/ OPl1'1ft-1 I\OPOPAhT h1-'l~A I\fhl111
inspection.
h~T ~1f'1A::
5/ A copy of every insITuffientrequired to be
l;/ &.:P~ fI~lD- 111\P'AflI1 tl1~ l\9"tI'1l1
fOt ~C11 OIJWc&9" fI'1~ ~;4t fO'/.ool\ filed with the Licensing Authority for
h+C&1 p~t- I\OPl\fT h1~A registration, together with the map or other
+f~Jf hOt~C11 I-)c;t-'1 1\.1\ Tl\1 ;JC plan necessary for identification of the area
h"?l111 111\lD- fh"? OOlPl.T OP1"?PT concerned, shall be filed with the register
OOt~tllD- fOlJ ~ 1~"~(}' 1111..y."f of immovable property of the government
OPl1'111 l\~ 000011'111 hI\OT:: pursuant to the applicable laws.

)1~A Y'£rl: PART THREE

~ LICENSES
II. f:"~T
16. grantin2 Reconnaissance License

I\CP~T &.:P~ f~lOlD- f Pt- TC'"?t-9" The Licensing Authority shall grant a non-
exclusive reconnaissance license where the
oOP/"'T '1'1\;t- l\~ '}c~T It.Y~Ci'l fO'/."fA
f;4t~fto~ Pt- ffbl\lD- hlf'1: L:P~ work program does not involve any geological
fI~C& 111\pAflI1 f11~ flf'1 OP11T work that would result in the disturbance of the
fOlJYi'l'1~ L:P~ ooi'lffiT hI\OT:: surface of the earth.

,
Ii. f:"~T ~ 61.,. 1\ ., OT 17. Duration of Reconnaissance License

~/ f:"~T &.:P~ O~~ l\~ 1\+'1I\?lD- 11 A reconnaissance license shall be valid for
'Lit 61.y. ~., YA! 1f«f9" ~U 'Lit. the period specified. in the license~
hhi'lt- i'l9"1T rot-T Ol\~ It.1f1 provided however, that such period shall
h~"fA9":: not exceed 18 months.
11'i' gj'tfr'iiJ /...Yvt-A'1?t-r ?tl.fIl ~'f'C !1g th9"h. ?f~ .,., fi'i.!l ~.9" Federal Negarit Gazeta No. 45 4thAugust, 2010... page 5399

fl/ ~~~r &.JP~ /t;r~{) n~"fAcr:: 2/ A reconnaissance license shall not be

renewable.
I~. 18. Grantin2 Exploration License
~&.JP~ o6tl.or llf\P'AlfI1 ~£11l.h1-~r
y.~;rPJ"f h1-OXtr ~11~ ~If~ ool1r
~£11l.Y{)?~ ~OT/6~1 crCoo? &.JP~ 1/ The Licensing Authority shall grant an
~OlflA: - exclusive exploration license where:

V) nooAl1:t:. ~;ronor1 .~OT/6~1 a) the applicant has demonstrated that it

crCoo? P'? n4>lnor ~P'? has acquired or has access to the
1

TC'UJ?cr ooOlr f\dlJhe;m1 , financial resources and the technical

~£11l.Y{)"fA ~?1Hl1 n~9"e; ability to conduct the proposed
n{)&'''1.or ~i:h'th "ffto;r Yf\or exploration operation in accordance
m~cr f\OT/UJ7r ~£11l."fA001f.,.1 with the work programine;
l1l;J?m !
fa) ~1-?oo1-or ~OT/6~1 crCoo? b) the estimated exploration expenditure
P'? m6tl. n1-mo~or 1f~1-~ is in accordance with the prescribed
rcrcoo? m6tl. 'he; ncrcoo? minimum exploration expenditure and
p'? TC'UJ?oo- ooolr hlf~! the exploration work program;
c) the environmental impact plan is
dt) ~nl111{t 1-)toCf UJcr?OT/or 1-4>11
~~r 1117! 'he;
approved; and
d) the applicant is not in breach of any
00) nooAl1:t: ~~~r &.JP~ ~~nlor
hlf~ ~tlU'r &.JP~ UJ~;rPJ"f obligation of his reconnaissance
l1AlfIO:: license, if any.

fl/ ~&.JP~ o6tl.or llf\P'AlfI1 ~~Coo? 2/ Where the Licensing Authority refuses to
&.JP~ f\nooAl1:t: ~OT/~omor hlf~ grant an exploration license, it shall notify,
~111'r orl\~ n)t~~ h~crh1Yrf: in writing, the applicant of the decision and
f\nooA 11:t: yl\or4>CPA: : the reasons thereof.

Ii. ~OT/6f:1 SJD oot,. &. f: fJ1.y. 19. Duration of EX.I!lorationLicense and Renewal
~e; 'hf:l\i: .

~/ ~OT/6~1 crcoo? &.JP~ n&.JP~ ,,~ 1/ An exploration license shall be valid for an
f\1-?f\~or 11t fJ1+ ~~ YA! IfCf~. ~U initial period specified in the license;
1.It hy.'{)r o,oor n"~ /tlf1 provided however, that such period shall
n~"fAcr:: not exceed three years.
'-I frcon?OJ- &..:J>~
hrM1~ hn1~ ~onT 2/ An exploration license may be renewed
taOlJ.eOI>\'f' 1.t1. tau-taT 1.t1. tL~ ~()
twice for a period not exceeding one year
.ei-I\I>\:: llta&..:J>~ <f>~r ltl>\ h<f>lOor fit?
TC'dJ?r -tlXbOlJ& frCon? -tdJllC each. The Licensing Authority may further
OIJhc;oJ'} h 1~OIJ..fl1&..l>\dJ I1l.?1ffl &..:J>
~ allow extension of renewal to be made on
(\(J;l. or lltaP-' 1>\flJ ') 0 h.f "}~ "}~ ~ onT each year where the licensee proves the
r«t;r Yoit TbIJ. D?t " .(-It-r tL&..:"~ .ei- necessity to undertake exploration activity
. 1\1>\::11'~~ .eU 10ft hh~{)-r '}OD-r O".e beyond the initial work programme.
t\.l1',,}h.e"fA~H Provided however, that such period shall i

not exceed five years.

EI llf\&.JP~ n&.JP~ ~1-oofth1:'r1
UJ~;r PJ:t:1 nOXA.,. h&.fJoo: f\6~l\r 3/ The licensee shall have the right to renew the
~£11l.m~
<h 1-&."1. y.~;r PJ"f1 l1OX" 'he; license provided that he has fulfilled the
~tlU1 nCP~ '(-1;J~PJ"f m~cr ~1n"f1 obligations specifiedin the license,meets all the
(JJ~9" ODootYPJ"f1 noo1-"f\~ &.JP~1 requirements in connection with the application
f\OT/?~ m~cr f\ooOl1f ~£11l.ynJP'f4.r for the renewal and is not in breach of any
l1A&.~oo n{)+4>C &.JP~1 ~OT/l\~{) provision of this Proclamation, regulations or
ool1r ~CflCPA:: directives which constitute grounds for
suspensionor revocation of the license.
1?i' ~ifjlf ~Y..&-t\ '1?67- ?fl.fIJ ~1'C ~~ dt9"f\.?;~ +, Ii'i.!l 'i.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5400

s.
~1:,} ~Coo&- qfaL..cJ»'(- oo1.lT«J e6J~:J' I 20. Rig:hts and Oblig:ations of the Holder of an
2!:f. Exploration License

iil hdJClll f"rlD- rtltJ h1'1: lbfto"f 1:1;J- 1/ Without prejudice to the appropriat
~?'"f h1~Tmn<k U'~(J}-:r"70~1 VOCoot- provisions of this Proclamation, the holder
ClI\~.4>
~ rDll.hT{)-r ooll-f"f. ~Cfc;.:rA: - of an exploration license shall have the
rights to:
V) .etl roo~r-r &...cJ».(-h1-'tOm£&
rOlJooAh-r«J rOlJe6J7-rool1-r 1, a) apply for and be granteda retention
license;
1\) n"7o1:~CJ hVOCoot- ~.4>P,.tlAA ;JC
nT f f" r"7VOl r
~.4>1: l\"7dJ1r b) apply for and be granted a nnnmg
r"7ooAhrCJ ~.4>1: r"7dJ1r oollr I license;
m) ne}>
1:DIl.f hL.4>1: "'(;I;1.lD-ClI\P"A"11 c) remove and transport minerals or bulk
rK'dt-tt: ilVOVO~r O"7dJ1r VOCoot-i
oo-ht-CJ r1TCJ 1\"7~ldJ hil~"1. samples fOWld during the course of
nU'~lD- oom1 "7CJr(J)o~ r"70~1 exploration in such quantities as may be
'100-'1 1\"7lD-"1rCJ 1\"7=i=i1lI U'CfVO required to conduct tests or other analysis
"701:'11; roo,}dJp"r '}-fIlr U'~(J)o with the prior written permission of the
~.y. f {)-I f 1\~.4>~ "'(;1;1.lD- ClI\P" A"11 Licensing Authority; provided however
~.4>1: h~1im-VO:: that, such minerals shall remain the
property of government and the licensee
may not sell them without the prior written
II h.,CJlI f"rlD- rtltJ h1'1: ibfto"f approval of the LicensingAuthority.
~1;J~?'"f h1~Tmn<k U'~lD-i r"7o~'}
VOCoot- ClI\~.4>~ rOlJ.hT{)-r dJ~:r?'"f 21 Without prejudice to the appropriat
. ~Cfc;.n:rA:- provisions of this Proclamation, the holder
of an exploration license shall have the
V) rOlJ(J.(-'} ~Coot- &...cJ»~+&"01/. obligations to:
hlf~O-r ~1 19"~ O~ "'«J-r £&l'I1'
r~coot- p't-£&1 roolooC 1 a) commence with exploration activities
within 60 days from the date on which
the exploration license becomes
fa) r~coot- &...cJ»~
1 l'I~~~.y. T«J effective;
e6J
~7' f1lT rOlJnOC 1
b) comply with the terms and conditions
of the license;
th) ~Coot-: uu.ht-«J -r1+e; faOlJY:le6J
.r lDtTVf£&«J .r:j:jtJT£& OIJ(JY:«J-r1 c) keep duplicates of samples removed
«Juu.«J ~Jtf1lT rOlJl'I~oo1':: and tran~po..!1ed
for tests or any other
analysis.
tNi. f P&- T~e6J&-~ l'IfaoofalD1: 21. Variation of Work Pr02l"aJD

~/ r9"Coot- qfa&...cJ».(- +~q.e~-r he6J~.y. 1/ The holder of"1mexploration license may at

r~Ol£&1 r PIr T~DJt-9" fJ01]e;:f£&9" any time apply to vary the approved work
"l.tI. faoofam1' OIJooAh-r .e"fItA:: program.
I '
.
f/ 0IJ1~£&~ rP't- T~DJt-9" fa£&1' 2/ Any application for variation shall:
faOlJY:le6Jr01J.~Cl1 OIJooAh~:.
V) +~q.e~-r ne6J~.y.r~Ol£&1 r P'? a) demonstrate the events that prevent the
T~e6Jt-~ ftoo+DJOC .r1t{}~ta--r1 licensee from carrying out the
rr~7'f1lT OIJl\r-r: he; . approved work program; and
fa) r 7'00£&1 r P't- T~DJt-9" 0IJ?i?i.r b) be accompanied with t,he intended
oo.rll : amendments of the work program. .
nfaO-r::
1~ £nN~ t...Y..&-A.,?~ ?If.fIJ ~1'C !1!; th9"h. l!~ +1 litf 'i.S'" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5401

rI &.:Pf: f'16IJ.m- llftP'AiIl1 f P' t- 3/ The Licensing Authority shall, after

TC'OJt-SJD ftm-'1' ftOTJf:lt7J f4>lOft'r1 examining the application for variation:
'1'fef: huuluul 0:11\:-
V) 1'?i7ifto f4>lOm-1 f pit- TC't7Jt-SJD a) approve the variation if it finds it
h1'4>Ot\ f~f:4>PA I tD~SJD acceptable~or
ft) ftm-'1' ftOTJf: l t7J f 4>lOm- 1 '1',ref: b) if it rejects the application, it shall
m-f:~ 2-J~l1m- ftm-" 'l.m- SJDh 1 fr notify, in writing, the applicant the
rlf'rr1 ~~r-:f OuutlCtlC fthoD- reasons for refusal.
A2-J~ mr ffi.~ f"m-4>PA::
tifl. ,h&.:Pf: tlAA I\.e rTml\.,m-1JtftuuA"tt 22. Relinquishment of Portion of License Area
~I fSJDCuut- J..:Pf: h1-'l:t'~ilftr f01J.m 1/ In applying for each renewal of an
~~ llft&.:pf: Ohf1~1~ tJf:"r m~r exploration license, the licensee shall
O&.:P~ I\~ h1'uufth1'm- fuu~r hAA indicate the portion of the license area, to
h~11 h~ rOTJf1f'1m-1 P'~t,. r01J.ft~ be relinquished which shall no~be less than
uulf'r1 OTJuuAhr hftOr:: one fourth of the license area.
II f01J.ft4>ch P'~t-fU:f ~C~: h4>OTJuu- 2/ The form, orientation and other details
'1''1 I\,fto:f lIC1fC rr'l.:t'fU:f Ouuuut,r regarding relinquishment shall be specified
~mf'1'Jft.: : by directive.
tire f uu~fr ~ f: ftuu mT 23. Grantin2 Retention License
~I &.:Pf: f'16IJ.m- llftP'AlTJ1 r01J.h1'ft.r 1/ The Licensing Authority shall grant an
.r'l.:t'fU:f h1'OJ.ft. fthuuA2-J~ f11T~ exclusive retention license to the applicant
uu11T f01J.f'1'1' ~t1 r uu~fr &.:Pf: where:
~iliIlA: -
a) the applicant has demonstrated that the
V) llft&.:p~ OSJDCuut,. &.:pf: hAft.
m-il'1' hP6IJ. flf., fOTJtJf:1 discovery of a mineral deposit within
hSJD:fr OTJt7J"'i1:1
fill~ (Uf1 I h'J the exploration area which is
potentially of commercial signific-
ance~and
ft) fOTJtJf:'r h~:fr ft'l.tbm- llft.r b) the mineral deposit cannot be
uuA2-JSJDfAlf'r . f10f lJ-'l.:t'fU:f developed immediately because of
m~SJD I\,fto:f ~t1'i"01J.f'l! lJ-'l.:t'fU:f adverse market conditions, other
m~SJD ft'l.tbm- OTJtJf:.,.1 ftOTJOA~t7J
economic factors, or unavailable
ftrt fil:f A 1:h'i"fto~ - hftuu'i"C
SJDh1fr m-'lfm-'r fLftOTJfOTJ~:fA processing technologies, which are of
hlf.,: : a temporary character.

fll &.:Pf: f'16IJ.m- llftP' Aill 1 001J.h1'ft.r 2/ The Licensing Authority may refuse to
.r'l.;rJPi- ~t1 fuu~fr &.:pf:1 fLhft grant a retention license if it fs established
that:
hA ~:fI\A:.
V) hil&.I\'l. flf"m- fOTJOA~'l.f i:h'i" a) the required processing technology is
fto~ fl1'J fOTJtJf:1 hSJD:frf:Ohrt- available and the mineral deposit can
/u"r tLuulr f01J.:fA (Llf11 be mined profitably~
ft) uuA2-JSJD~hhC1 f01J.ft7Jf: (Llf1 I b) it may prevent fair competition~or
m~SJD
c) it may result in the concentration of
dt) fOTJtJf:1 V11r OhuuA2-J:t: ch'1''1'C mineral resources in the hands of the
P'C h 1-'lf'111f'111
f01J.f~Ct7J (Llf1:: applicant.
3/ Where the Licensing Authority refuse to
rl &.:Pf: f'16IJ.m-llftP'AiIl1 ~t1 fuu~fr grant a retention license, it shall notify, in
&.:P~1 fthuuA2-J~ fOTJ~omm- hlf., writing, the applicant of the decision and
~U1'r m-"'l. O~ffi.~ h.,SJDh1f1: the reasons for refusal.
fthuuA2-J:t:f"m-4>PA::
'l~ j;itlifll J.."-1r1A~?t-r ?H.iT/<IITC!1l; J.",tt. t;~ 4>1 ~i'i.i q.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5402

l!!i. f oo~f~ L 1: 001'i h1:"~ 24. Duration and Renewal of Retention License
~I ,etl foo~f~ LfP1: O&.~~ ",e 1/ A retention license shall be valid for the
f\-t'1f\~lD- 'Lit fJ1.y. ,e~ flA! lflf~ ,etJ period specified in the license, ho~ever,
'Ltt. h(l{)~ l}oo~ O",e fLlf1 that such period shall not exceed three
n,e'f/;\~:: .
years.
II OtttJ nep'f: n1~?\ l!r 1cr{) n1~?\ (li) 2/ The retention license may be renewed once
",e f-toof\h1:~ v.~:r?J'f f~mfr for a period not exceeding three years
00(f'irro-1 flf\LfP~ l1{)l~ LfP~. where the licensee demonstrates that the
hyJ{)~ nUD~ f\O'j,eOt.\1' 'Lit n1~
conditions specified under sub-article (1)
,e:r~t'\IA: : of Article 23 of. this Proclamation still
prevails.
l!t. foo~f~ flf\ 1: 0011~'i e7J
fo 'f 25. Ri2hts and Obli2ations of the Holder of
Retention License
fll ftltJ n1~?\ 1cr{) n1~?\ (I) 1:1;1'1 1/ The holder of a retention license shall,
h1~-tmO~ lflf ,etl foo~r~ flf\LfP1: subject to sub-article (2) of this Article,
f LfP 1: "oo'r hO'jf\~ flk~ O,etl have the right to be granted a mining
oo~f~ LfP~ oolPl7o f-t f"lD-1 license, in respect of the retention area and
nlAlA he; 0'j61:1 O-tuof\h-t rO'j6~1
mineral in question prior to expiry of the
~

O'j~l~ LfP~ fO'je7J1~ 0011~ license.

,elf leplA::
2/ The holder of a retention license shall
II ,etl foo~f~ flf\LfP~:-
submit an annual progress report to the
Licensing Authority indicating:
V) ffr~1 f'10,re; fi;n'l.n v.~:r?J'fe; a) the prevailing market conditions and
lD-m.:rrlD-1 h 1-'lrr~ . Oi'oof\h- technical factors, the effect thereof and
-tlD- 0'j6~1e; oo~7o ",e ,etl the need to hold such retention license
foo~rr LfP~ fJ1.y. h1-'l~,e over the mineral and land in question~
f~,r{)LIAOJO~1 ~n1,r~1 he; and
f\) fLfP~ "001 hoome;~~ Ok~ fO'j b) efforts undertaken by it to ensure that
61:1 O'j~l~ P6-lD-1 f\oo"!.ooC
mining operations commence before
OO'j1:lOJ ",e ,rf\lD-1 1'l7o=
expiry of the duration of the license.
f~,rt'\,e l}oo:rlf! tTC~ f\LfP1:
O~lD- flf\P/;\tTl1 OtJ~l11 hf\Or::
l!~. fh~~ ~l:q ft17lJ1:1 fO'j~l~ P6-
26. Grantin2 Lal1!e Scale Minin2 License
LfP 1: ()f\oo{)mt

fll LfP ~ O~lD- flf\plAfIl1 f~h-tfr+ 1/ The Licensing Authority .shall grant an
v.~:r?J'f h-tOXfr fll:f flf~ 001l~ exclusive large scale mining license to an
r~,r{)'1~ fh~-t~ ~l;q. rO'j6~1 applicant where:
O'j~l+ LfP1: f\noolAl1~ .eOiTIt.\:-
a) the proposed work program is
V) f~lOlD- f P6- 6~f: -t~q,e~~ approved~
11'11!
b) the applicant has access to financial
f\) noolAl1:P \':roOlD-1 \,Uj~lr P6- resourcesand technicalabilityto conduct
o,,~ ~l;qe; ~tJ1'11: O-tmO~ rr~:r the proposedminingoperationsoptimally
f\O'jhe;m1 f~,r{)'f1A \''11"11 and in a safemanner;
~1~e; \''tn'l.n 'ffto:r ff\{]p
m,e~ f\O'j0J1r r~ 'f1A oolf~1
I1l:nm !
c) the environmental impact assessment
d1) fnl1f1ft -t061f UJ~'1O'jlD- -t~fI,e has been approved~and
'1~ 11'11! he;
1~ ?;itgfE &..1.&.A"?~-r ,?tI."l <IITC..,?; thrfl. tt;t .,., Ii'i.!l 'HI" Federal Negarit Gazeta No. 45 4b August, 2010 page 5403'

ov) hovAI1~ r~cov~ 6.fP~ r~Olm- d) the applicant is not in contravention of

hlf~ rttu'r UJ~;r YAlIlo Ifc;" any obligations of the exploration
hi'17: : license, if any.
g/r6.fP~ OlXl.or Clt\.P'Affl1 rOTJ~lT 2/ If the Licensing Authority refuses to grant
6.fP~ rOTJ,eo£f' hlf~ ,eU1'r O~~~ a mining license, it shall notify, in writing,
h~~n1Y-I: t\hovAI1~ Yl\m-4''PA:: the applicant of the decision and the
reasons for refusal.
.
li'Z.' r ~i'~ ~l.:q rD7tJ1:1D7~l.T 6. 1: 27. Duration of Lar2e scale Minin2 License and
? 1.y. t\ f OT e; tJ1:l\T Renewal
/~7 rh~i'~ ~l:4 rOTJtJ1:1OTJ~lT 6.fP~ 1/ A large scale mining license shall be valid
06.fr~ I\,e t\i'1t\?or 'Lit fJ1.y. for the period specified in the license;
,efYA I Ifc;"~ ,eU 'Lit hli' l}ovT provided however, that such period shall
Ol\,e fLlf'} h,e"fA~:: not exceed 20 years.
g/ rh~i'~ .e.l:4 rOTJtJ~1 OTJ~lT 6.fP~ 2/ A large scale mining license may be
ottu h 14'~ 1(}tI h 14'~ (r) . renewed for a period not exceeding 10
ri'~~11or h1~i'm04' Ifc;" OhY1~1~ years each subject to sub-amcle (3) of this
h~l\T (JJ~T hI l}ovT t\OTJ,eOA£f' Article.
'Lit h1ItY1t\UJA fL;r.e.tI ,e"fI\A::
3/ The licensee shall have the right to renew
r/ Clt\6.fP~ n~"f-h1 hJIc;"OTJ.YceOlf~ the license provided that he can
~l:4 D7~l.T ov4'mA rOTJ."fA ovlf'r,) demonstrate the continued economic
l1l\r= 06.fP~ ri'OVt\h-l:T1 UJ~;rfD- viability of mining the deposit, has fulfilled
~1 h~A.y. h6.fJov he; rttu1 h'P'!: the obligations specified in the license, and
~1 ;J~p1"f (JJ,e~ .e.1n"f1 (JJ,e~ is not in breach of any provision of this
ovovtYfD"f1 Oovi'I\t\~ 6.fP~ 1 Proclamation, regulations or directives
t\D71~ (JJ,e~ t\ovol1f rOTJ.YOfP£f'4.T which constitute grounds for suspension or
I1A&:.?ov Otli'4'C 6.fP~ 1 rOTJl\~tI revocation of the license.
OVl1T ,ec;"l'PA::

li'~. f h .,i):t~ ~l. 28. Grantin2 Small Scale Minin2 License

/"fP1: Q.Oovitmt
~/ /,.fP~ olXl.or Clt\.P'A1Il1 rOTJ.hi'(t.T 1/ The Licensing Authority shall grant an
lP'1.;rfD"f hi'~(t. r11:r rlf~ OV11T exclusive small scale mining license to an
rOTJ.
Yti1"1 rh~tli'~ ~l:q rOTJtJ~1 applicant where:
OTJ~lT /"fP~ t\hovAI1~ ,eolllA:.
V) r4'lOor r.P'~ tJ~~ i'4'Cl,e~T a) the proposed work program is
1117!
approved;
t\) hovAI1~ r;roOor1 rOTJ~lT .P'~ b) the applicant has access to financial
01\4' .e.l:4e; .e.U1~-I: Oi'm04' V-'1.;r
resources and teclurical ability to
t\OTJhe;(JJ1 rOTJ.YtI"fA r111111
~16J}>e; rrtn'z.n "f~;r Yt\m- conduct the proposed mining
(JJ,e~ t\OTJUJ7T rOTJ."fA ovlf'r1 operations optimally and in a safe
I1l;J1m I manner;
ch) rhl1Cln. i'otJc;" UJ~1OTJor +4'Cl,e c) the environmental impact assessment
~T 1117I he; has been approved; and
ov) hovAI1~ r~cov~ 6.fP~ r~Olm- d) the applicant is not in contravention of
hlf~ rttu'r UJ~;r YAlIlo Ifc;" any obligations of the exploration
hi'1}: : license, if any.
g/ r6.fP~ olXl.or Clt\.P'A1Il1 rOTJ~lT 2/ If the Licensing Authority refuses to grant
/,.fP~ rOTJ
,eo£f' hlf~ ,eU1'r O~~~ a mining license, it shall notify, in writing,
h~~n1Y-I: t\hovAI1~ Yl\m-4''PA:: the applicant of the decision and the
reasons for refusal. I
'l~ ~x iiVii ~y.6-t:\ '1?t-r ?H.fIl <IITC~g th9"fb ti~ +1 Ii'll 'U" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5404

tty. f '1 +;;: ~l;q f"'1IJ1:1 "'1IJDl:" ~~1: )\1.,. 29. Duration and Renewal of Small Scale Minin2
/\ cf n Cj IJ1:" License
~/ fh'u")+;;: ~l:q f"'1tJ1:1 "'1crlr &.~1: 1/ A small scale mining license shall be valid
O&.~~ ,,~ /\+1/\)\(& 'Ui. 01.,. for the period specified in the license~
~cfflu lfCjIJD~tJ 'L1i.hI t}oo:" n"~ provided however, that such period shall
IlI!1 h~"fAIJD:: not exceed 10 years.
~/ fh'1i1+;;: ~l:q f"'1tJ1:1 "'1crlr &.}PY: 2/ A small scale mining license may be
ftLU h 14>7\ 1eJ.i1 h 14>1\ (r) 1:1;J~ renewed for a period not exceeding five
h1~+mn4> lfCj nhf1~'~ h1:"r years each subjectto sub-article(3) of this
OJ~:" hhIJDi1:" t}00:" /\"'1~nA l' 'LIi. Article.
h1/{.f1/\UJA h.:J'~i1 ~"f"A::
3/The licensee shall have the right to renew
r/ q/\&.~~ hcr"fi:1 hcpCjOtY'l! nlf'1 the license provided that he can
~l:q "'1IJD lr oo4>mA fOt"fA 00V'~1 demonstrate the continued economic
tJ"f: n~~~ f+00/\hi::"1 UJ~:J'
viability of mining the deposit, has fulfilled
JD:t:1 h~A'" h&'Ooo hCj flltJ1 hCP1:
the obligations specified in the license, and
1:1 ;J~JD"f OJ~IJD ~ 1n"f1 OJ~cr
0000tfJD"f1 Ooo+"/\~ &.~~ 1 is not in breach of any provision of this
/\"'111: (J)~IJD/\ooOlll fOtfO~ 1'4.r Proclaination, regulations or directives
tJA&.)\oo Oi1+4>C &.~~ 1 f"'1l\~i1 which constitute grounds for suspension or
oo-nr ~CjlCPA:: revocation of the license.

0. Ri2hts and Obli2ations of Holders of Small

and Lar2e Scale Minin2 Licenses

~/ fh'1i1+;;: OJ~IJDfh~+~ ~l:q f"'1tJ1:1 1/ The holder of a small scale or large scale
"'1IJDl:" q/\&.~1: fool:J'TOJ-1 mining l~~nse shall have the rights to
"'1tJ1:Cj:" /\10f f"'1i1+CPOJ~Cjfooo1' marketand sellmineralsproduced.
oo-n:" ~CjlCPA:.
~/ fh'1i1+~ OJ~IJDfh~+~ ~l:q f"'1tJ1:1 2/ The holder of a small scale or large scale
"'1IJD
l:" q/\&.~ 1::- mining license shall:
lJ) ~~~ +&,'Ot hlf'10:" 4>1 ~crC' a) commence mining operations within
Oh11: hOOT £&i11' fcrCr one year from the date on which the
P't-£&1 oo~ooC: he; license becomes effective~and
/\) f~~~ 1 i1crcr'1"'"fe; UJ~:J'JD"f b) comply with the terms and conditions
"'1hOC: of the license.
h/\OT::

31. Variation of Work Program

0/i. f P't- TC'"?t-IJD i1/\oo/\oYC.

1/ The holder of a small scale or large scale

~/ fh'1i1+~ OJ~cr fh~+~ ~l:q f"'1tJ1:1
"'1IJDlT q/\&.~1: +4>q~'1:" hUJ~'" mining license may at any time apply to
f'10l£&1 f P't- TC'UJ&-cr O"'1e;T£&cr varythe approvedworkprogram.
'L1i. /\oo"OJ1' "'1ooAhT ~"f"A::
~/ "'11~£&cr f P't- TC'UJt-cr "£&1' 2/ Any application for variation shall:
""'11:lUJ fOt4>C-nOYooAh~:-
lJ) +4>q~'1T hUJ~'" f'10l£&1 f P't- a) demonstrate the events that prevent the
TC'UJt-cr "oo+UJOC Y"i1~t\-r1 licensee from carrying out the
tr'1.:J'JD"f"'1l\fr: he; approved work program~and
 /
/
1)\, ?;1tgf~ t..~&-A '1.?~-r .?lI.fIJ<IITC!j?; Ih"'''' 1ft .,., ~i'i.1 'J.9" Federal Negarit Gazeta No. 45 4th August, 2010..., page 5405

fl) f ;t"OO~1 f pI,. T CJC11,.?"O"I/i'ii'if b) be accompanied with the intended

00 f1f : amendments of the work program.
hflOr::

rl &.1P~ o~~ ClflPAiTl1 f pI,. 31 The Licensing Authority shall, after

T~OjI,.9" fl~'1' flO"l/~lOjf4>lOflr1 examining the application for variation:
'1'Y4: hoolool 0:11t:-
a) approve the variation if it finds it
V) 1-i'i7ifto f4>lO~1 f P I,. T~OjI,.?"2' acceptable~or
h1-4>OflY?-~ctCPA!OJ~9"
b) if it rejects the applicat,ion, it shall
fl) fl~'1' flO"l/~lOj f4>lO~1 '1'f4: notify, in writing, the applicant the
~~~ J-a~l1~ flON'\'l.l& ?"h1fr reasons for refusal.
flf.-rr1 ~~f'T OootlCtlC flhooA
J-a~ (J~ ~lJ: YI\~4>CPA::
32. Artisanal Mining License
~I. O"I/lJ~1 tIII?"!.r &.1P~

/il &.1P~ o~~ ClflPAlTI1 O"I/ooAh~ 1/ The Licensing Authority shall grant an
(Lcf>C11flr hooAJ-a~ fl&.1P~ 11~ exclusive artisanal mining license where
001f-r1 hl:JOj(T1 f11~ flf~ oo11r the applicant is eligible for such license.
f01f.Yi't1"1 fClfhlttf O"I/lJ~1 O"I/9"lr
&.1P~ flhooAJ-a~ ,eolTlA::
21 The holder of an artisanal mining license
gl fClUlttf OTJlJ~1O"I/?"lr Clfl&.1P~:. shall:

V) flClfhlttf tIIIlJ~1 O"I/?"lr pI,. a) be obliged to undertake the mining

OfhOJ 01-£DO~0>- f h J-aClft '1'01Pc; operations in accordance with the
fm.1~rc; f'(U1~r ~!.;qp1T environment, health and safety
oolPlr fooi'tl,.r Oj~;t" hflOr! standards prescribed for artisanal
mining in the relevant laws~
b) comply with the tenns and obligations
fl) f &.1P~1 i't?,,?,,~.y.Tc; OJ~;t"p1T of the license. . I

tIIIhOC hflOr::
31 An artisanal mining license shall be valid
rl fClfhlttf fO"l/lJ~1 O"I/?"lr &.1P1: for the period specified in the license~
0&.1P~ I\,e ft1-1fl?-~ Ii001 foe;
provided however, that such period shall
,elfc;A! Ifc;9" ,eU tl001 hY"i'tr
hoor h,eOA'1'?"::
not exceedthreeyears. .
gl &.1P~ hY"i'tr l}oor ftO"l/.eOA'1' 1Jb
41 The license may be renewedtwice for
~flr 'Lit IL;t".(i't ,eTItA:: three years each.

l";/ fh?"T1:1 h.,f1c;01f.Ylf hfl"1;t" 01-?ifl

51 The Licensing Authority may, after giving
~~;t" flO"l/Atlllr flt~ f?"Cool,.c; 90 days prior written notice, revoke an
fO"l/?"lr tI~p1T1 oom4>?" h1'(0fJ. artisanal mining license where it is
Yi't~A OJ (L;t"0010r &.1P~ O~~ considered that the deposit requires more
ClflPAlfI1 fj 4>c;r f~~lJ: 0"I/i'tm1 advanced exploration and mining method
4>~Y O~~01f.Y Oooi'tmr ClUlttf fO"l/lJ for the best development of its economic
~1 tIII?"lr pI,. &.1P~1 tLoC1f potential.
,eTI\A:: .
61 The Licensing Authority shall give
'kl Clfl&.1P~ &.1P~ O~~ ClflPAlTI1 preferential treatment to the licensee where
001f.£Di't~~ h!l:11 01t4> f?"Cool,.c; the latter shows that he has the necessary
f01J9"l r 1-OjClC I\,e floootlllI,.r technical and financial resources to engage
f01f.Yi't&.A1~ f1;h'1.h 111Prc; f11t111 in the advanced exploration and mining as
?"1~ h 1~fl~ flO"l/I\fr h~fl prescribed by the Licensing Authority.
,

f~~01f..r oo11r ,eomPA::

'I'" ~1fo~ 4J.&-1A '1?&-} ?n.nr cf41'C~?; m}..tt. S: .,., 1i'i.1 'U" Federal Negarit Gazeta No. 45 4thAugust, 2010,... page 5406

~I C1ft~.4»~ f~~Utf 0011-r f01J.e,()mc& 7/ Where preferential treatment is not accorded to

(L1f1 ~.4»~ ()6L'"ar C1ftpAflI1 h1~ the licensee,the LicensingAuthority shall at the
C1ft~.4»~ SJOC6l>1.h-'l{) O1JtJ~1 O1JiJOl:F option of the licensee grant him another area of
~.4»~ n;r m.eSJOO~.4»~ oo()lll SJOh1 mining operation or detemrine the amount of
f-r ft~l()O-r ~~-r fLh~ftar fUt'lC1 compensation which shall be paid to the
or1 fl1Uf oom1 .eCD()C;A::.eUSJOI1Uf licensee for the loss incUITed due to the
ftC1ft~.4»~ O+4.m'1 ~rt ar{)T .eh~ revocation of the license. Such compensation
ftCPA:: shall be paid to the licenseepromptly.

~. ~.4» p,."fhm.4»"~ 001J:f:.f 33. General Ri2hts of Licensees I

~I OtLu iiCP'/: fbfto"f ~1:J'l.fJJ"f f+ooft 11 In addition to the rights under other
hi:-r 0011.y."f h 1~+mOch If'1c& 01J'P'f provisions of this Proclamation, a licensee
arSJO C1ft~.4»~ h1~ '1'1<. hDJC111'1-rfUt shall, as appropriate, have the rights to:
h+lr-r hm.4»i\.e 0011.y."f .eCf<';rA:-
0) CD~ ~.4»~ hAA fooDJC1-rC; a) enter the license area and 'bring to that
f01JtJ~1 P&.fJJ;P1 ft01JI1~~ h{) license area any plant, machinery and
~i\1. flf'J. 4.11tl1fJJ"f1: OtJ7i'1t equipment, and build and construct
fJJ"f1C; 00l\tffJJ"f1 i'01J{)'IC1-r: any surface or underground
hoo~-r Oi\.e CD.eSJOOoot,-r PC infrastructure required for the
fUt"l~ no{)l+ A01J.y."f1
purposes of his mining operations~
f oo"C:J-rC; f 00'l1C1-r!
ft) hDJC111'1-rC1i\Tar farl/ 011-r
:n'l"f f+~'1'1'1or h1~+mO'" IfCf b) use, subject to the relevant water laws,
ft01J6~1 P&.fJJ"f h{)~i\~ flf'1 water from any water body, situated
or1 c&l! O~.4»~ hAft. ar{)T on, or flowing through, such land or
hUt 'I~ CD.eSJOh*C(I1 hUtfA~ sink a well or borehole required for
h01JC;TarSJOforI! SJ016L'"foom mining operations~
"'SJO: TA~ CD.eSJO TA~ fAIf'1
farl! .,.~~~ foo~~C!
. c) use constructionmineralsfrom within
m) O~.4»~ hAir ar{)T h{)~i\~ flf.,.
oo()l+ AOTJ.y."f1ftoo"C:J-r O~ the licenseareaand an area adjacentto
.4»~ hAft.C;,OhCPl\~hUt'l~ n;r the license area as required for
fDJ1C1;r OTJtJ~C;-r1 foom"'SJO! erecting essential physical
infrastructurewithinthe licensearea;
d) requestthe appropriateauthorityfor a
00) h~.4»~ hAA ar6L'" ftP&.or lease of land outside of the license
fUtff1~A'Iar1 P~&. Oh.&..e
h1JV)mar fUtoofth+ar1 hl1A area which is required for mining
foomf~! IfCfSJO fh.&..e arA operations;providedhowever,that the
DJf.o;rfJJ;P OUtoofth+ar hl1A
terms and conditions of such lease
fUtCD()'" IfCf fUt~C;O-rSJO "001 shallbe determinedby the appropriate
h01JtJ~1 P&' ~.4»~ "001 authorityand its durationmay not in
fh~l\-r ~rtar1 Q;\.SJOC:OTJft~ any event exceed the term of the
f fto-rSJO! licenseincludinganyrenewalthereof;
e) subject to the applicable laws
lP) f~1 arm..y."f1 {)ftoochlTC; OSJO-r
regarding the cutting of timber and
I1Tar "fDJ7f"f1 ()ftoo-rhA f(j)~ reforestation,cut and use, within the
hDJC111fi\Tar :n'Jo"f1 001JhOC license area and the area of lease,
O~.4»~ hAlrC; .-O+h&.rar oo~~ timber which is necessaryfor mining
hAA ar{)T -ftOTJtJ~1 p&.ar operations~
h{)~i\~ rlf'J. f~1 orm..y."f1
foochlTC; foom"'SJO!
'll'i' GitUZ J..Y.&-IA'1?6-r ?U.1Il4r1'C ~?; m9"/b fi~ .,., fj'U C}.9" Federal Negarit Gazeta No. 45 4'hAugust, 2010 page 5407

l) ibfto'f ()pl'f h1~.e1f11lrC1T£& f) use the existing infrastructure if such

OD()c;hA fOt/.e/"1'C hflhlf'1 use shall not impair the use thereof by
1:lfl O'1C1C fODlPl1' AOt/~ other persons~ .

h£&:J'C:'f fOD1A1A'!
() ro~ /"lP1: hAir ftOD1:lfl hfl/,.l\1.
flf'1£&1 00111: f1~£&lTI~ fe7J1: g) cut such timber as is strictly necessary
OD~l1' ff1C1T£&1 ttc;:'f -n:f for access to the license area~
f ODchl1' ! .-

1i) O/"lP~ OD,pl~ f1C1T£&1 e7J~:J' h) relinquishall or partof the licensearea

pl'f I1OXl\ :t1:01J.f Ot/flm1~~f by giving prior written notice to the
OODflm~ f /"lP1: hAlr1 Ooo.lr
Licensing Authority and upon
ro.ecr Oh~A ro.ecr O/"lP~ l\.e
O+m~""~ Ot/tJ1:'i~ l\.e ff1OJ.1 fulfilment of all obligations,of the
OD-n~ fODA~:t! license~

~) /"lP~ Mo'f Ot/tJ1:'i~1 h1-'tfl1

~~ ro.ecr f/"lP1: hAir fOt/tJ i) modify his license to include other
1:1 hcr'frf:1 Ooo.tr fOt/'I1~~ minerals not specified in the license or
hlf'1 fOt/tJ1:1 hcr'frf:1 oo.lr to include other areas outside his
h1-'tnti:1 +~C"" h1-'t?i?iAf1~ license area where he believes that the
f ODmf:t:: license area does not include the entire
deposit of minerals.
II fOt/6J.bOCOC 1:C1. ~ I1A+/,.fJOD Ofl+-
~C /,.:p1: f1ODmf:t O~lO Ot/ODAh:f 2/ Except in the case of fraud, no irregularity
ro.ecr /"lP~ hOD()mrf: ro.ecr f1.tb in the application for or in the proceedings
Ot/&.n01J.f hOD~l~ O~~ 0'10l£& previous to the grant or extension of tenn
1J.~~ f1'/"~OD rC;:COt/iLi: hf1ODO}l\~ of a license shall affect the rights of the
fC1f1/"lP~1 OD-n~ hf~1:AO~cr:: licensee.

q;g. f1/" P. l\ e7J

~ 34. General Obli2ationsof Licensees

~I he7Jl1-n C1l\T£& ftlU hP'/: tbfto'f If In addition to the obligationsunder other

1:1 ;J1.pl'f f1'ODf1hrf:~ e7J~:J'pl'f relevantprovisionsof this Proclamation,a
h1.(+mOch 11''1£& Ot/1~arcr C1f1/,..4>1: licenseeshallhavethe obligationsto:
f01J.h+lr~ e7J~:J'pl'f .e(j?O:J'A:.
V) fOt/tJ1:1 P &.£&1 01'1lP4:: T ;J a) carry out mining operations in a
~'i :tA1'ti:'i O+qol\O~ ~'1.:J'
+10. 011'''' ~.,..'f: 'th(jfto:ct'i prudent, diligent, and efficient manner,
f1Ot/tJ1:1 h.1~fI~& +~C1.e'1.}w in accordance with the appropriate
1117 fh()&.C Acr1: ODlPl~ laws, technology and good mining
fOt/I1~1:i operation practices generally accepted
in the mineral industry~
(1) frotLfto:t:1: flP&.+t1':t:1'i fib
fto'f "pl'f1 m.1'1~'i ~U1'1~ b) conduct mining operations in such a
OtJ1l.fl;J"1''i. O+/"1'C: hl1f1o. manner as to ensure the health and
l\.e f01J.~Cfl ~~~1 ro.e9" 11h safety of his agents, employees and
l\1 O+:ff1 onm1 ODhl\hA 001J.f other persons, and comply with the
fI'fA tr'1.:J' fOt/tJ1:1 P &.£&1 applicable laws pertaining to
fOt/h'iro1 i environmental protection~ .
ch) f1Ot/tJ1:1 P &.£& hfl/,.l\1. flf'1 c) ensure that employees getthe training
pAm'i'i ~cruc~ lP&.+t1':t:
and education necessary for mining
h 1-'tf1J. fOt/1: l e7Ji
operations~
OD) O/"lP~ hAA: O+h&.f£&
OD~~'i hP"~ 011''1 OD~~ l\.e d) take proper precautions not to interfere
~;Jce f.et':J' OD11~ fl\T£&1 with other legitimate occupants of the
()pl'f 1\f1Ot/roh +10.£&1 1'1lP4: license area, the land covered by a
fOD£&()f: i lease and adjacent land~
1~ gitqf~ t..Y.iJ.A '1;Jt,:t-;Jlf.fI}~'I'C '!jg th¥"h. 1;~ +, liU 'tr Federal Negarit Gazeta No. 45 4tbAugust, 2010 page 5408

lP) htbftoT f1ft~.4>

AT (JJ~cr htbftoT e) cooperate and contribute financially in
OfDT ;JC 0;Jt. ftOtJ.mctcrf1:fOP
the construction and maintenance of
0~.4>~ tJi.\t.\ (JJ~cr OTht.\'OP infrastructure to be used jointly with
ool.-,r I't~ ft01J.Hl'1' \,OOlPlT other licensees or other persons within
t.\tPJr hOP:J'~T DJ1f1:J''1 1'1'1 the license area or lease area~
\' ooTf10C'1 11H11 \'tPJlJ'l1lr I
l) OtPJ6~'r P't. I\~ h1~~r \'tPJ f) permit other persons to use his
~~1'COr hl1hlf~ ~ll1 O~, infrastructure freely or, when the use
(JJ~cr ft.1DJ~ t}l'ttPJ o.lf1 1'10. is for commercial purpose, upon the
OP1 h~Y OtPJl1h~t.\ OHl;J:f£& payment of the appropriate fee,
\,OOlPlT t.\OTJr nOP:J'~T provided however, that such use does
tbftoT OfDT h 1-'lmct~
not impair his mining operations~
\,oo~ct~ I
g) permit other persons or the
0) ~11T~ v.~:J' o.&.mC hOOlPlT
t.\tPJr hOP:J'~~ I't~ ftOtJ.~COOP
government to use temporarily his
infrastructure in circumstances of
11t.\?ir 11:f tJUJ OtPJl1h&.t.\
tbftoT ofD"f (JJ~cr 001DJP'r emergency, subject only to the
01.tt.Ylf~r h1-'l '1ft1~f1:fOP f{1D- payment of compensation in the event
roo~~~I of damage thereto~

i'i). T~I't1.OP "ffto:J' I'tI't:fOP herr- h) give preference to the employmentof

?i YlfY1 r~1'C ~~OtJ.Y rool1 Ethiopian nationals, provided that such
mrI personshavethe requiredqualifications;

~) 0lJ';J:fOP T(JJ.q.qt'1 wrt.:J':fOP i) give preference to domestic goods and

Tool1ll1l~ ~l:4 YI't:fOP h 1~t.\11 services, where they are readily
ftOtJ.1J. rl/1C OPl11' 6.4>fD'f'1 available at a competitive price and are
h1t.\DJft-f.T ~~OtJ.f rool1mr I of a comparable quality~
0) mLU hlJ'1:: O~111'1 Ooooot,r j) effect timely all payments requir~d
oolPlr rOtJ.~ftDJOr1 tPJc;:fOP- under this Proclamation, regulation
1SJDh~Y 0(JJ~1: rr ooh &.t.\I and directive~
1') oolJDJ11rf~1c; ti1CA"f1 0&..4>~ k) make available all books and records
O(J;lOP qftP't.\11l1 (JJ~SJD OtfiDJ for inspection by the Licensing
p'A11l1 OToti1:fOP tbfto"f Authority and other duly authorized
htJl'tr h1-'looloo~ rtPJ~l11 I officials under the relevant laws~
:f) r &4.4>
~ Hoo'r o.fO.4> (JJ~SJD r~ 1) remove constructions in the license
:P~ ht.\~1 o.ft~ O&..4>~ht.\~c;
OTht.rOP ool.-,r I't~ r1~q:fOP1 area and lease area upon temrination
DJ1Q:J'fD"frtPJl1(JJ1~:: of the license or relinquislunent of the
license area.
II mlUh1~?\ 1CJ.l1 h1~?\ I~IIlPl
2/ The allocation of the cost of construction
rToofthTOP rDJ1Q:J'c; r1'1C; (JJ(J;l
~t.\~t.\ OTm.4>OtJ.fD~ r~~l1 (JJh~
and maintenance of infrastructure under
DJtA;Jftor oom1 I't~ Tool1Crf 0&..4>~ sub-article (1)(e) of this Article shall be
0(J;l f1ftP't.\11l1 ~(JJoc;t.\:: determined by the Licensing Authority on
~
the basis of proportional use of the
infrastructure.
r I Qft&..4>
~ mLu h 1~?\ 1CJ.l1 h 1~?\ 3/ The government may takeover, free of
1~/(:f) oolPlr fl't~"TOP1 DJ1Q:J'fD'f charge, the constructions not removed by a
001DJP'r YftSJD1SJD h~f rt.~ 111lr licensee under sub-article (1)(1) of this
fLf~C;J:fOP ~'fl'tt.\:: Article.
1K' ~oJlfjj t..~&-A~;i~-r ;ifl.lIl~'I'C !;~ dt9"/b t;t +, ~i'iJl'J.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5409

t]jt. f U f: pAA CD(}1

r 6.fJ:'f: hAt.\:. 35. Boundaries of License Area
~I rOTJof:1 OTJerlT p'lrar O~ftA CD~er A license area shall comprise of:
0)\1i1 'I'hOTJ"f+ar rDTt'r~. rOTJof:1
her"f.y."f1 rOtoofthT OJf1 0f:1fl~:t: 1/ the land within the boundaries and all sub-
aril'f' rOt 11ar1 ool.-,T'i 0f:10~:t: soil there under to an indefinite depth
th~,f f1A+CD(}" 'f'A~T OOtroCf: within the vertical planes passing through
~'f':t' ooilooC aril'f' r01/.il++arJ. each boundary where the mining involves a
rhCo erf:C hAA .e~1iAi .. primary or placer mining operations;
II rOTJlJf:1 OTJerlT p'lrar O+lrk
her"fT l't~ (t(f1 r'I'lrk her"f1;1 -n~
rOt,fmfJ:'AA ~(f'iA:: 2/ the depth of the deposit compiled where
the mining involves mining operations
from stockpile or residue.
c!jl~ ()ft&.!Pf: OD~lrlll
rttu hCP'f: h1~?1 c!j~(li) h1~+mfl~ (fe;: I 36.
&.fJ:'f: om.or f1ftP'A«I1 Oh1f: r&.fJ:'f:
hAA l't~ ft+ft,f~ OTJlJf:'iT &.jP/l."f fl.o'f' The Licensing Authority may, subject to Article
~"fl'tA:: (fe;er &.:pf: o.sr-or f1ftP'A«I1 . 37(1) of this Proclamation, grant licenses for
+ ~lrlr(lar~ &.:Pf: ~ ~er (tA O+omar different minerals 'within the same license area
~fJ:'f: OOlPlT OOtil~~ rOTJlJf:1 P'1rf11"f subject to notification of the holder of any
l't~ rOte; lor1 +?llJe; oo1er1er'i ~U1~ existing license in the same area upon
ft~f:qoar f1ft&.!Pf: OTJqro~hftOT:: assessment of the impact of the superimposed
license on existing mining operation.
m.~
f: o.sr-or f1ftP'A«I1 rOTJlJf:~1 37. Precedence of Licenses
~I &.fJ:' .

h.pe;Ot,fce m~01J.:t' ro~er tbfto"f

hDJf1-n ,fl't:far1 rh.1fiilTOO1T C}l'tOTJ 1/ Unless the Licensing Authority determines
p1"f OOlPlT OOTJf:lDJ Ofbl't h!J.:11
otherwise on the basis of the economic
ilACDlt.,O~C:. benefit of the minerals or other appropriate
investment objectives:
V) rh~+~ ~l;q OTJlJf:1 OTJerlT
P'1rp1"f Oh"iI+~ ~l;q r01JlJf:1
P'-Irp1"f h'i Of1Ul'tce rOTJlJf:1 a) a large scale mining operations shall
P'1rp1"f h1-'l.rer rh"iI+~ ~l;q take precedence over small scale and
OTJlJf:1 OTJerlT P'1rp1"f flf1Ul'tce artisanal mining operations, and small
rOTJlJf:1 OTJerlT P'1rp1"f l't~ scale mining operations shall take
~AOt"T ~e;Ir:fCPAi precedence over that of artisanal
ft) Oh1f: r'I'rolt'I hAA l't.e ft-tft,f~ mining operations;
OTJlJf:'iT hh1f: fl"~ r(f~ b) if more than one licenses of the same
i'OOqC\~ ~l;q Yl'tTar &.:P/l."f status have been issued covering the
hi'ltnr ooo;loot,f r+ltm rOTJlJ same area but for different minerals,
f:1 P'1r &.:Pf: Ofbfto"f rOTJlJf:1
the first issued license shall take
P'1r &.fJ:'/l."f l't~ ~AOt"T
~e; lCPA:: precedence over mining opeTationsof
the other license.
II &.fJ:'
f: o+ltmOT hAA l't~ ft+ooqq~
OTJlJf:'iT 0i'~1r(l ri'ltm &.fJ:'f:(l e;c 2/ If any area subject to a license is found to
flhChC l't~ ,fft(JP hAA fl~AOtar be superimposed upon that of another such
f1ft&.fJ:'.t': ~"':t' P'C h1Aft (fe; license for the same minerals, the area in
~~mIrA: : dispute shall be considered to be within the
area of the first-issued license.
11\ li;tgfI 4.y"~t\ .,?t-r ?If.tIf <IITC~?; thf"fb S'~ +1 fi'i.!l ~.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5410

~. /"!l-f: i1ftOl/1l:Mft~ 38. Transfer of License

~I ho}~rC; .ett hoof\'r &.!l-Jl.'f Ol1+~C
0I/1~ or~ &.!l-f: /"!l- f:. ('}lJJ..m-1 flfa
1/ Any license, other than a reconnaissance or
pAtIl1 Oo}f:O'IJ.f OOl/l1&.~f: ft.+t\fa~ retention licenses, may be transferred with
.e'ft\A:: .
the prior consent of the Licensing
Authority.
~I 0'f1~or~ /"!l-f: mtu her"!: Oh1~?\
2/ No license may be transferred to a person
I~ 1O-l1 h1~?\ (C) fa+oofah+ oliJ. specified under sub-article (3) of Article 11
. h.ei'i\~- of this Proclamation.
cl OI/c;:fm-~ &.!l-f: fL+t\fa~ fafltr ~~.e
O+Ii;J:l 0011'111t\.e O&.!l-f: o~m- 3/ Any transfer of license shall have no effect
flftpAtIl1 1-Jb\+001i'10n~c' ;n;JCJ! unless registered by the Licensing
arm.r h.eerl.or~:: Authority.
39. Surrender
rlijj. oo11.t1.../1ftooTor
~I O/"!l-~ t\.e f'1flC;A \'0'IJ.ft. ofD'f
oo11r h1~+mO~ lfer: \'h~l1+~ 11 The holder of a small-scale or large-scale
OJ.e~ \'h~+~ ~l.JI \'0I/6f:1 OTJ~l.r 'mining license or a lease may, without
pI,. flfa&.!l-f: OJ.e~ \'h.Ir.e m-A prejudice to the rights of persons claiming
flfaoo11r + !l-Ir'L l1~~~r I-JAerl.m- under the license, surrender any such
O~C. ftf111 \'I~ OJlrr' \,0}f:O'IJ.f license or lease by giving to the Licensing
OTJl1m1~ctf O?\~~ fa&.!l-
f: Obl;l.m- Authority, unless otherwise agreed, at least
. flftPAtIl1 Oool1mr \'&.!l-f: 00111:1 12 months advance written notice.
ft.+m- .e'ft\A::
~I mtu h1~?\ 1O-l1h 1~?\ (li ) oolP l.r 2/ Any person who surrenders his license or
\'/"!l-f: OJ.e~ \'h.Ir.e 00111:1 \'+m
. OTJ1~or~ om- m-ft. ~,,,, faf\'Or 'l.tb lease right, pursuant to sub-article(1) of
\'O'IJ.fl1hrt\:for1 OJ!!o:J'fD'f hoo&.~~ this Article~shall not be released from the
~'h.elf1~: : liability of perfonning the duties imposed
upon him and due to be perfonned during
the tenn of the license or lease.
!1. oolJlSUi-1 ilftooOJ/\?\ 40. Disclosureof Information

~I OflU her"!: oolPlr ft&.!l-f: OlJJ..m- 1/ No infonnation, reports, documents or data

flftl1A1Il1 OJ.e~ fafbt\ \'001OJpr submitted to the Licensing Authority or
hl-JA \'~lO 0I/1~m-~ ool.JI: O~f:
any other government agency under this
OJ.e~ ~:J' Oflft&.!l-~ l1~~~r I-JAlf~
Proclamation by the licensee shall, for as
Ol1+~C &.!l-~ ~1'" ~l1hattf.e07- 'l.tb
long as the license remains in effect, be
f:ll1 OO'lJ.l11'C. +m11f oof\'r
hftOr:: disclosed, except with the consent of the
licensee.
2/ Nothing in sub-article (1) of this Article
~I ool.Jlor \'at '1ft~m-:- shall operate to prevent the disclosure of
infonnation where the disclosure is made:

V) O~rU hl-Jt\r fa+fli nCnC:

OI/tIllrr OJ.e~ ~Coolr fLlf1: a) for the purpose of legal proceedings,
an inquiry or investigation conducted
by an organ ofjustice administration~
") h1~~lltJ fft- ool;QJD"f1 h1~",'nA
b) to any person being a consultant to the
nL,cJ>.(' (\(J;). iMP A fl}1 {\1'L.,.
~t\T foo1OjPT hD'll116 OJf,fJU government or officer who is
LP? 1'~ (Ur1 i OJf,fJU authorized by the Licensing Authority
to receive such information;
'1; l;it§fHi 4.Y.6-A '1;Jt.:J-;In.ffl <IITC !jl; m9"f\. ?;~ +'t liU "}.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5411

tit) ft'l-~~ hOttrfM.A'1ar fllt.e 1IC- c) for the preparation by or on behalf of

1IC hfJl-tA(J'~ Y:l..fJ ftoolUJP'T
the government of statistics in respect
m.e~ oolUJP'TI floomhA fOTJ-
of mining operations, provided such
6Y:l P'1rf11'f fJ;rrf;fJrf;hfJ ftOTJ-
mc;.,.C(t(J'I: . disclosure is no more specific in detail
than is necessary for the purpose of the
lULU hl.,.F\ l(}-fJ hi"'?\' (li) fTooft stati~ticsconcerned.
hTar hAhlt T&. fJOtt~T h.elf l,ar~::
~/i. ft&p p..":fc; &7' .y.":f
41. Records and Reports
/il OTJI;;:OJ--~l1ft&..4>
Y: f01J.hTft.Tl ool;Q
pl'f f rl} hUJ(Hl~T. rltTar &pC.R-.'f 1/ Any licensee shall maintain, in the country,
flV'1C m-fJ'1' floorl1 ft&..4>Y: o~ar proper records containing the following
l1ftp'Anl1 &7'C.y.'f OTJ-rl,l1hftflT:. information and submit reports to the
Licensing Authority:
V) h1'A-r 'l-Y:1Y: fmfll pC he;
ftLU1~ l1Cl1C fTootl'1f1 ~;r a) information pertaining to his mining
6b\.~C:: fOTJ6Y:1 p'lrarlC; fT'1"'f. operations and the results connected
Qrflkf. 'fl f01J.oofth-l: ool,;q?J'f 1 I therewith, including borehole core and
core-log data;
ft) f-r1'C: f~.ec;lfJ: f'lUJf:c; fbfro'f
nUJ(H1rltTOJ-- oo/.;q?J"fJ:: b) employment, financial,. commercial
and other relevant infonruition.
fl.1 C1ft&..4>~ h&..4>Y: (}~or C1f1P'Aflll
nF\~li: fTOm &..4> Y: ".elf l,or fltLU 2/ The licensee may not dispose of or destroy
hl4>?\ leJ.iI hl.,.7\ (li) fToof\hi:Tl any record, borehole core or core-log data
uoll'1n'f: h'1'A-r ~Y:1f: fmfll pC specified in sub-article (1) of this Article,
m.e~fp? 1 fTool1'1f1 ~;r OTJilm'1Y: without the prior written consent of the
m.e~ OTJ1'~r h.e'fA~:: Licensing Authority.

~J:. 1\0'/ tJ1:'1 11ftn. ..)--~..}--

:
~ V'1C ilftoo"b
42. Title to, Sale and Export of, Minerals
/il f~Coolr &.~1: l1ft.et';r f(J'~ oar
OTJ6Y:C;T ftOTJOJ--fllT: ftOTJ1111: 1/ The holder of an exploration license shall
ftuoooCooCc; 01J.'Lil1;c;.1 hil.,.Y:lfO have the right to remove, transport, analyze
flOTJiI&..,.1:c;~c;?J'f1 m~ OJ--6J."V'1C and, with the prior consent of the ~Ministry,
ft~T?i ftoolth .e'fltA:: (J'lf~ fC;~C; export samples of minerals for testing;
0'/0 1:'IT foolUJP'T 111l,T (J'~ar provided however, that such minerals shall
.e.y.rft. I 'Yl\01J.'Lil1;c;.~ iI~~~T remain the property of the government, and
l1ft&..4>~fLofll:fOJ-- h.e'fAlJU:: the licensee shall not dispose of them
J:I OTJtJY:1 fOTJ~l,T P'1r l1ft&..4>Y: without the prior consent of the Ministry.
n&..p~ It.e fTm"''-''TI OTJ6Y:C;T
flOTJOJ--fllT
fC1ftn.T~T ool1T r'1;;:A::
2/ The holder of a mining license shall obtain
! rl OTJ61:1 fO'/~l,T P'I,. C1ft&..4>Y:
fltl.U
title to the minerals specified in the license
h 1.,.7\ leJ.f1 h ,.,.7\ (f) fTuofth-l:Tl upon their extraction.
OTJ6Y:c;:",nV'1C aril1' ftooO'1' m.e~
m.(£D-6J."V'1C ftoolth .e'fl\A:: 3/ The holder of a mining license shall have
the right to sell locally or export the
minerals referred to in sub-article (2) of
~r. ft hCf (\to 11«7«7 ~.,.,. 1- this Artict~.
!i/ Y: hOTJ 6Y:1 P'1r
lD"SJD'1" &..4>
OTJ,,};;: ;JC 43. Technolo2Y Transfer
nTrr" (}~;r f1;hlffto:«l 1iUJUJC
iI~~~T flO1J..r~CUJflT?tb iI~~~-I:1 1/ Where any licensee concludes a
ft01J.'Lil1;? 001J-r 1..11 OTJ
il&..,.Y:C; OTJ
iloo technology transfer agreement in
11'111, hl\flT:: connection with his mining operations, he
shall submit the same. to the Ministry for
approval and registration.
"lJt 1;lfJlfIl 4..F..&-A"?~T ?II.tIJ cfi'l'C !1?; .,.,..f\. f: .,., NiU <}.9" Federal Negarit Gazeta No. 45 4th August, 2010 "., page 5412

II Ot '1.iI-t~ Otlu h 1~K' 1CJ.iI h 1~K' (Ii) 2/ Where the Ministry receives a technology
oorPl.r r-tn«rt\o:ct 7iDJDJC ilerer'1r transfer agr.eement pursuant to sub-article
fL~C11ftr o-tn«rt\o:ct 7i'1DJC rOt '1. (1) of this Article, it shall give its decision
ilrC:'f ernc n.r f.111 ch1'C thereon subsequent to the necessary
/iltl/illfilii: (;
oorP hil&A'Ll&1,I.r evaluation in accordance with the
DJer10TJh~C'}o l&~~ .eOlfJA:: Technology Transfer Council of Ministers
Regulation No. 121/1993.

~g. rOTJlJ~1 0011.y,.'f1 f:Cj 44. SusDension and Revocation of Mineral Ri2hts

/il rfLu h1~K' 1CJ.iI h1~K' IE/ hCj Ig/ 1/ Subject to sub-articles (3) and (4) of this
h1f.1'mOch 11''1l&&.~~ 0ta;1.l& I1ftP' Article, the Licensing Authority may
AlfJ1 rl1ft&.~~ 1''1I1C OOTJ~OI.O~-: suspend mineral rights partially or fully
Oht)C){t m.eer OrP&-1'i1''f It.e hl1~ where it believes that the activity of the
hf.;J rOtfilhrA 0011''''1 ft.fer10rCj Licensee is likely to become an imminent
I1ftl& 1'Q;).I16).blr~:r OTJ1~ 11T~l& danger to the local community, the
oo~rch. 11'«r o.1~ &.~~ 1 uo-ft. environment or its employees provided that
Ouo-ft. m.eer Oh~A OTJ1~ .e'fltA:: . such suspensionis the only remedyunder
l.~~ 0ta;1.l& I1ftil. AlfJ1 hDJ~ the prevailing circumstances. The
rOt'1"Or1Cj iI&- rOtlerCOr1 ~1er Licensing Authority shall inform the
ftl1ft&.~~ OTJ"m:".e«rCO:rA:: licensee the date by which the suspension
lapses and it may resume operation.
II rfLu h 1~K' 1eJ.iI h 1~K' (E). hCj (m
, ~1;J~PJ'f h1f.1'mOch 11''1l& 11ft&. 2/ Subject to sub-articles (3) and (4) of this
~~:- Article, the Licensing Authority may
revoke any license if the licens,ee:

V) Otlu h cp~ -: 0f.111 m.eer 000

ootf r1'lfJftoOr1 111111 'In DJ~ a) fails to comply with the financial
:rPJ~1t)A&.tJOOI obligations prescribed in this Proclam-
ation, regulation or directive;

ft). .rOTJlJ~1 P'&-PJ'f1 Ohl1~ TA1' b) conducts mining operations in a

~'1r m.eer 11'1 11t\o hDJI111I1A grosslynegligentor wilfullyimproper
11''10011~ hht)'i.f.I
manner,

tit) r &.~~ 1 oorPl.:r'l! ilerer'1.y,.'f c) breaches any material term or

m.eer DJ~:rPJ'f hlfJOI condition of his license;

00) OP'&- TC:DJ6-UO- ooOl.r rOTJ d) is not conducting his mining

lJ~1 P'&-PJ'f1 rOTJft)'i.~ hl1''1I operations in accordance with the
workprogramme;
rP) r?f.~l&1 rht)l1{t 1'K'lJ«r DJer1
OTJCjr m.1'1rCj f.U1'1r f.1.1IPJ'f1 e) is in breach of the approved
1'''' h1'11I environmental impact assessment, and
safety and health standards;

I.) OfLU OhCP~ -: 0f.111 m.eer 000

f) has submitted false or fraudulent
ootf ooOl.rOTJ:"I.11 hOt111l&
~Pr.e ;JC O1'ffl1 . rnnft~ fA information in connection with any
11''1m.eer r1'''''1' 001.11 h:"cn matter requiredto be submittedunder
h1'11 I this Proclamation, regulation or
directive;
1~ ~'ltgfIr 4..~6-&\ '1;J&T ;Jrl.1Il4c'l'C ij~ J.,.-h, t;~ .,.1 litf 'Uu Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5413

0) ~i'try.fr: rtJhtt~ ~lf-rCJ m:":J' g) fails to maintain complete, accurate

tJ!or1 ~~:J' ~o-cz.ft\~ OD1I1n and current books and records or
'f1CJ ttlCP--'f1 l16\fl1: +&A1 other documents or materials required
tTC.y.'f1 m~'r lbfto'f 0~P--'f1 or fails to file reports or other
om:"i: 11l\~lO m~'r i'&A1
documents or fail to give notices
O1/{}:J'm<tfP>'f1 Om:"i: I1/'\Om1
required; or
OJJ!,9"

nhOjqn- P'bvrn frl\mor fL:J>~ h) fails to grant a dilly authorized official -

0)
l\m.or q"p' AiJ)1 lP~r~ (J),( of the Licensing Authority access into
L:J>~ hA'" (J)~9" nh.~~ (J),(rf- the license area, the area covered by a
"or hAA h1~~1q (J)~9" f«7o~1 lease or to any other site or premises
p'~p:i'f ft1't.t)'L~qror1 n;rfD"f of the mining operations or to his
(J)~9" +*«7+ (J)~9" rq"L:J>~ 1 books, records, other documents or
001l1n"f i ~ttCp."f (J)~r Ibfto"f
l\~p."f (J)~r «71:~ffto"f h1~f~ materials, or fails to carry out a lawful
t).('.l1 (J)~r nlP~+~or frl\mor1 order or instruction of such official.
lh;J1! TOtfll (J)~r oooo~f
t)AL~ooI
L:J>~ l\m.or q"P'AiJ)1 «71~or1r L:J>~
/\.l\ClI ~"fi\A:: > 31 Before acting under sub-article (1) or (2) of
rl &.:pf: o~or l1ttP'AlTJ1mlu h1~?\ this Article, the Licensing Authority shall
01cr{) h14'?\ (Ii) m~'r (I) ODlPlr give notice in writing to the licensee:
hC'r:4 hODorO~ O~r ~01J.hi'frr1
~fl1 ~?\~lj: 01/{}m14'<tf ttl1tt&.:p~
~omCPA: . a) setting out the grounds for considering
. V) &.:P~1 tt01/1f: m~'r ttODOlll the suspension or revocation of the
'rh1fr CJTor ~Dtl\Tor1 ~1C:'f! license;
b) directing the licensee to take specified
measures to remedy any
1'1) l1tt&.:P~ ~&.R01/Tor1 ODi'l\tt~'f: contravention, breach or failure; and
1'0.y.'f m~'r 't-f:tt.y.'f tt01/l'r
fLm{}~Tor ~Ot111Tor1 hC'r:4
p>'f! hCJ
c) specifying a reasonable date of not
ch) l1tt&.:P~ ~&.:pf: 06Q.or l1ttP'A. less than 5 working days, before which
lTJ1 fLY~A"1 .f.111A ~0IJ.l\Tor1 the licensee may, in writing, submits
O1/CJTor'r .,.~r-'f O?\~lj: ~Dtf4' any matter for the Licensing Authority
C110r hh'r{}r ~{}~ 4'CJr Yl\~o to consider.
O<t 4'1::
4/ The Licensing Authority may lift the notice
QI ~&.:pf: 06Q.or l1ttP'AlTJ1 ~h1~ for suspension or revocation of a mineral
m~'r ~{}lt1 ~(}m14'<tYor1 ~DtY'1 right where:
t\or: .

a) the licensee complies with the notice

lJ) q"L:J>~ "L:J>~ 00;r1~ (J)~9" contemplated in sub-article (3)(b) of this
00l\l 11 rh1f+ CJror +11"0>- Article by rectifying, removing, or as
f+"l"~+1 ~1c:"f mto n1+K' 1tr11 appropriate by mitigating the grounds for
n1+K' le//"1 n+l\mor «7l1m1+~f suspension or revocation, or by preventing
n+1"~or 1.tb orl'I'f' nn~ lJ-'1.;r the recurrence of such grounds within the
t)loo i t)?i1i" i t)11(J)1'(i (J)~r time specifiedin the notice; or
h1~~,(1go. h+hi\h" i (J)~r
b) where it accepts the reasons supplied
1'1) h1~ m~'r {}lt1 fL&.?\'r h~111'r by the licensee in .accordance with
001/ttr l1tt&.:P~ OtLU h14'?\ 1D-{}
sub-article (3)( c) of this Article for the
h1+?\ Ir//chl ODlPlr Y4'll1Tor1 lifting of the suspension or revocation.
'rtJ1Y.y.'f hi'4'Ott:
~or::
1~ gii§.E§ &..J?.6-G\'1??-r ?tl.fll 4c1'C !1g dirt\. ?;;t 4',} fi'iJl (HO Federal Negarit Gazeta No. 45 4thAugust, 2010. page 5414

}1tJ:A ht.-C PART FOUR

{}f1~i!.hC OJlt:f:X CERTIFICA TES

~t. f1UJ"1Tf~ h OJl~T f1 ~ 11 45. Application for Certificate of Discovery

~
1/ Any person who discovers indications or
!if f0IJ6~1 ooCjC OJ~~~AhT Y11 existence of minerals may, free of any
0IJ1~C&~ 0(& rf1~1~ h~r.
charge, apply, in the prescribed form, to
f1'OJo~C&1 ~C~ floooo.l\T rUJ"1T
f~{}hC (JJ1.~r h1-'tom(& f1&.JP~ the Licensing Authbrity for a certificate of
o~c& llf1P'AfTJ1 fLroof1hr ~"fI\A:: discovery.

~f &.JP~ o~(& llf1P'AfTJ1 fltlU h1~?\ 2/ The Licensing Authority shall accept and
register the application for a certificate of
1~{) h1~?\ (Ii) f1'oof1h-l:r lF~:1'fD"f
1'''J.A1'C& (L1~ fUJ"1r r~{)hC discovery if the requirements specified in
- (JJ1.~r f10IJUJlr f~l.fl(&1 OIJooAh;f sub-article (1) of this Article are met.
1'~11fro ~oo"UJOCPA::
~~. fUJ"1T f~ h OJl~T f100 tnr 46. Issuance of a Certificate of Discovery
0IJ6~e;-I: fl1'1~flr n:1' I\~ ooCjt.:f(&
The Licensing Authority shall issue a certificate
htlr fl~r rOIJ~:1'OJ:t h[f~: 0IJ6~e;-I:e;
of discovery to the discoverer within fifteen
f1'1J.flr P'tJ:? .r11;f r[f~ &.JP~
f1'omll:f(& OJ~~ OIJooAh;f f~l.flf1:f(& days from the date of registration of the
(JJ~~ f1'hf1hfr I1A[f'r &.JP~ o~(& application if the minerals were not previously
f1f1P'AfTJ1 0IJ00Ah;fC&1 h1'~flf1flr 'Lit discovered in the area in question, the minerals
h1{).y. flIt ~e;r (&{)1' f1hUJtC& rOJ"1r and the area in question are not subject to an
f~{)hC OJI.~T ~omCPA:: . exclusive license or an applicationthereof or
have not been reserved.

~z. fUJ"1T f~{}n 47. Duration and Renewal of a Certificate of

Discovery

!if fUJ"1r f~{)hC (JJ1.~r f1h{)? {)~1r 1/ A certificate of discovery shall be valid for
OJt.r fee; ~[fe;A:: 18 months.

~f fUJ"1r r~{)hC
. (JJ1.~r h~:1'Y.{)~:: 2/ A certificate of discovery shall not be
renewed.
Ef fUJ"1r f~{)hC (JJ1.~r r01J.o1'flr
3/ The maximum area for a certificate of
fn:1' oom1 flfltJ hI 11~ h.fro O'!rC
h~flA1'~:: discovery shall not exceed 10 km2

~~. ~c OJl~T llf1

oo-flTc; UJ~:r 48. Ri2hts and Obli2ations of the. Holder of a
Certificate of Discovea

!if fUJ"1r f~{)hC (JJ1.~r r1'om(& 0(&

r~{)hC OJI.~-I: e1.y. f01J.~~flr 'Lit 1/ The holder of a certificate of discovery
hOIJf1ch~rf~r hUJf111 1\f1C& r &.JP~ shall, prior to the expiry p~riod of the
OIJooAh;f f01J.mfchr1 1'&.I\'L lF~:1' certificate, have the right to apply for an
fD"f f01J.r"J.l\ h[f~ h1Y. hOJf1fr r~c exploration license or a mining license
oot. &.1P~ (JJ~~ fOIJ~l.r &.JP~ provided that he meets all the requirements
OIJooAh;f fOIJ:tI.11 (JJ~~ &.JP~ pertaining to the relevant application, or
0~C&1 f1f1{)AfTJ1 flOIJ{)&.~~ &.JP~ transfer his right to another person with the
fOIJUJ7r 0011-1:1 f1fbl\ 0(& fOIJ{)1'
approval of the Licensing Authority.
1\f1tJ: oo11r ~CjI.CPA::.
1X' ~ifJ!nl; ~&-A "?~-r ?tI."l 4c'l'C ~~ d1,..t\. tt:t +'} fi'i.!l <}.9" Federal Negarit Gazeta No. 45 4th August, 2010 page 5415

~I fUlU h14'?\ 1eJ.l1 h14'?\ (li) "+00 2/ Without prejudice to the provisions of sub-
nh+(I)- h1~+m04' V'er r"~r rsrol» article (1) of this Article, where the holder
he tDl.+T r+nm(l)- nar (}ft&..4>~ of a discovery certificate is a licensee, he
hV''1 r4'~qo(l)- &..4>~ r+?""r1 OTJ6~ shall, alternately, have the right to be
c;r m~cr nPt\~ rV''1c&1nAA h1-'l granted -an amendmentto tbe license to
~crc +~C'Jo h1-'l7ii'iAftr OhOTJ&. include the discovered minerals or area
~'1r roomr~ ool1r ~erlCP6\:: adjacent to his existing license, provided
V'ercr r+?i7iftar nAA fL&.4'~ hOTJ. 'f that the amended license area does not
ftar nAA fIl&f fLfAft. h~'fAfJO:: exceed the maximum allowable area.

ml+r 49. Application for Certificate of Professional

Competence
OOTJ6~1 "Cft. rOTJOTJhCh?A.,trr
P&' oonOTJ&.r rOTJ.&.A., OTJ~(I)-cr 1/ Any Ethiopian who wishes to engage in
her~W flf +?fl(l)-1 rOTJooAh:f nft.f consultancy services in the mining sec~or
Ooon&.Ac; r+m()'1ar1 rOTJooAh:f may apply for a certificate of professional
. 6:ccr Ooo~ftr ftOtJ..
'1.l1i:? OTJooAhr competence to the Ministry in the
~'fftA:: prescribed form and with payment of the
prescribed application fee.
~I DTL'1.l1i:?fUlU h 14'~ 1eJ.{}h 14'7\ (Ii)
r+oofthi:r rr'/,;rfJ1'f +OJ.A+(I)- (L?~ 2/ The Ministry shall accept and register the
OTJooAh:far1 +4'l1fro'-~oo""OPA:: application for a certificate of professional
competence if the requirements specified
in sub-article (1) of this Article are met.
2. f~Y -fj.4>t ml+r I 50. Issuance of a Certificate of Professional
ftftool1mt Competence
iiI hooAiJ:t: \'OTJOTJhC h?A.,trr
t\ool1mr (}oofth+Or ~ f hl1&.ft1(1)- 1/ The Ministry shall issue a certificate of
har4':rc; r P&' Acr~ ff1(1)- 00V'.,.1 professional competence to the applicant,
tLfcr10r "i'1.l1i:c;. roo-f l1.4>r provided however, that the applicant has
OTJl:J1"'"1.
rcrl1nC ml+r ~omPA:: the necessary qualification and experience
in the discipline he wishes to consult.
~I roo-f l1.4>r OTJl:J?"'"I.
rcrl1nC ml+r
fJ1.y. r"i~ ~Or "001: r"i;r ~l10rC; 2/ The validity period, renewal and
r"inlll0r rr'/,;r O~111~mnC;A:: revocation of a certificate of professional
competence shall be prescribed by
regulation.

ml4'r I 51. Ri2hts and Obli2ations of the Holder of a

Certificate of Professional Coml!etence

iiI roo-f l1.4>r OTJl:J?"'"I.rcrl1nC ml4'r

r+nmar nar OTJl;J?"'"I. o+nm(l)- 11 The holder of a certificate of professional
oo-f OOTJ6~1 "Cft. ft+nOTJ&. OTJ~ co~petence shall have the right to provide
arcr nar rcrnC h?A.,trr oo{)mr consultancy services to any person
~'fftlA: : engaged in the mining sector in the
discipline he is certified for.
~I roo-f l1.4>T OTJl:J?"'"I.r+()mar ()(I)-
OOTJOTJhCP &.ar ft~ hoonOTJ&.i:fI&,r 2/ The holder of a certificate of professional
h.,(}l1 ...ftar roo1"pr ooPtf o.r competence shall be required to obtain the
r1"~ &..4>~OTJorfllr hftOr:: necessary business license from the
appropriate government offic~ in order to
engage in the consultancy services.
'lK' ~itgfIl tJ.&-&\ '1?&-r ?rLlIJ <IITC~~ ",,../b t!~ 4',} liU 'J.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5416

}1fJ:A hSJBl!1: PART FIVE

~ ADMINISTRATION

!ill. fJ.~f: ()6IJ..l&f)/\P'AlI11 P'A~ 52. Powers and Duties of the Licensin2 Authoritv
~/ rnAA ~1Pf: ()~ 11/\P'AlTI1:. 1/ The licensing authority of a state shall have
the powers and duties to:

a) issueartisanalmininglicense;
V) rl1;nl\lf 0tJ6f:1 OtJerlT P'I,.
~1Pf: roul'tmTI
ft) fth'lC l&fyr l1ftV11.y.T:. b) issue to domestic investors:
(Ii) fl11hTt.h7i1CJfn.1~l1T6 tPJo (1) reconnaissance, exploration and
f:CJT1 nOlJ.ou"hT f:"~T i f9" retention licenses with respect
C out. CJ .etl f oucff T L:1>Po1- to construction and industrial
fOU{)mTI
minerals;
(fl) rh"{}i'~ '(lJl r~ '~{}Tt
0tJ6f:'iT OtJerlT ~1PP.T (2) small scale rniIpng licenses for
industrial minerals and small
h1JltJ.er rh"{}i'~'i rh~i'~
'(lJl t11{}Tl,.n7i1 0tJ6f:'iT and large scale mining licenses
OtJ'rlT ~1PP.T rou{}ffiTI for construction minerals;
h'i
~) O~U h1~~ 1~{} h1~~ /~/N c) issue certificate of discovery for
hi'oufthi'ar ar~ /\(f-r. 0tJ6f:'iT minerals other than those-specified in
r"~T rer{}nC ml~T rou{}mT: sub-article (2)(b) of this Article.

p'AlTI1'i i'''l1c-T ~er~:J'A::

g/ 'z.{}i;~: -
CTrL 2/ The Ministry shall have the powers and
duties to:
a) issue reconnaissance, exploration,
V) O~U h1~~ 1~{} h1~~ /~/ /V/ retention and mining licenses other
OUlPlT OhAA ~1Pf: o~ than those to be issued by a state
l1ftP'AlTI1 hCTrL()lIrT O{}i'~C licensing authority under sub-article
r:"~T: rcrcoul,.: ~tt rOU~rTCj (1)(a) of this Article;
r0tJ6f:1 . OTJcrlT ~1PP.T
r ou{}mT I
ft) ft{}TI,.i;JtIJlf. 0tJ6f:'iT r"?~T b) issue a certificate of discovery for
rcrflnC ml~T rOU{}mTI strategic minerals; .

~) O0tJ6f:1 HC~. rOtJ01JhC h'lA"?froT c) issue a certificate of professional

P'I,. ou()OTJ
I,.T ftCTrL~A'1-- l1ftuu. competence for professionals who
f PJT r~ f 111PT 0tJl;J'l'*l. wish to engage in consultancy services
rcr{}nC ml~i' rOU{}mTI" in the mining sector;
d) conduct testing and give permission
ou) (J}.(or~ fOlJ.I\h- ftPJof:1 CJoo-CJ?J"f1 for the export of samples of minerals;
fououCouCCJ fouli:.,.f:I
provided however, that it shall obtain the
p'AlTI1'i i'"?l1c-T ~Cj~:J'A:: (fercr approval of the Council of Ministers in
r0tJ6Y:1 OtJcrlT ~1Pf:' rCTrLomar
respect of issuing any mining license.
O~ f:CTrLf rOTL'z.{}-rC:T ernC o.-r1
~tJ.1:J' Ooumro}. ~(f'iA::
11\ l;itQfH 4.~6-A ~;J6:" ?H.ffl <k1'C ~l; <hl}"fb ?;~ 4>,} Ii'll 'l.?" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 54i7

E/ otto h1~?\ 1D-l1 h1~?\ (li) (JJ~VO(~ 3/ When the ownership of any license issued
£lTUDl\hT£& UDU-'I.:r ~TOm in accordance with the requirements of
O1Jc;:f£&VO &.fP~ rClI\f1:r'!:r .eIH: sub-article (1) or (2) of this Article
~+~rl. h1~ff'! &.fP~1 rOffi£& &.fP~ changes, the Licensing Authority that
O~ C1t\P'AfIl1 h&.:P~ ;JC r+yy", issued the license shall transfer the
0'1/l."f1 1\0000ODl\hT£& &.fP~ O~
ClI\P't.\fIl1 O1Jl1Tt\I\~ hl\£l:r:: documents relating to the license to
appropriate Licensing Authority.
2/ 01J1~£&VO &.fP~ O~£& ClI\P'AfIl1
r01J.hTtr:r p'AfIl1c; T"1f1C'"f 41 Any Licensing Authority shall have the
powers and duties to:
~c;~:t'A: -
a) receive, process and reject or approve
V) Otto hP'!: UDIPI.:r I\01JtJ~1
P'Ir?J"f r01J.~Cfr O1JUDAh:rf1J"f1 any application for mining operations
UD~£lA: TC'ol1 01J.~1."1he; £&~~ submitted in accordance with this
01J~1."1ro~VOO1J?\~~! Proclamation;
1\) 01J1~£&VO ClI\&.fP~ £l&.fP~ b) ensure that any licensee has the
rT UDl\h1::r1 "1Y-o:t'f1J"f I\UDrofll:r necessary financial resources and
hl1&./t'l.(& r11tHl V016J1>c;rrth'th technical competence to fulfill the
l1fP:r fl\(& UDff~1 r01JI.;J11'! obligations under the license;
rh) £lbtLl.:t' £101Jro~~C ro~vo ~1'T~ c) enter into mining agreements on
. £lff'! ~C~C UD1"1P':r1 ronfto behalf of government either by
r01JtJ~1 l1VOVO'!.y."f1r01J~I."1!
competitive bidding or direct
negotiation;
UD) £ltto hP"f:: £l~111c; £lUDovtf d) issue, renew, suspend and revoke a
UDU-'I.:r &.fP~ r UDl1m:r : f01J~l1 : license in accordance with this
r01J1 ~c; r UDOI.1f ! Proclamation, regulation and directive;
e) receive, subject to the provisions of
Article 40 of this Proclamation, all
IP) rllo hP'!: h1~?\ ij ~1;J'1
.h1~1'm£l~ ffCj £lh1~?\ ijji information and records specified in
rTUDl\h1::r1 UDl.:qc; thC/l."f Article 41 of this Proclamation;
r UD4>£lA ! t) inspect and ensure that mining
I.) r01JtJ~.} P'Ir?J"f £ltto hP'!:: o~ operations are carried out in
1n"f : OUDUDtff1J"fc; h "1Cll1 Clt\ accordance with this Proclamation,
:f(& l1VOVO,!.y."fUDU-'
I. UDl]'l,A t regulations, directives and the
:f(&1 rUD~fIlmCc; r01JI.;J'l1'! applicable agreements;
0) ClI\&.fP~ hl1~~qo r1Cl:f£& "1Y-o:t' g) without prejudice to prior
f1J"f h1~TmO<h ff'!£& fUDI.;r commitments of the licensee, require
:f(&1 O1JtJ~c;:r O~tr ro~VO that the licensee sell locally all or a
£lh~A 1if~ 001J.hc;ro1£l:r ro~:r portion of his minerals to government,
f11\(& r~l\vo 'JOy P;J ftUD1"1 public enterprise or any other person
P':r: I\UD1UJP':t'if ~C~:r ro~vo subject to the payment of the
I\t\t\ O£& £lh1C £&il1' h1.tt1i~'
international market price prevailing at
r01J~I."1 !
the time of the sales transaction;
1i) Clfht\if 01JtJ~1 O1JVO
I.:r P' Ir
r01J.l]LJ.~O:r1 P'~1r hYmc; Oth"1 h) explore and declare by legal notice
O1Jl1:t'ro<tf ruuhl\A! areas reserved for conducting artisanal
IDlmng;
~) otto hP"f: : O~111'1 UDUDtY
UDU-'I.:r r01J.h&.h-:r1 C'ffL1:: i) collect and audit royalties, rentals, and
rUD~:r ~Ir~c; t\fto"f h~Yf1J"f other fees payable pursuant to this
rUD011011c; lJ.VJfr1 rUDUDCUDC! Proclamations, regulation and
directive',
1R' ?;it§.fI~ &..~~&\ '1;Jt-r ;Jtl.fll ~'I'C !1?; dtlJ"h, It';t +, liH 'U" Federal Negarit Gazeta No. 45 4thAugust,. 2010 page 5418

j) ensure that mining operations carried

fl) flft&..4-~:f r01J..rl-)'l.~ T£& rOTJ6Y:1 out by licensees take into account the
'P'Irf11:f rhl-)fl(l 1'fl.4-1 f1c;tlfrC; environment and are beneficial to the
ft01J~fllOfr rhl-)fl(lA01Jr hl11'P community in the mining areas.
?\ ~ r~ff.C~001f~1 r01Jl;J11'::

53. Minine: Operations Advisory Council

2£. r01JtJY:1 P'1r T ~n fl.r
1/ A Mining Operations Council shall be'
!il 0IL'tllrtc;..1 rOILf01JnC r01JtJY:1 P'1r., .
f11:f ~nC fl.r R.,**01JA:: i. established to advise the Ministry.

~I r01JtJY:1 P'1rf11:f ~nC fl.r hfll\r 2/ The composition, responsibilities and other
1'P?\~: ?1\1u~rC; ~fto:f lIClIC . particulars of the Mining Operations
ir'&:J'f11:f flf.1.oR.,mOC;(r:: Advisory Council shall be determined by
regulation.
54. Inspections
2§.~
1/ Any authorized inspector of the Licensing
. Authority may enter, during office hours,

!il 01J1~£&~ p'AflI1 r1'om£& r&..4-Y: any license area and may:
O(J;L£& C1ftP'AflI1 1'fflllflt flP'1r
Ol}r mf.01JC;T£&~ r&..4-Y: tiAA
flooOJflr; - . a) inspect any activity or process carried
out in or upon the area in question;
V) fl&..4-Y: nAft. 1\R., mR.,~ £&lI1'
flool-)~Y: 1\R., fft1 01JC;Tor1~
'h1~lI.4-(b mR.,~ 'l.f.r
ftooffllmCI b) inspect any book, record, statement or
other document and make copies or
ft) 01JC;Tor1~ 00111.0: tllCY:: extracts thereof;
ooOJfta>J.mR.,~ O~f: ftooooC
ooCC; rO~~ 1 mR.,~ ro~~ 1 . c) examine any material or appliance
n~A ~~ ftoo£&OY:I found in the area;
m) flP'~lror rOIL11- O1Jrttffto:f1C; d) take samples of any material and test,
00~tff11:f1 ftooooCooCI examine, analyse and classify such
samples;
(0) 01JC;Tor1~ C;go.C; ftoooroY:C;
ftoo&.1'O: ftooooCooC: ftoo1'1 e) seize any material, appliance, book,
1'1C; flhR.,~r flhR.,~1: ftooftrrI record, statement or other document
lP) fltlU hP~: flf.1.o mR.,~ floo which might be relevant to a legal
ootf oofllll ~n1fr nll ftoooo proceeding involving the violation of
lIlr . hll&.l\~ rlf'r O1Jrttffto this Proclamation, regulation or
:f1: tJ.4-f11:f1= 00l\tff11:f1: directive and keep it in ~e custody of
001l1n:f1: ooOJfta>J.f11:f1mR.,~ the Licensing Authority; and
O~Jl..:f1 ftoofllC; fl&..4-Y:O(J;L!&
flftP'AflI1 1'fl.4- P'C ftOTJfrrI
'hC; f) require support necessary for the
l) fltlu 1£J.lI h 1«t?\ r1'oofth1:r1 accomplishment of his inspection in
1'OJfllrr ftoo&.~~ h 1-'l:fA rOIL
accordance with this sub-article.
fll&.A ~r Y:;J(;'.:f 'h1-'lomor
r'hl1l1 ftoollmrI
2/ Where any material, appliance, book,
R.,:fI\A: :
record, statement or other document is put'
~I fltlU h1«t?\ 1£J.lI h1«t?\ 1!iI(lP) oolP under the custody of the Licensing
lr O1JC;Tor~ O1JrttfA: / ool\tf: Authority in accordance with sub-article
0011 111= ooOJfta>J.mR.,~ o~Y: fl&..4-Y: (1) (e) of this Article:
ori"l£& 1'fl.4- P'C 'h1-'lf R., tL~l OJ;-
1~ ~it§fIu ~Y..&-t\ ';?~..,. ?1I."l <II'I'C !1~ diva/\. t;~ 4>, li'iJl <t.?" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5419

V) O,ett;t-£& m,eer O~t"f'1'? PC a) the person from whose possession or

r'10l 0'1~ r+ fHOr O£& +cffll control any document is taken shall be
flItl& hr+h;t-+f1£& rO'1~ 1 allowed, under the supeIVision of the
m,eer ro'1~ 1 h~A ~'f:?J'f inspector, to make copies or eXtracts
h1-'lmtl~ OTJ~l~ ,e~ltA! thereof~
(1) h+ fH£& . OTJ1:tfA: oolttf:
0011111: 00~f16Ti. m,eer o'1~ b) if no legal proceedings are instituted in
;JC O+ffH htl l1A+ooOl+ connection with any of the items
m,eer OOTJ'IT£&erhChC m~r seized, or if it appears that such item is
h1~OTJtll;q ILf1f1~A oo~{\.' not required at any trial for the
hm&.flIt lfer tl1"1 m,eer purpose of evidence or upon an order
O~C~ n.r rhflll f1+fHOr of court, that item shall be returned
O£& m-'lf£&'" ,eoof1ltA:: immediately to the person from whom
it was seized.
3/ The inspector shall show his letter of
r/ +cffllfllt£& OIlU h 1~Y\ 1crl1 h 1~Y\
authorization to the appropriate officer of
(li) ootPlr erCoo&.£&1 h1-'lfl1l/.~
Ot.JP~ O~£& Clf1pAflI1 r+Om£&1 the licensee for conducting inspection
~11.qn. h~Cll1 1tf1£&rClf1t.JP~ lP&.+~ under sub-article (1) of this Article.
rOTJltrr ~~;t- hf10r::
~

55. Prohibition of Occuuational Detriment

A2ainst Emuloyees
The holder of any license may not subject any'
OTJ1~£&er Clf1t.JP~ ,eU1 hCP'f:: ~1111:
of his employees to any occupational detriment
0000tf1 m,eer r t.J- ~ ~~;t- PJ~1 . on account of any such employeedisclosing
hf1OTJhO?1 OP? r01!.1"1lP&.+~ f1t.JP~ information to the Licensing Authority or any
06TJ. Clf1pAflI1 OOTJltm~ erh1fr authorised person regarding the failure by such
OlP&.+~£& r P&' rr'1.;t- Itf 1Jt +Y\6'i holder to comply with any provision of this
rOTt.f~CtI hCer;q ILmtl~ h,e'fAer:: Proclamation, regulation, directive or his
license. .

2~. ~OTJ'1r OTJ 56. Reduction of Profitability and Curtailment of

~ Mining.!!J!erations

~/ rh'1t1+~ m,eer rh~+~ ~l;q OTJ6~1

OTJer l rP &. Clf1t.JP~ r01!.h+{\.r 1/ The holder of a small scale or large scale
mining license shall notify the Licensing
rr'1.;t-?J'f llh01: f1t.JP~ O~£&
Clf1pAflI1 flt£&J-A: - .
Authority if:

V) rm~1: rh:J1'i01/. rr'1.;t- rOTJ6~1

P &.£& rC~ h1ll£& ;JC ff1£&1 a) the prevailing economic conditions
1K"Y\C f1If. +h;t-;t-~ m&.r cause the profit to revenue ratio of
OhOTJl1,e htl~tlr OOOT f'10 the relevant mine to be less than six
h~C1r hlf'1! m,eer per cent on average for a continuous
period of 12 months~or
b) if any mining operation is to be
(1) OTJ'IT£&er rOTJ6~1 P&' OOTJ'IT scaled down or to cease with the
£&er rhtl&. rrf1r mC ~ti. £&tlt"f'
hhPC OOOT Olt,e rlf'1 lP&.+~ possible effect that 10 per cent or
ILf{)~1t1 001/.'fA ~l;q r01/.+1t1 more of the labour.force are likely to
m,eer r01/.cfer tllf1:: be retrenched in any 12 months
period.
.,~ !;ltgfS J..Y..MA'1?6-r ?H.tIJ ~'I'C ~!; ",,..1\,. tt~ .,.') fli'i.1 CUD Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5420

g/ r&..:Pf: 06Q.lD' flft.P-'b\ill 1 r lP t.i';;:C; 2/ The Licensing Authority may, after

01J10t.-J! ~p.~ OIJ.'l.{}1;C1 1]000hl 01.1\ consultation with the Ministry of Labour
~~~ rOlJ.oofthi'lD' rh'1{}i';;: eD~~ and Social Affairs, direct in writing that the
rhti:i';;: ~l;q r01J6f:1 O1J~lT .P-'t. holder of the small scale or large scale
flft&..:pf: rhC~T hC~;qp1"f h 1-'teD mining license in question take appropriate
{}f: O~trti: ooool,f fLOml& ~"fl\b\:: corrective measures.
r/ rh'1{}i';;: eD~~ rhti:i';;: ~l;q r01J6f:1 3/ The holder of the small scale or large scale
O1J~lT .P-'t. flft&..:p~ Oi'omm-
mining license shall comply with the
ooool,f OOOlT oo&,,?,~C; rhC~T
hC~;qJD:J: ooeDO~Tl&1 O~~ti: directive and confirm in writing that the
corrective measures have been taken.
01Jl;J'11' hftOT::

pti:b\ {}f:i.rl:
PART SIX
{tftl]~Jlti:y COMPENSATION

2Z.~ 57. Principles of Compensation

~/ rtLU1 hP'f: hl\OIJ ft01J{}&..?~h{}&..1\1 1/ .Where it is necessary for the achievement

(fer (L'1~ &..:P f: 06Q.l& flft.P-'b\ill1 of the objectives of this Proclamation, the
01JC;Tl&1~ r01J~ 1~"~{) 111lT Licensing Authority may expropriate any
- h"1fl11 flftlD' ;0"1 OOlPlT ft;o;J-J! immoveable property on any land. and
flft111l1: i''1{llD' 1 I]Vf h1-'th&..b\ shall cause the payment of fair
001Jf:l"1 oolD'l{} ~"fl\b\:: fttLU~ compensation by the licensee in
~p.~ h&..~?~ (Lflb\ r01J6f:1 .P-'t. accordance with the relevant laws. In this
Oti:Tm 11m.C ;0"1 <k1'C ~il§Y~ connection, mining operations shall be
oolP l T r
;0 1111 h'1b\ "1 (toT .P-'t. (fer
deemed public purpose within the meaning
~~mt.b\:: of Article 1460 of the Civil Code.
g/ rtLu h 1~~ 1(){} h 1~~ (li) f:1;J'l 2/ Without prejudice to the provisions of sub-
h1~i'mO~ lfer O1JWlD'~ flft&..:pf:
article (1) of this Article, any license
h01J6f:1 .P-'t.lD' ;JC Oi'Yf"
holder shall be liable for any damage
001JC;Tl&~ 111lT I\~ ftOlJ.f~COl&
~~T I]Vf roon&..b\ ~I\~'1T hftOT:: caused to property in connection with its
mining operations.

2~. /lftl]~Jt~~'1U 58. Compensation A2reements

j;/ 01J1;;:lD'~ flft&..:pf: h"1fl11 flftl& ;0"1 1/ Any licensee shall negotiate and reach an
OOlPlT ftflft111l1: {}ftOlJ.h&..ftl& I]Vf agreement with respect to the amount of
hflft111l1: ;JC oo~t.~C hftOT:: compensation payable to the owner of the
property in accordance with the provisions
of the relevant laws.
g/ Oflft&..:p~C; flft11ll1: ool]hb\ OI]Vf
{}~~'11: tr~:rJD"fC; "1S?o:rJD"f I\~ 2/ As soon as the terms and conditions have
{}~~'1T h1~i'~lO flft&..:p~ eD-'tf been agreed between the licensee and the
l&'" r{}~~'11:1 ~'f: ft&..:Pf: 06Q.l& property owner, the licensee shall provide
flft{}b\iIl1 OIJ~l11 hftOT:: a copy of the compensation agreement to
the Licensing Authority.
3/ Upon receipt of the copy of the concluded
r/ &..:pf: 06Q.l& flft.P-'b\iIl1 ri'~l'1l&
. rl]Vf (}~~'1T ~1t h1~~loar eD-'tf compensation agreement, the Licensing
lD'''' ~oo""10Pb\:: Authority shall forthwith register the same.
1~ ?;it~nUi J..Y.&-A'1.?t.r .?lI.fIl <II'I'C ~?; th¥"t\ ?;~ 4>,}fi'i.!l 'UD Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5421

2M. ~ 59. Determination of Compensation bv the

mOl.f!T (}C'b:r Licensin2;Authority
~I {}t\atth&.()ar l10/ n9"9"~:r i\~ oo~ltl 1/ Either the licensee or the property owner
fA1'ft. hl~tf~ Clt\&..4»~. m~9" may, where they are unable to reach an
Clt\~H1li: &.jPf: o61J..ar Cl()pAfll1 agreement on compensation to be paid,
h1-'lmilli\Tar OR'v.~ tLm,e~ request in writing the Licensing Authority
.e'f-i\~::
to detennine the compensation.
II &.jPf: oatar ClI\P'Aflll l1ttar1 {100i
2/ In the process of determining
mOl ~~:r rrl'lrh m?CJ'f ht(} fffll.(\.
compensation, the Licensing Authority
r'} OIJi1l]{C; ooht.htf hl-'l,f.pCfr
OOlJf:lOJ:-
shall allow both parties to present their
evidences and arguments after which it
shall:
V) l1ltari fattmill0r1 .pIC; n;r a) fix a place and date for conducting a
PODOjI\~ tUrt\i:9" m1CJ'f fttar determination of compensation and
!PAl notify the parties of the same;
1\) O.plOar oYfi1l]{C;ooht.ht,r ODlP b) make a determination on the basis of
lr artt~ ~ol1lA! the evidences and arguments
submitted; .

tit) artt'barl O?\Jt.~ fo~t.Al "he; c) record its decision in writing; and

d) give a copy of its decision, to each

un) fm-tt'barl :,:.~ I\rrt\i:9" (IYICf"f party.
~OfllA:: ,

PART SEVEN
pfJ:A ott1: ENVIRONMENT
{}l\hl1'ID.

60. Environmental Impact Assessment and

~. f l1Cl+otJCJ "l'r'J07'i f no (a tPJ
&.1f: Rehabilitation Fund

!if h:P~r: h~tI un~fr m,e9" hClUi\ce 11 Except for reconnaissance license, retention
ftPJtJf:l OiJ'rlr &.;J>f: OilTCPC tPJY; license or artisanal mining license, any
applicant for a license shall submit an
ar9" &.jPf: hl-'lomar fattm~.p
environmentalimpact assessmentand obtain all
hooAl1"f fhilClfl TOtJer UJ9"?tPJarl
the necessary approvals from the competent
hOjCll1 i\t\ar. unP'tf o.r fltPJ:Pll1
authority required by the relevant
tPJ~~:p hI\Or:: ~nvironmentallawsof the country.
~I h:P~r: h.e.tI un~rr m,e9" hClUi\ce 2/ Except the holder of reconnaissance
fOlJtJf:1 OTJ9"l:r tlf\&.jPf: Ol1T.pC license, retention license or artisanal
tPJl~ar9" ClI\&.jPf: nhl-](]ft TOOCJ
w.iriinglicense, any licensee shall allocate
ooA(a OIJrJ:rJ:att,f lDal un(i&.~ funds to cover the costs of rehabilitation of
fattarA &.If: ~un~ClA::
environmental impact.
3/ To be determined by the licensee area and
E/ ft7IJlJf:l 0?1J01.:t- llt\4L7 f:tJ h 1~'" ",}lll}- by agreement, mineral licensee and, as
flllJof:1 9"COD~ flt\L7.f; (}&'7.f; nAl\.tJ appropriate, exploration licensee shall
OftSJOSJO'l-rt1~CD{)1 O.{.71: hAt\. \ht)llo. participate in community development plan
l\tPf.c;~ '1tptPJ"f f"'luOI.Oll AiIIJ:t-\ h:P.f; of the peoples with in the license area, and
oolt1'fi:tJ l\II.U r~Yfl&.A OJ tDaJ. shall allocate money fqr such expenses.
f"oo ~llAu . ,\ \
4/ Particulars shall be detennined by regulation
QI .eu'}'} h'}cfib ftt1lJftt.OlJDlIClIC ""p.~ to be issued for the implementation of this
OD?tDflI~,}1I ~(l}(}C;AH Article.
1'" git!lf~1 4..~&-&\'1.7&-1-.7t1.1il<IITC!;g thr'" f~ .,., Ii'll (1.9" Federal Negarit Gazeta No. 45 4b August, 2010 »» page 5422

\
~{i. /\0IJ1Jf:1 P&' 00 T 61. Mine Closure

{il fh'1{)T~ (JJ~cr rhti:T~ ~lJl rOTJlJf:1 1/ The holder of a small scale or large scale
OTJcrlr P&' f1flLjPf: £101J.hT(rr mininglicenseshall applyto the Licensing
lr~:J'fU"f rOTJlJf:1 ooll;Jr rcr{)nC Authority for>a mine closure certificate
(JJl~r ,h1.il(}maP L:P Y: (}~aP1 upon:
f1flPAfI11 Ilm~~ ~"fl\A:-

a) revocation of the license;

V) L:P ~ (t(}lll!
b) termination of the mining operations;
fl) rOlJlJf:1 P&'aP t't*l1'!
c) relinquishment of the whole or any
dt) fOlJlJf:1 P&'aP1, ttAA £loo-(r
(JJ~cr £lhkA {tfl~! (JJ~cr portion of the license area; or

00) rlPflJf:.,., P&' t'tTaP:: d) abandonment of the mine.

~I OTJ
ooAh:fc& £ltLV h 1+1\ 1CJ.{) h 1+1\ ,2/ The application shall be made within 180
(li) rTooflhi:r lr~:J'PJ"f £lTh(}i: days from the occurrence of any of the
£l{iYif ~1 aP{)1' oo~l11 hflflr:- events specified under sub-article (I) of
this Article.
3/ No closure certificate shall be issued until
rl rmS: r~V1'1rc; rhlJflfL 1'£l:P1 the provisions pertaining to health, safety
r01J.ooflhi: f:1 ;J~fUt ooti:rth. and the environment have been addressed.
rT(}fI1TaP oolf~ lJATl;J1m £l{)T~C
r0iJ6f:1 ooll;Jr rcr{)nC (JJl~7'-
h~(}1'cr: :
4/ The grant of mine closurecertificatein no
{il rOlJIJf:1 ooll;Jr rcr{)nC (JJl~r oo(} way relieves the licensee from the
mi:: f1flL:P~ 1 rOTJlJY:.,.P&' hTtI;J responsibility to monitor environmental
£l11\ £lhlJf1fLaP I\~ 1l'~CfI ()flO1J. effects after cloSure of the mine as required
"f/\aP T 1\h if r h lJf1fLTltlJif ~cr10fJaP in the environmental impact assessment
£lD1lm~~aP oolPlr nTrA rOTJY:l~ and shall not release the licensee from the
;)I\k'1i:1 flOTJc;TaPcr 0011Y: h'{)~ liability of performing the 'duties imposed
laPcr ! aP(r ~,+ fl~r£l7'- 'Ub r01J.' upon him and due to be performed during
{)hrl\TaP1 ~~:J'fU"f hooL~crcr '1~ the term of the license.
h'~C1aPcr: :

~I. f.J.~f: (}~aP q{V»Anrt ODlj:~ 62. Remedial Powers of the Licensin2 Authority
(lrot JWAnrl 1/ In the event the holder of a license is
{il f1flL:P~ r"'T h1~1f'1 (JJ~cr 1l1~ deceased, cannot be traced, or in the case a
lJA:ffl. (JJ~cr 1rf11, 0.1f1\ vAaPc;aP company ceases to exist or has been
lJhToo (JJ~cr £ll111&. hT tI;J L:P Y: liquidated, the Licensing Authority may
(}~aP f1flPAfI11 TQ;\.OTJ& 11nftr take the necessary measures to prevent
h1~~~C(} flOlJf:l~ h{)LI\'l. rlf.,. further pollution or to make the area safe.
hCcrJlfU"f1 ~()~A::
II £ltLV h 1~1\ £l1o.{) h 1~1\ (li) 2/ The measures contemplated in sub-article
rToofthTaP1 P &. ftoo{)&.r
r01J.,{)LA1aP 11t111 f1flL:P~ fltLV (1) of this Article shall be funded from the
+~f1C 11tto lJiflaP (JJ~cr fltLV .,..~~ financial provision established by the
rT~oom 11t111 hfbfl (JJ~cr £l4: lJAIf'1 holder of the license or, if there is no such
fltLlr .,.~~ h001~P7'- ~crJl 0.7'- provision or. it is inadequate, from money
hToo~£l 11t111 I\~ (JJ~ T ~C1 appropriated by government treasury for
~lP&.A:: >
that purpose.
'Ii\' ~jUlf~r ~&-t\ '1?t.T ?H.1Il~1'C '!il; dt9"A. tt~ .,., liU '}.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 ... page 5423

PART EIGHT
ROYALTY. INCOME TAX AND OTHER
FINANCIAL REGIME

Xf
~_. C:5'A~ 63. Royalty
~I r01Jo~1 OTJlJOlTPIr f1f\&..4>~ r+oo
1/ The holder of a mining license shall pay
l+or1 tTiJo~1 £11a,J~AarorlJ'
royalty based on the sales price of the
Onm£1T cp;J I\~ £1tLU h 14>?\ 1(}{} r- commercial transactions of the minerals
h14>?\ (~ he; (E) OOlPlT COfA1: produced in accordance with sub-article (2)
~h~I\A::
and (3) of this Article.

~I (lh~+;;: ~l:q r01Jo~1 O1JlJOlT

p..:r
f1ft&..4> r01J.h&.ftor C',rAi: 2/ The amount of royalty payable by holders
£101J.h+ftoroom1 ~lYc;A:.' of large scale mining licenses shall be at
the following rate:
,V) (\h£1~ O1Jo~e;T t(lOD~
a). precious minerals 8%
ft) £1h&,Afth£1~ O1Jo~e;T Z"
b) semi-precious minerals 6%
eft) ftl1lT ~tr O1Jo~e;T (; "
c) metallic minerals 5%
00) ft~1~l1Tt O1Jo~e;T !i"
d) industrial minerals 4%
lP) ftl11l1Tlrn7i1 O1Jo~e;T E"
e) construction minerals 3%
l) ftQ;bor !i " f) salt 4%
n) ft1t~+C01JA ~ " g) geothermal 2%
EI £1ClUI\Ife; Oh~l1i';;: ~l:q r01Jo~1
3/ The amount of royalty payable by the
0119"l T Clft&..4>p..:r r01J.h&.ftor C' ,rft.i:
nom1 £1nAA fh7:r ~OJne;A:: holders of artisanal and small scale mining
licenses shall be at the rate fixed by the
lawsof the states. .

:tg. nom"} 64. Provisional Assessment of Royaltv

~,
~I ooh&.A rOtJ.. 1f1or1 rc:,rt\1; oom1 1/ In the event that it is impractical to assess
ftoo+oo1 £1011 ~:ft\OT 2ft. ilft&..4>~ the amount of any royalty, the licensee
'l.It,r1f rc:,rAi: h~,r ~h~I\A:: shall make a provisional payment of the
royalty.
2/ Wpen the amount of the royalty is
~I ooh&.A ,rft£1T C',rAi: oom1 (Ll;J1lJ' adcertained, the licensee shall pay any
f1ft~.4>~ A~~i:1 ~h~l\('\ OJ~lJO
balance or shall be repaid any excess sum
rh&.ftl& ht\k +oot\7i ~1Y1ft:rt\::
paid on such provisional assesSment.
EI &..4>~ OQ;t.or f1ft.t-»AlfJ1 +1ft lYe; 3/ The Licensing Authority may, in
0..,r17or O1J"};;:arlJOf1i\&..4>~r01J.m~
4>or1 rc: ,rAi: n~,r ftoo4>'1l1:ft'utor circumstances it deems appropriate, cause
ft01J1f\T (JJ~lJO ft01Jl14>lT h«7Jfll1 the reduction, suspension or waiver of the
I\ftor {'OO1a,JPT h...A 1/"11 £101J~1.11 payment of royalty by requesting the /

ft.,rl1OJ{)i ~:rI\A:: appropriate government body.

~(;. ~ 65. Income Tax

~/ t7ti1~or9" .rh~+~ ~l:q r01Jo~i lT79"
IT c1(\&'.4>~h01Jo~1 PIr h01J.,r1"for 1/ Arty holder of a large scale mining license
1ft £101Jo~1 1ft «7Jl1C hCP~ chlJ'C shall pay income tax in accordance with
2ElIfif1t(; (h1~+?i?ift) OOlPlT "'Ift the Mining Income Tax Proclamation No.
a,Jl1C ~h~I\A:: 53/1993 (as amended).
1~ gitilniil &..~&-&I."?~T ?lI.lll <IITC'!ig th9"l\. ti~ .,., liU 'U" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5424

g/ ~flUl\cec; ~n~l1i'~ ~l.;q ~O'/tJY:1 2/ Income tax to be paid by holders of

0'/9"l.r flfl&.!p/l."f hO'/tJY:1 /» t.
i

artisanal and small scale mining licenses

hOTJ.Y'I~r'In. ~OTJ.h~trr ~'In. DJl1C shall be determined by the laws of the
flhAA :n1"f ~moc;A:: states.
~Z.~ 66. Collection of Information
~/ &.!PY: 06];tar flfl/»Ann O'/~ar9" 1/ The Licensing Authority may, by notice in
flfl&.!pY: hC'YflA:ar h~Y .?C fli',rYW"1 writing, require any licensee to produce or
~tLU1 nP'f: Y:1.?'l.fD"f O'/hfl~1 ! make available any oral, written or
flO'/l..?'Irr O'/c;Tar19" ~!pA: ~)\'~~ .
electroniGinformation as may be required
m~9" ~i\.tbhrC''l.hl1 ovl.;q
to ensure the proper adherence to the
h 1-'lY4>Cl1 m~9" h 1-'l,rt\~ fl)\'Lr~
O'/Hll ~"fI\A:: provisions of this Proclamation with
respect to royalty.

g/ &.!PY: o~ar flfl/»Ann mLu n14>)\,

2/ The LicensingAuthoritymayissuean orderfor
1crl1 n14>)\, (li) ovlPlr ~OTJ.Yl1&.A~ conductinginvestigationin accordancewith
ovl.;qfD"f h 1~~4>C{l. m~9" h 1-'lm~
Article 54 of this Proclamation where it
i'~C'IPAl1fto (tY9"1 fltLU nP'f:
believes that informationrequired under sub-
n14>)\, !lg ovlPl.r 9"Covt. h1-'llJ'l.Y: article(I) of this Article is being withheldor
tlYll ~"fI\A:: destroyed.
~ C"~ Ai:'i f1(l "?-fiCill\l\oohL.A 67. Failure to Pay Royaltv and Income Tax
fll\L.:P~ oohL.A fll\Or 'l.tb o>-l1'r c:fA1: i
f1fi. "l-fiC (JJ~cr I1I1CJT(J}a19"M h~f
If a licensee fails to pay royalty, income tax or
«'\~h~A h.,.l i L.:P f: (}lili1.OJ'. fll\p.r Afll1 any other payment on the due date, the
fA+hL.ft- h~f?'"f +mCJ"'(J}ahhh.hL.ft- (JJ~cr Licensing Authority may by order prohibit the
h~fo>-1 l\ooL.'Acr flltfl1"fA OL.:Pf: (}lili1.(J}a disposal of any mineral from the mining area
fll\p.rAfll1 +"'fI~"r fl\(J}a H~ hl1h.oo~"f concerned, or from any other mining area held
f:ll1 1"~~ hlltool\h+o>- 11I11~(J}ar f11l10f:1
by the licensee until all outstanding payments
I1I1crl~ (I;)' (JJ~cr Ofll\L.:P~ h+ fH 1\.1\
f 11110f: 1 I1I1crl~ (I;)' cr19" h~ ., 11110
f: 1 r have been paid or until an arrangement has
h1~~"«'\CJ h1~~n'r OoohA1tA rO"l1 I\.(}'r been accepted by the Licensing Authority for
~"fI\A:: the payment thereof.
~~. f ovt.~h.&.~ 68. Rentals
~/ 0'/1~ar9" - flfl&.!pY: fl&.!p~ I\~ 1/ Any licensee shall pay annually in advance
. fli'ovflhi'ar hAA ~ovt.r h.t.~ surface rentals for the license area. The rate
fl~l}ov-t: fl<1'Y:OTJ.Y
~h~I\A:: ~h.t.~ of rentals shall be specified by laws to be
tlDffl1 hAfto"f flOTJ.ym'!lTar :n1"f 'issued by states and 'any amendment
~OTJ.m01 (J'Cj O'/C;Tar9" ~h.t.~1 thereto shall only apply to licenses issued
ovm1 ~OTJ.flarrr ~:nDJ O'/7i7iY 'i'&.~OTJ. after the date of amendment.
~OTJ.(J'~arO'/7i7iyar hmlTlflr 4>1 fl:).1\
flOTJ.nflr&.!P/l."f I\~ 1l~ ~(J'c;A::.
g/ 0'/1~ar9" flfl&.!pY: h&.!pY: hAA ar6J.1' 2/ Any licensee shall also pay annually in
flh.t.~ flYHar ovt.r fl~l}ov-t: advancea rental for the area coveredby a
fl<1'Y:OTJ.Yh.t.~ ~h~I\A:: ~h.t.~ lease. Such rental shall be fixed in the
ovm1 ~h.t.~ ovl1r fl+ovlPl.i'flr . instrument granting the lease and shall
n~Y: ~OTJ.mn1 (J'Cj fln~~ arl1rr remain fixed during its term, unless the
i' !Pt.'l. l1~9"~r htbfl fll1i'4>C hl1h instrument provides otherwise. i

h.t.~ Hov1 ov~l.7i ~~c; ~(J'c;A::

~i!. (Ifl&.!PY:p~.f
69. License Fees
fltLU nP'f: ovlPl. r ttOTJ.nfir &.!P/l."fc;
License fees shall be paid for the issuance and
&.!P/l.~1 flO'/t\~l1 ~&.!PY: h~Y ~h&.I\A::
renewal of licenses in accordance with this
~h~Yar ovm1c; ~nh~&.tr rr'l.:t'
h1~nDJfl{l. fl~111c; flhAA :n1"f .emnc;A:: Proclamation. The amount and manner of payment
of such fees shall be determined by regulation and
the laws of states as appropriate.
.. ~J(jf6~ ~U\ ";1&-r ;11L1Il4I,.C !7~ dl9"i\. r: +, lit., '.9" . F;ederalNegarit Gazeta No. 45 4thAugust, 2010 page 5425

Ct. - n .
70. Government Participation
. oo'~PT OlltJ htp,/: ",+1\ ~ oorPl.T Without prejudice to its right to undertake
ftIfJlJ1:' P~PJ"f ftIfJ"''t1: ooft1: mining operations under Article 8 of this
"'y"rf'mO+ If«f OtIfJ~l&sP'. I1ft..L,4»1: Proclamation, the government may acquire
hOlJ."''t1: f h '1i1rf'~ ro~sP'.. fh~+~ Y..1.:4 without cost a participation interest of five
ftIfJlJ1:' tlfJsP'I.T P~PJ"f h.,nilToo'T percent of any large scale or small scale mining
hilh hsP'ilT 000'" fOlJ.Y..CiI htutf-' investment: An additional equity participation
fftsP"sP' h~f' h.~11 ~"f"A:: "'JlO-sP'. of the gov~rninent may also be 'provided by
ilft1:C?iar oo.,.~! ilfthh~..Lfta! hrf'C\TC: L agreement, which shall specify the percentage,
ilftOlJ.oo'1~T ooftTe; ~~:rPJ"f "e;
Ibfto"f frf'C\TC: l1Cl1C o-'1,,:rJU"f timing, financing, resulting rights and
OhsP'sP''1T ODtro(l"w. OurPl.T oo1~PT , obligation and , other details of
I such
rf'Q;\.01J&hhfLf-«f"f, ft.~ 11 ~"f"A:: participation.
71. Guarantee
. Ctli. ~
..L,4»1:(I(J;tar I1ftpAII1' ..L,4»1:"'Jl(}mar .The Licensirig Authority may require the
ro~sP' ,,'Jl:rY..ilftT rog,sP' ..L,4»1: .~pplicantfor a license or renewal or for the
fttIfJilrf'''ft~! "ooAI. ~ ro~sP' OlJA fttIfJilfl1 transfer, assignment or encumbrance of a
fOlJ.m.f,~ hooA"'"f ft~~:rPJ:r:oolJ.sP' license to provide 'cash, bank or other guarantee
tlfJl.:J16li. fOlJ.If' f1'"ft! fl1'h ro.f,sP' to secure the applicant's obligati()ns. The
Ib" tpilTe; h'Jlf4'Cft ft.fY..C~ ~"f"A:: 'iqondition~ of such gnaranteeshall be
tpilTe; f01J..mf~OT' o-'1,,:r {)oooo&f determined by directive.
.f,ro(le; A::

Ctl.~ 72. Exchan2e Control

iiI roY..ar6J}>fOlJ.""" tlfJlJ1:e;T ftrtfooCT 1/ A holder of large-scale or small-scale
fh~rf'~' ro~sP' fh'1i1rf'~Y..I.:4 ftIfJlJ1:' mining license producing exportable
tlfJsP'1.T P ~ I1ft..L,4»
1: O(&6J}>sP',tt& minerals may retain a pOrtionof foreign
""1ar f7if6J}> 10. aril'l' Oh.Tf-K'f curroo~eamingasmaybeooremined~
.ftch.~'f l1,h oooo&f ftrtro(l' 1:C?i
. dir~ctives of the National Bank,of Ethiopia
000 fl1 Oar6J}> sP',tt& . ftOlJ...LRoo-
and use it for settlement of transactions in
h~fPJ"f tun+sP'O.r ~"f"~::
{oreign currencies.
'

. ;\
, .
. ,
'1/f(&6J}> I1ft(}ftT flf'1' fhfj:rf'~ ro~sP'
fh'1i1rf'~ Y..1.:4 ftIfJlJ1:' tIfJ~I.T P~ 2i A foreign investor holding a large-scale or
I1ftU 1: fOlJ.hrf'frT' h~f PJ"f roY.. small-scale. mining license may make the
h. Tf-W f 11i11110T f(&6J}> sP',tt& following remittances out of, Ethiopia in
£J.f,'1T ro~sP' Olb". Orf'..L4'Y..'f(&6J}> 'the currency of investment or in an
sP',tt& lI(&(&?Otrtl.R~OT4" I1ft(& approved currency at the prevaili1'1grate of
fsP',tt& rf'oo'ObtPI.T hh.Tf-K'f exchange on the date of re1l1ittarice:
ar~ fttIfJlJroC.f,"f"A:. "

lJ) htIfJlJ1:' P~ h.,nilToo'T "'1; a) profits and dividends accruing from

:rA frf'11 TC~e; fTC~ 1:C?i! mining investment;
'ft)h(&6J}> h1G Oft1:C. f0lJ.1~ tpe; b) principal and, interest on a. foreign
,'"11e; cDft1:! loan; .'
ch)htIfJlJ1:'P~(J}o,:JC ~'1-T I1ft(& c) fees, royalties or other payments
f-th«ffto:4., oJ~sP' f F ~ hoo~C accruing pursuant to technology or
ilsP'sP''1TsP'h'fT fOlJ.h..Lfr"" managementagreementrelatingto the
(I"f ! 'I'~qo"f ro.f,sP' fbfto"f h~f mininginvestment;
PJ"f! '

00) ftIfJlJt:' P~ 1:C'/:+ ..LC(a 'LC\O- d) proceeds from the liquidation of a

(L1I1~ f0lJ.1~ 'In.!
.
/ mining business enterprise;
1~ gitgffl ~Y..&-~.,?&+ ?lLlIJ4I...C!;~ d.9"ft.fg .,., lill ,.,.. Federal Negarit Gazeta No. 45 4lbAugust,2010 page 5426

lP) htu'lP-1 "V1C c&(}~ I1"Vl1T (})1 e) payment from the sale or transfer of
CDC CD~cr tti'i1J' CD~cr rOTJlJ1:1 shares of a mining investment or
lI&.ar nh~A CD~cr n~fta nV1C acquisition in part or in whole of a
arll~ Q"Vl1T 11"n.T"T FC
tt~le7J r+17 111111::' mining operation by a domestic
investor.
fl nOTJlJ1:1 F&.ar c&1I~ +~~lc&
31 Expatriates employed in mining ~perations
r01J.O<'
./ rar'"L'" V1C ti.1"f f1J.T1 may remit salaries and other payments in
K'ooCDlIc; Ibf\o"f tJ~fSD"f he7JCll1 11"~
rc&'"L'" cr1lJ& ~111 n01J.&.-l'~c& oolP
accordance with the relevant exchange
lTro~ ar'"L'"h1C "oot\tJ ~"ft\fta:: regulations.

(:f. .,.cr<.h~l Cj h , "001f1 73. Exemptionfrom Customs Duties and Taxes

.

~I OTJ1~arcr rcrcoo&. 11"&..4"1: CD~cr 1/ Any consumables, equipment, machinery

rhC(). +*&''"L'" "1I&'c& r01J.fll&.A.,.c; and vehicles that any holder of an
nfJ~~ar r F&. T~e7J&.cr oolPlT exploration license or his contractor may
hc&'"L'" h1C CD~ h. TP-Wf r01J.fll import into Ethiopia and required for its
"19.Tar ht\ct lJ.4"SD"f-: oo'1&fSD"f-: operations in 'accordancewith the approved
OTJ7i.,&SD"fhCj + 7ihClJ&SD"f h.,.cr<.tJ work program shall be exempted from
~l.~c; ;f'tJlI ." ~lfc;fta:: customs d~ties and taxes.
~I OTJ1~arcr rh"lI+~ CD~cr rh~+~ 21 Any equipment, machinery and vehicles
~l;q rOTJlJ1:1 OTJcrlT 11"&..4"1:CD~cr that any holder of a small scale or large
rhCO: +*&''"L'" "F&.ar r01J.fll&.A.,.c; scale mining licenseor his contractormay
nfJ~~ar rll&. T~e7J&.cr oolPlT import into Ethiopia and requiredto start
har'"L'" h1C CD~ h. TP-Wf r01J.fll the mining operation in accordancewith
111Tc& rOTJcrlTF&'C&1 "oo'1.ooC the approved work program shall be
r01J.fll"ffta oo'1&fSD"f -: OTJ7i.,&SD"fc; exempted from customs duties and taxes.
+7ihClJ&SD"f h.,.cr<.tJ ~l~c; :t'tJlI ."
~lfc;fta: :
fl rh"lI+~ CD~cr rh~T~~l;q rOTJlJ1:1 31 The holder of a small scale or large scale
OTJcrlT 11"&..4"1: "'e7J1: nrr., oom1 mining license may import free of customs
rcrcT F&.ar1 "OTJlI'1.ooC "00'1.00 duties consumables required to start and
&fSD~ 'l'lIT CD&.T ILf(}&.c& r01J."fA sustain commercial production for the first
OTJc;:fC&1cr ht\ct lJ.4"SD"f h.,.cr<.tJ three months.
~l~c; :t'tJlI ." OTJ1I111T~"ft\A::
4/ The holder of a small scale or large scale
gl rh"lI+~ (jj~cr rh~+~ ~l:4 rOTJlJ1:1 mining license who wishes to embark on a
OTJcrlT 11"&..4"1:rcrcT F&'c&1 nt\~ major mine production expansion shall have the
~l:4 "OTJlI4.4.T tt&.A e7Jc;rOTJlI4.~fc& right to import free of customs duties and taxes
h-l'1: n&..4"1: (}~c& I1"FAII11 equipment and machinery .needed for the
(}J\1:-l' "OTJlI4.~f F &.ar r01J.fll&.A.,. expansion provided that the Licensing
ooUJ&fSD"fC; OTJ7i.,&SD"f1 h.,.cr<.h Authority has approved the expansion program.
~l~c; ;f'tJlI ." OTJ1I111T~"ft\A::
(;1 rl1u4't'l! -: rh"lI+~c; rh~+~ ~l:4
rOTJlJ1:1 OTJcrlT 11"~P."f -: n&..4"~ 51 The holder of artisanal mining license,
Tar oolPlT fool;l:Tar1 OTJlJ1:c;T small scale mining license or large scale
CD~ ar'"L'" ttA~ hll&.t\~ar r.,.cr<.tJc; mining license shall be entitled to export
rl11tJ 6:COTJIL1: OTJ01).t\T h1~+mn~
free of customs duties and taxes minerals
IfCj hOTJc;:farcr r.,.SJD<.tJ ~l~c; ;f'tJlI produced according to the license.
." ~rrCj fta::
'61 The holder of artisanal mining license or
II rl1ut\1! OTJlJ1:1 OTJcrlT 11"&..4"1: the holder of any construction minerals
CD~cr hi'i" CD~cr 1l;111: "OTJcrlT mining license issued for the mining of
r01J.fll"fA &..4"1: f"c& OTJ~c&cr sand or selected materials shall not be
rtl111T&.tJ7i1 OTJlJ1:1aIlcrlT 11"&..4"1: entitled to exemptions from customs duties
ntlu h1~?\ h1D-1I h1~?\ (Ii) hllh (m and taxes under sub-articles(1) to (4) of
r+oo"h1:T r.,.cr<.tJ ~l~c; ;f'tJlI ." this Article.
ool1T +m.4"01J. hm1cr::
.,~ ~it§na t.,Y..6-&\ .,?~-}o ?If.fIJ <#I1'Cij~ dt9"1b t;~ +1 Ii'i.il <}.9"
Federal Negarit Gazeta No, 45 41hAugust, 2010 ';" page 5427

~I 011C;~a>-~otttJ h1~7\ 00 lP lor 7/ Any item imported free.of customs duties and
h'1'~?n ~l1'C; ;t-n{) ~, (fCj ~1f1 6~ taxes into Ethiopia pursuant to the provisions of
~~~ n~(& f1ftP'(,\1I11 O~~Dtf this Article may not be sold in Ethiopia without
,,~~~~C; i'1fla>- ~~~?n ~1o1'C; having obtained permission from;the Licensing
;t-n{) "~h~('\Or h~o1'~:: (fCj~ Authority and paid the required duties and
6~a>- i'oo(,\(t hV1C ~Dt(J)lI1 h(f~ taxes; provided however, that such item may be
h'1'~?n ~1o1'C;;t-n{) ~, ~(fC;(,\:: re-exported free of customsduties and taxes.

@. ftf1ftL p.":f ~1f'lf1C; ftc&h C; 74. Re2istration and Reoresentation

~I 0111~C&~ f1ft~~~ h'1f111 f1fta>- 1/ Any licensee sh~ be registered in the
f1P'('\1I11 H1~ 01'1~ 0011111 It~ registry of trade with the appropriate
~00001l111C; ft~~ ~ H001 Oh.rr-A' f authority and shall maintain an office in
c&{)1' 7\;n~r o.r, ~011**lJD '1~;t- Ethiopia during the entire term of the
.

hftOr: : license.
II f1ft~~~ O~~~ It~ ~i'oofth-f:r1 2/ A licensee shall not be requiredto obtain
0116f:5r ft011~lorT ftooo1' (J)~~ any other authorizationor permissionfrom
(J)~c&6J.b h'lC ftooltn (J)~~ ftP'&.PJ=F any other governmentoffice in order to
h{)~It'l. ~(f'" 6~ PJ"f1 (J)~ h1C a>-{)1' produce, sell or export minerals covered by
ft011{)1f1r (J)~~ ~hh~~ P'&.PJ"f1 the license or to import any-goods or enter
OC&(,\ ft011e6J1r hfblt ~001e6Jp'r into contract for the acquisition of license
ooP'tf o.r ~~~ hf{)~(,\1a>-~:: of any..intellectual property required for
mining operations.

rl ~tttJ h1~7\ 1CJ.{) h1~7\ (I) ~1:J'l" 3/ The provisions of sub-article (2) of this
- ~f1ft~~~ 1 ~'1'~?nC; ~f11n 6:C011 Article shall not relive a licensee from
lli:PJ"f ~011DJ.ltre6J~;t- hf{)~C~:: complying with obligations vyith customs
and bank formalities.

{tl;. (lftoo1jPt 1:.:J~

75. Government Assistance

~I 001e6Jp'r: - 1/ The government may provide incentives

and assistance to:

V) ~V1t-f:1 (J)~;t-lf O11tJO&.lfC;

h.pCjDtflf "fe6J~"f1 ftoo~;t-r a) mining operations that deemed to be
h'lli ftDtf~C~ ~0116~1 P'&.PJ"fI vitally important in addressing the
immediate. socio-economic problems
of the country;
ft) 0116~C;r1 00110(,\)\ e6J OV1C a>-{)1'
i'm~O'l. ~r1 ftO'l.f{)~~ ~01161:1 b) mining operations that promote the
P'&.PJ"fI hC; domestic utilizations of the resource
produced through processing or
beneficiation~ and
ch) O'111lor P'&. 011'10&.r ftDthC;(J)~ -, . c) artisanal. mining carried out by
f1Ultlf ~OTJ6~1 P'&.PJ"fI cooperatives.
0110l;t-:fC; 1::J~ llf~C'1 ~"flt('\::
II ~01101o;t-~a>-C; ~~:J~ o,~~rC; lr'l.;t- 2/ The type and mode of incentives and
~01161:1 p'&.C&1 oolPlr f~lo'l (fCj assistance shall depend on the nature of the
O~111 ~(J)nC;t:\:: mining operations and shall be prescribed
by regulation.
1R' j; liJlf8'~ t...Y..&-1A'1?t:t- ?tI."l ~'f'C ~j; di9"1b 1;~ +, Ij'U 'i-.9" Federal Negarit Gazeta No. 45 4th August, 2010 page 5428

{:!. !too"1qq.y.1'-1 faoofJ: T 76. Settlement of Dispute

~/ rOTJIJY:1 ~~T: 9"COOt-: .etl OO~r-r 1/ Any dispute, controversy or claim between
m.e9" OTJ9"1.-r1 hTOI?fthT {}9"9"~-r the Licensing Authority and a licensee
Ooo~Q;\.: fl{}9"9"~-I: hTl.~""~: ooflJ{}
arising out of, or relating to an agreement
m.e9" oo*l.£f' 9"h1'-r m.e'r hh~tLo- for reconnaissance, exploration, retention
;JC 01"'1} 9"h1Y.y.1'- Ooo1"1P-rc;
or mining, or the interpretation, breach or
Oqft&..4»Y:ool-Jh6\ r01J.&.mC OTJ~m:,9" tennination thereof shall, to the extent
hChC: hfaoo"1qq-r m.e9" r.e1(}~6\
possible, be resolved through negotiation.
l' ,4: OT;rfa oom1 O.?t- (&.e.e-r
.e&.:1'6\::
2/ In the event that agreement can not be
f/ 1-~~ O;J&- ar .e.e-r 1L&..:1' I-JA;rft
0{}9"9"~1: OP{}1' OTODfth'h& P~ reached through negotiations, the case shall
PCo,-r oolPl.-r 0"16\"16\ ~~~T :1'.erf be settled by arbitration in accordance with
.emoc;6\:: 0"16\"16\ ~~~-r f01J.omar the procedures specified in the agreement.
OPtt~ rooQ;\.l?ic; OTCPCP.em1c:'1'- I\.e An arbitral award shall be final and
r?c; .elfc;6\:: binding upon the parties.
r/ OJA ~ ~.,:,. (J~om~
(JOJA ~...). :"C rrf' 3/ Any party aggrieved by the decision of the
01 tPJ,}~~'r w1'} :,.~~~'} l\~ODl\h arbitration may lodge an appeal to the
.,.~ ~c.(- 0.:" .eOJq~ h'}-\~.el\:" concerned court. .
"7:"~1l .e+"A::
~. 1: ODrflT OD~ " 77. Termination of Minin2 Ri2hts
~/ f &..4»~0011-r:- 11 Mining rights shall terminate if:
V) q'fa&..4»~ r &..4»~'} h6\6\ 0l7D'ft- a) a licensee relinquishes the whole area
c't.fa~ m.e9" r &.fPY: 0011-1:1 or surrenders the license~
c't.Tc&I
b) a license is revoked by the Licensing
fa) mlu hCP1::. 0~1n1'-c; OooootY Authority pursuant to the provisions
fD1'- oolPl-r &..4'~ 0&..4'Y: of this Proclamation, regulations and
O"lar qfap6\«1'} c't.Ol111 directives~
ch) r &..4'~ Hoo, hT&.?oo 01.1\ c) a license expires without being
l\.e:1' ~ {} c'l~CI (J)J!,lJO renewed~or
00) rmt-i"i1'- 0011-r h1~TmO~ If'i d) without prejudice to the rights of heirs,
qfa&..4»~ c't.qo-r m.e9" qfa&..4»~ a licensee dies, or where the licensee is
r1"1Y: Y:C1:-I: hlf~ c'l&.C{} m.e9"
roohoc OPtt'!. c't.01'OrI
a juridical person, it is liquidatedor
declaredbankrupt. .
.e*lfll6\: :

2/ Upon tennination of mining rights of the

f/ O{}9"9"~r Ofbl\ O-~:1' I1AT1fa~ O~C holder of a small scale Qr large scale
rh~{}T~ m.e9" rhfJ:T~ ~l:q rOTJIJY:1 mining license, the government may,
OTJ'rl -r P t- &..4'Y: c't. l1' ftOTJ
IJY:1 * unless an agreement specifies otherwise,
P t-fD1'- 1'~9" I\.e O1-ftCD'rhC1:c; acquire all of the immovable and movable
~c;?iTar l7D'ft- 0l7D'ft- Y6\T&,)\ooar1 property used in the mining operations at a
rOTJ,e1~tt~~c; T1~tt.4'1i 111lrfT
price equal to the then unamortized value
Oqft&..4'~ r'i Vfl1 0011111 I\.e 001J.:1' of such assets, as shown in the financial
rar 'I';JTOP 001"1PT fLm{}J1Tar
book of accounts of the licensee. If the
.e1'-I\6\:: oo'"1P-r OtLU 00111: I-)AT
m~OD qft&..4»~ h"1l111 ql\T(J}o dt'JoT government does .not exercise such right,
oolPl-r 111lrf~1 ftt\l\ OOP 1l'{}T the licensee shall be free to dispose such
1\6\fJ: .e1'-I\6\:: .eu rOTJ.e1f1 hlf~ (}f\ assets to another person in accordance with
hI1Q!l.OP 1'0.4' O'll1Tar "1~;rfD"f the applicable laws, or otherwise he shall
oolPl-r h1-'l'{)m"1~Tar .e1~~6\:: be obliged to remove them as required by
his environmental obligations.
.,1; ~itllfl£'jj I...Y..MA'1;J6T ;Jlf.lTI4r'f'C ~~ dJ",h, tt~ +, liU 't.S'" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5429

rl ri't~{}i'~ m~cr rhlJ:i'~ rOTJoY:1 3/ The licensee shall be required on

tiDllT lL*l'1' 0~~Y:'i ottt.,e i'~tt termination of a small scale or large scale
O~Olar n:J" r01J.1~ ~~~~'f'i fbfto'f mining license, to fence and safeguard to
p t.fP'f flOfP'f m.1~T : :tt,emT'i the satisfaction of the Licensing Authority,
11llT ".e i'tY.;J h1~f{}hT~ &.~Y: any pits and such other works in the license
O{;l;1.l&Cll\pAtTJ1 i't'}';Jfl ~ar llfto or lease area so that the health, life and
001J.4>01\ari't1J.:11.Cll\&.~~ h1-'tf'1' property of persons may not be
t.Tar'i onhl\hY h1-'tfO~"Tor ~1Y. endangered.
~A::
PART NINE
}1lJ:A"m~
MISCELLANEOUS PROVISIONS
~
78. Penalty
{:~. ~tTJT
0IJ1~arcr oar:. .
Any person who:

6.1 OtLV i'tCP~ i't1.,.?\, ~Z onLPlT ri'om1 11 contravenes or fails to comply with an
Tol111 htTJo m.ecr I-J"hOl m~cr h 1 order given under Article 67 of this
-'tV fl\ Tol111 onomi:1'i OTOl1~cr Proclamation or, while being aware of such
onLPlT OIJoY:~1 onO'1' ri'hl\hl\ order, receives a mineral the disposal of
onlf~1 hfm.,. OIJoY:1hi'.,.OI\I which is prohibited by the order~

fl ~V1 i'tCP~: Y.11l1: onontf1 m~cr 2/ contravenesor fails to comply with any
r &.~Y: UJ~:J'fP'f1 htTJO m~cr provisionof this Proclamation,regulation,
I-J"hOlI m~cr directiveor the terms and conditionsof a
license~ or

tl OtLV i'tCP~: 0Y.111 m~cr {lonontf 3/ submits inaccurate or misleading

onLPlT on~lll I-JI\ClTar ~~r-'f ;JC information in connection with any matter
Oi' f ftt TtrtrA .rAIf~ m~cr requjIed to be submitted under this
r01J.fl\{}T onl;q i't~cn hi'17: Proclamation, regulation or directive~
h{}h llC Ita. D01J.Y.C{}r11t11l on"'{;Iib shall, be pwrished with a fme up to BiIT200,000 or
m~cr h{}h i'tcr{}T i'tonT 001J.Y.C{}
h{}t.T an imprisonmentup to five years or both.
m~cr flrrfti:cr ~.,.tTJA::
--------

91 fH.U i't1+iJ 1(}-fI h1+iJ ItI 1:1;J~ 4/ Notwithistandingthe provisions of sub-article (3)
II ~c~ fll\1'~-r I.l~C; l\hf1~1~ of this Article, the degrce of offence and the
extent of penalty to eacQ. offence shall be
I.l~ f0?'11)CD-:"tlJ-r .eU1 h"~ detennined by regulation to be issued for the
l\ tPJfI~8~ Oo?'OJIlJ 1.111 .eOJ()C;A:; implementationof this Proclamation.

. {:jj. {ll\tiP:f' i'ttt.lll 79. Appeal Procedures

6.1 OtLU .i'tCP~ onlPlT Oi'om i't{}i'~Y.t.1! 1/ Any person who is aggrieved by any
arl\~ ~C r+07 OIJ~arcr oar
administrative decision of the Licensing
~ iP:J'c&1 or y.l;qar 1\01J.11- r &.~Y:
Authority pursuant to this Proclamation
o~ar C1l\pAlTI1 ')"~fP'f 0IJ,pl.1l
~'f"A: : may apply to the officials of the Licensing
Authority hierarchically.
fl 0IJ1~arcr oar miv i't'}"'?\' 1(}{}
2/ No person may apply to the competent
i't1.,.?\, (li) onLPlT fli'om i't{}i'~Y.t.1! court for the review. of an administrative
arl\~ ,,~ ~'?Cl~ h'}Jt:J'~I\T ftlJ:CY:
{\,T OIJ~lll r01J.'fl\ar o&.~Y: o~ar decision contemplated in sub-article (1) of
Cll\pAtTJ1 ffta i't{}+~Y.t.1! onlJ:Tm. this Article until he has exhausted the
fP'f O~fta i'Oj.mor I-J1\<h 0:1" ~or:: administrative remedies with the Licensing
Authority.
'K' ~ll!lf0 /..~&-IA '1P&-1'?fLiIJ <II'I'C~~ tlt9"'/\.tt: .", Ii'll 'U" Federal Negarit Gazeta No. 45 41hAugust, 2010,.,. page 5430

it. fll\ta~ ta&.1t.KSJB 80. ImDlementation of the Proclamation

~I f'01J.'t{}rC:"f SJBtlC f\.r ~U11 taP"/: 1/ The Council of Ministers may issue
001J.1(} l\01J{}&.KSJBf'01J.f{}&.A". ~ 1n"f1 regulations necessary for the proper
ft.frol1l ~"fl\A:: implementation of this Proclamation.
~/. 01J.'t{}i;? ~U1' taP"/:C; mtu ta1cf>?\ 2/ The Ministry may issue directives
1~{} h1cf>?\ (li) OOlPl.r f'ro~-- necessaryfor the properimplementationof
~ 1n"f1 001J.1(} ft01J{}&.KSJBf'01J.Y{}&.A 'f this Proclamation and regulations issued
0000tY?J"f1 ft.fro«l ~"fl\A:: pursuant to sub-article (1) of this Article.
EI &.~1: olili1,.ar (}l\p A111 1 l\1:C1:C 3/ The Licensing Authority may prepare
/'
oo.,?i f'01J.(f1 qo~A f'01J61:1 {}SJBcr"r model mining agreements to serve as basis
ft.Y";J"/: ~"fl\A:: for negotiation.
§I &.~1: o~ar (}l\pA11l1 ~u taP'/:: 4/ The Licensing Authority shall have the
~1n"fc; ooootf?J"f OrtitiA OP&' power to follow up and ensure the proper
I\~ ooPI\Tar1 f'ooh;J'rf'AC; f'00~11l implementation of the provisions of this
mC pA11l1 rf'o'1'rf;J'A:: Proclamation, regulations ~d directives.

81. TransitorI Provisions

~I ~u taP"/: OP &. I\~ hooPfr Okr 1/ Any license or mining agreement issued or
f'rf'om &.~1: ro~cr f'rf'~1.1 f'01J61:1 concluded prior to the coming into force of this
{}SJBSJB"rhtlu taP'/: ;JC ~{}l}Arf'~l." Proclamation shall, in so far as it is consistent
1:1.{} K1rf l\01J.~.eOr cf>t "001 rf'&.~ with this Proclamation,continue in force for the
01J..,1: ~cf>1'I\A:: htlfcr OtlU taP'/: remaining period of its validity; and thereafter,
1:1;J~?J"f OOlPl.r ft.;J'~{} ~"fl\A:: it may be renewed in accordance with the
provisions of this Proclama\ion.
2/ Notwithstandingthe provisions of sub-article(I)
gl ffl.U h1~iJ 'Jo-fa h1~iJ /~/ 1:1:J'! of this Article, according to the appropriate
flliC,.. h11.~CD- OJ11 hOJfll1 flf\CD- agreement where a party undertaking a mineral
fa,..,...,:" ho!'ft}dt.1.CD- ffllJlJ1:1 fa~ activity the benefit of which sustains damage
due to this Proclamation, up on the request of
Oo!,11 CD- 1':,.,.. ~.e Ofl.U hlfJ~ the other party under damage, both parties may
,

,..h1 f:" ".~ :,. f I.lfl " 1 1.0''' ".~ :,. agree to make the necessary correction in good
f I.lflO:" OJ11 f\tn.e:" ~f\~ OJ1li"f faith mutual discussions.
0:"1 Ant; i'OJf .ei'CD- hfa4A~CD-1
fIIJ{Ii' t}h f f\fIIJ1: l ~ ILfafIIJ
00- .e"f~ It-::
3/ Any cause of action created or legal
EI ~u taP'/: OP&' I\~ hooPfr Okr proceedingstartedbefore the coming into
f'rf'&.ml. l\tI{} oo.,?i f'01J.(f1 ".,q~ force of this Proclamationshall be dealt
.

ro~SJB. f'rf':lool. f'tlCtiC ro~cr with in accordancewith the laws in force

f'ta&.~KSJBl/.~r ~u taP'/: OP&' I\~
hooPfr Okr K1rf'ar O.,O? fh1"f prior to the effective date of this
Proclamation.
oolPl.r €i:~01J. f1"l'/'A::

y~. f'+?i?CJ 1.1+ar f' ~V" fh1-"f 82. ReDealand Savin2s

~I f'01J61:1 taP'/: ck'1'C j~/Ijjritl; (~1~ 1/ The Mining ProclamationNo. 52/1993(as
?i?ift)OtlU taP'/: rf'1i~A:: amended)is herebyrepealed.

~I f'tlU1 taP'/: 1:1;J~?J"f f'0iJ.~1.1 01J1"l'/' 2/ No law, regulation, directive or practice

arSJB fhOj: ~11F ooootf ro~SJB f'tao shall,in so far as theyare inconsistentwith
&.C ASJB 1: OtlU' tap"f: ar{}'1' f'rf'n&. this Proclamation, be applicable with
-"r1 ".,qV""f 001J.00t\hr rf'&.~01J."r respect to matters provided for in this
ta~cr l.arSJB:: Proclamation.
'l~' GltU0/i ~Y.&-IA '1?&.}- ?lI.fll <IITC !1?";th9"h, f:t .,.'} fiUl ~.9" Federal Negarit Gazeta No. 45 4thAugust, 2010 page 5431

r/ rtPJ6Y:1 P&.fU'f r01J.t{)TC:'f 9"nC 3/ The provisions of the Mining Operations

ftr ~111 <h1'C lifitg/liifit~ Y:1;J Council of Ministers Regulation No.
'lfU'f rttu1 hP1; Y:1;J'lfU'f h{)'-'t.\ 182/1994 shall, in so far as they are
T.4»l ~ Y:l{) ottu hP1; UDlPlT OO1J. consistent with this Proclamation, remain
(DflI ~ 111 h{)h01J.T tJ. Y:l{) T &.7.01J. in force until replaced by regulation issued
) :rTc& .e~1't\t.\:: pursuant to this Proclamation.

itr.~ 83. Effective Date

.eu I\"~ nd."'~A ):Jt+ :JII.".~+fO This Proclamationshall enter into force up on
hcp".n+ +, ~,.c r6'1 .et1'1An the date of publicationin the Federal Negarit
Gazeta.
1\...,.MildrA." +, litl ,.,.
Done at Addis Ababa, this 4th day of August; 2010
~C"7 IDAY..1.r-C1.iI

r h. '-"'r-A'
~ t.J.~t\ If -'l'l"h~f\~If GIRMA WOLDEGIORGIS
6T11t\.h T~Il~1'-'" /

PRESIDENT OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETHIOPIA

"
 '"

IllC'I1LJ (\1\9" DrJi'D<J.f1:C;t::,. I