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February 16 2009
PUBLIC STATEMENT
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Ministry of Mines and Energy, Addis Ababa

April 27, 2007
News Release

Seven Companies are short listed for Calub and Hilala Gas Development.

It is to be recalled that the Ministry of Mines and Energy has terminated the Petroleum Development Agreement with SIL Ethiopia, for Calub and Hilala gas fields, located in the Somali National Regional State. Due to this fact the Ministry has started the tendering process.

The Ministry had made announcement on March 18/2006 in the Ethiopia Herald Newspaper, to invite Companies for an expression of interest, to develop the calub & Hilala gas fields. Based on this announcement 16 Companies have submitted Letters of interest to the Ministry. Accordingly, the Ministry evaluated the documents and has short listed seven companies. Currently, the Ministry expects the companies to submit their technical and financial details. So far, no award is given to any companies. So, it is too early to notify the final result. It would be notified after the bid evaluation is completed.

At this juncture, the Ministry of Mines and Energy would like to confirm that there is reliable peace in the region. The potential investors should not be disturbed by the vain statement issued by the Ogaden National Liberation Front /ONLF/. Companies can work freely in the Area. The Government will give full support for those who will be involving in the development activities of the Calub and Hilala gas fields and the surrounding area.


Ministry of Mines and EnergyAddis Ababa


March 29,2006
Press Release
 Petroleum Production sharing Agreement signed

The Ministry of Mines and Energy has signed an agreement with Afar Exploration LLC, an American company to explore and develop petroleum (PSA) in the Afar National Regional State, today, on March 29, 2006 at the premise of the Ministry.

The Agreement is signed by H.E Mr. Alemayehu Tegenu, Minister of Mines and Energy and Mr. William C. Athens, owner and General Manager of the company.

Some of the major points of the signed agreement are:-

  • The Ministry has granted Afar Exploration LLC an exclusive right that enables the Company to engage in exploration and development within the license area for the coming 25 years, and will be extended for ten years.
  • The initial term of exploration period shall be two (2) years, and will be extended twice each for eighteen months.
  • The exploration areas covers an area of 21,187 Km2.
  • The company has allocated a minimum Investment Capital of 200,000 (two hundred thousand) American dollar.
  • The company shall provide training opportunities on petroleum sciences to Ministry’s professionals.
  • The company shall provide a signatures bonus of 10,000 USD for the Purpose of collecting and analyzing data, in world standard and to monitor petroleum activities.
  • The Company allocated 10,000 USD each Year for Community Social Development work.
  • The company shall give preference to the employment of Ethiopian nationals, provided that these national have the required qualifications and experiences, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The company’s activities in the country shall be governed by the petroleum laws and regulations and other Ethiopian laws.

Afar Exploration LLC is the company engaged in petroleum operations in different Countries.


Ministry of Mines and Energy


March 22, 2006
Press Release
 Gold Mining Agreement Signed

The Ministry of Mines and Energy has granted a license to Western Wellega Gold Exploration P.L.C. to mine Placer Gold in large scale at Oromia National Regional State, Western Wellega zone, namely at Dengi locality.

Accordingly, the agreement is signed today on March 22, 2006 by H.E. Mr. Alemayehu Tegenu, Minister of Mines and Energy on behalf of The Federal Democratic Republic of Ethiopia, and Engineer Berhane Abate Ali Executive Director of the company, on behalf of Western Wellega Gold Exploration P.L.C..

Some of the major points of the signed Agreement are:-
  • The Licensee has an exclusive right for a large scale mining of Placer Gold within the License Area for the coming eleven (11) Years.
  • The License Area covers an area of 533, 376 m2.
  • The Company has allocated Birr 9,248,866 (Nine Million two hundred forty eight thousand eight hundred sixty six) investment capital.
  • The Licensee, for the coming eleven years, will produce 1,459.09 /one thousand four fifty nine point zero nine/ kg. Gold.
  • The Mining activity shall create 43 Job opportunities.
  • The company has planned to construct 24 km. gravel road to create conducive working conditions. This might help for community development programme.
  • The Licensee has agreed to give preference to the employment of Ethiopian nationals provided that such personnel have the required qualifications & experience, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The Company shall conduct Mining Operations in such a manner as to ensure the health and safety of its employees and other persons, and to minimize damage or pollution to the environment.
  • The Company shall be governed by the mining proclamations, regulations, directives and other Ethiopian laws.

Western Wellega Gold Exploration PLC., Ethiopian and Russian owned company, had acquired an Exploration license on Primary gold, on April, 1999. Today’s license is issued based on the previous license. It is the second placer gold mining agreement granted by the Ministry. To conclude, the conducive investment environment which has created so far has attracted 33 privately owned exploration and mining companies, having 55 licenses, operating all over the country.


Ministry of Mines and Energy

December 12,2005
Press Release

The Eastern Part of Ethiopia, particularly the Somali National Regional State has been considered as one of the potential areas for petroleum exploration and Development in Ethiopia.

South West Energy Ltd, a Hong Kong registered company has applied to the Ministry of Mines and Energy to explore and develop petroleum at Degahabur areas in the Somali National Regional State. After conducting serious negotiation, the two sides have finally agreed to sign petroleum Exploration and Development agreement, today, in Addis Ababa.

Accordingly, this Production Sharing Agreement is signed by H.E Mr. Alemayehu Tegenu, Minister of Mines and Energy and Mr. Tewodros Ashenafi, Chairman of the South West Energy LTD.

Some of the major elements of the agreement are:-

  • The Ministry has granted South West Energy Ltd., an exclusive right that enables the Company to engage in exploration and development within the license area for the coming 25 years, and will have the right to extend for ten years.
  • The initial term of exploration period shall be (4) years, and will be extended twice each for two years.
  • The exploration areas cover an area of 21,187 Km2.
  • The company has allocated a minimum Investment Capital of 3.5 (Three Point five) million dollars.
  • The company shall pay training opportunities on petroleum sciences to Ministry’s professionals.
  • The company shall pay a signatures bonus of 250,000 dollar for the Purpose of support for collecting and analyzing data, and also to upgrade the Capacity in monitoring petroleum activities in world standard.
  • The company shall give preference to the employment of Ethiopian nationals, provided that these national have the required qualifications and experiences, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The company’s activities in the country shall be governed by the petroleum laws and regulations and other Ethiopian laws.

Ministry of Mines and Energy


December 9, 2005
Press Release

The conducive investment environment prevailing in Ethiopia has attracted 31 privately owned exploration and mining companies, having 53 licenses, operating all over the country. To this effect Fanous Construction P.L.C., has acquired a license to mine construction material in small scale at Addis Ababa Regional State, Bole Zone, namely at Arbessa locality.

The Ministry of Mines and Energy and the Company have reached an understanding on the terms and conditions of the Agreement, which is finally signed here in Addis Ababa, at the premises of the Ministry of Mines and Energy.

Accordingly, the agreement is signed today on December 9, 2005 by Mr. Alemayehu Tegenu, Minister of Mines and Energy on behalf of The Federal Democratic Republic of Ethiopia, and Mrs. Almaz Tseame General Manager of the company.

Some of the major points included in the signed Agreement are:-

  • The Licensee is a small scale basalt construction material within the License Area for the coming ten (10) Years. Upon request by the Licensee, the License may be renewed for additional periods of not more than five (5) years each.
  • The License Area covers an area of 49,407.2 m2.
  • The License has allocated Birr 6,844,170,( Six Million Eight Hundred forty four thousand one hundred Seventy birr) investment capital.
  • The Licensee, when it starts its production on full capacity, for the coming ten years, will produce 800,000 m3 (Eight Hundred thousand) basalt aggregates to be used for construction purpose.
  • The Mining activity shall create 23 Job opportunities.
  • The Licensee has agreed to give preference to the employment of Ethiopian nationals provided that such personnel have the required qualifications & experience, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The Company shall conduct Mining Operations in such a manner as to ensure the health and safety of its employees and other persons, and to minimize damage or pollution to the environment.
  • The mine pits, excavations and other mining workings will be reclaimed according to the acceptable standards of environmental management and reclamation plan so as to use the mining area for sustainable development to the Addis Ababa city government.
  • The Company shall be governed by the mining proclamations, regulations, directives and other Ethiopian laws.



MINISTRY OF MINES AND ENERGY


October 18, 2005
Press Release

The Eastern Part of Ethiopia, particularly the Somali National Regional State has been considered as one of the potential areas for petroleum exploration and Development in Ethiopia.

PEXCO Exploration (East Africa) N.V, a Netherland registered company has applied to the Ministry of Mines and Energy to explore and develop petroleum at different areas of the Ogaden basin, namely, Ferfer and Abred, in the Somali National Regional State. After conducting serious negotiation, the two sides have finally agreed to sign petroleum Exploration and Development agreement, today, in Addis Ababa.

Accordingly, this Production Sharing Agreement is signed by H.E Mr. Alemayehu Tegenu, Minister of Mines and Energy and Mr. Keith Sidney Jackson, Attorney In-fact of the PEXCO Exploration (East Africa) N.V. company.

Some of the major elements included in the agreement are:-

  • The Ministry has granted PEXCO N.V. an exclusive right that enables the Company to engage in exploration and development within the license area for the coming 25 years, and will be extended for ten years.
  • The initial term of exploration period shall be (4) years, and will be extended twice each for two years.
  • The exploration areas cover an area of 29,865 Km2 both in FERFER and ABRED Localities.
  • The company has allocated a minimum Investment Capital of 5 (five) million dollar.
  • The company shall provide training opportunities on petroleum sciences to Ministry’s professionals.
  • The company shall provide a signatures bonus of one million dollar for the Purpose of collecting and analyzing data, in world standard and to monitor petroleum activities.
  • The company shall give preference to the employment of Ethiopian nationals, provided that these national have the required qualifications and experiences, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The company’s activities in the country shall be governed by the petroleum laws and regulations and other Ethiopian laws.

PEXCO Exploration (East Africa) N.V. is the company who engages on Telecommunication, entertainment and electrical power, along with petroleum operation by amalgamating with eight sister companies.


Ministry of Mines and Energy


September 13, 2005
Press Release

The conducive investment environment prevailing in Ethiopia has attracted 27 privately owned exploration and mining companies, having 41 licenses, operating all over the country. To this effect Ashraf Industrial P.L.C., has acquired a license to mine construction & industrial minerals in small scale at different localities of the Amhara National Regional State and the Oromia National Regional State. The Ministry and the Company have reached an understanding on the terms and conditions of the Agreement, which is finally signed here in Addis Ababa, at the premises of the Ministry of Mines. The Agreement is signed today on September 13,2005, by H.E. Ambassador Mohamoud Driri, Minister of Mines, on behalf of The Federal Democratic Republic of Ethiopia, and Mr. Ashraf Seid Ahmed Hussien Ali, a Sudanese investor and owner of Ashraf Industrial Group. Some of the major points included in the signed Agreement are: -

  • The Licensee has an exclusive right to engage in the mining of construction minerals within the License Area for the coming ten (10) Years. Upon request by the Licensee the License may be renewed for additional periods of five (5) years each.
  • The License Area covers an area of
    1. In the Amhara National Regional State
      • at BekoAbo locality, to mine Sandstone, at the area of 15.3728 km2, and mine Granite, at the area of 35.922 km2.
      • at Avola locality, to mine Basalt at the area of 1.00392 km2.
      • at Menta Woha,to mine Marble, at the area of 1.01661 Km2.
      • at BahirDar locality, to mine clay, at the area of 0.512923 km2.
    2. In the Oromia National Regional State
      • at Keteba locality, to mine Sandstone, at the area of 2.02064 km2.
      • at Tiffi locality to mine limestone at the area of 1.00564 km2.
  • The Company has allocated Birr 131,197,486 (one hundred thirty one million one hundred ninety seven thousands four hundred eighty six birr) investment capital in both regions.
    1. In the Amhara National Regional State: to mine Sandstone, Granite, Basalt, Marble and Clay, an investment capital of Birr 91,121,383 (ninety one Million one hundred twenty one thousand three hundred eighty three birr).
    2. In the Oromia National Regional State: to mine Sandstone and Limestone, an investment capital of Birr 40,076,103 (forty million seventy six thousand one hundred three birr) allocated by the company.
  • The Company shall continue mining for construction& industrial minerals and diligently pursue implementing the agreed work program of the License.
  • The Licensee shall give preference to domestic goods and services where they are readily available at competitive prices and are of comparable quality.
  • The Licensee has agreed to give preference to the employment of Ethiopia Nationals provided that such personnels have the required qualifications & Experience.
  • The Mining activity shall create 359 Job opportunities in the Amhara & the Oromia Regions. (250 and 109 respectively)
  • The Company shall conduct Mining Operations in such a manner as to ensure the health and safety of its employees and other persons, and to minimize damage or pollution to the natural environment.
  • The company shall be governed by the mining proclamations directives, regulations and other Ethiopian laws.

Ashraf Industrial Group, when it starts its production on full capacity, for the coming ten Years, will produce 32,850 m3 Sandstone, 21,890 m3 granite and 591,280 m2 Sand stone & 394,180 m2 Granite in tiles & slab form, in BekoAbo area; 800,000 ton Basalt, in Avola area; 54,000 ton Marble in Menta Woha area; 2,700,000 m3 clay around BahirDar, in the Amhara National Regional State. In the Oromia National Regional State, 80,820,000 m3 Sandstone, 1,454,960 m2 Sandstone in slab and tiles form, in Keteba area; and 54,000 ton Limestone in Tifti area, will be produced.

This construction & industrial minerals mining agreement will have a significant contribution to the development of the Amhara & the Oromia National Regional States and particularly the surrounding areas of the project.


MINISTRY OF MINES

July 25, 2005

The Eastern part of Ethiopia, particularly the Somali Regional State has been considered as one of the great potential areas for Petroleum Exploration and Development in Ethiopia. Petronas a highly reputed Malaysian Company has requsted the Ministry of Mines to explore and develop petroleum at different blocks of the Ogaden Basin. After conducting serious negotiations for the last two months, the two sides have finally agreed to sign Petroleum Exploration and Development Agreement which includes Kelafo, Walwel–Warder and Genale areas. Accordingly, three Production Sharing Agreements are to be signed at Sheraton Addis on July 25th 2005 by H.E. Ambassador Mohamoud Dirir, Minister of Mines and H.E. Mr. Tan Sri Dato Sri Mohamad Hassen Marican, President and Chief Executive of Petronas. It has to be recalled that Petronas had signed a Joint-Study Agreement with the Ministry of Mines, on June 11th 2003. And this Agreement signed today is the outcome of the said joint study. Some of the major elements included in the Agreement are:

  • The Ministry has granted Petronas an exclusive right that enables it to engage in exploration and development within the license area for the coming 25 years. The initial term of the exploration period shall be (4) years, and will be extended twice each for two years.

  • The exploration areas which are located in the Somali Regional State, cover an area of 36,796 km2 at Walwel and Warder; 30,611 km2 at Kelafo; and 25,571 km2 at Genale respectively.
  • The Company shall spend a minimum capital of 15 million USD.
  • The Company shall provide training opportunities on Petroleum Science to the Ministry’s professionals.
  • The Company shall give preference to the employment of Ethiopian nationals, provided that these nationals have the required qualifications and experience, like wise, it shall also give preference to domestic goods and services as long as they are readily available at competitive prices and of comparable quality.
  • The Company’s activities in the country shall be governed by the Petroleum Laws and Regulations and other Ethiopian laws.

Petronas is the company which aquired a license from the Ministry of Mines to undertake petroleum exploration and development activities in the Gambela Regional State on June 11, 2003, and has successfully accomplished seismic studies. Currently, it is ready to start the drilling activity.

Ministry of Mines

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