Amhara National Regional State Delivers Gold to National Bank of Ethiopia

• The Amhara National Regional State delivered 357 kilograms of gold to the National Bank of Ethiopia (NBE) for the first time during the 2018 fiscal year.
• Strengthened regulation and enforcement efforts led to the seizure of over 133,500 cubic meters of illegally extracted minerals and generated 27.19 million Birr in revenue.
• Mineral exploration identified significant reserves of iron ore, granite, and basalt across the region, highlighting its vast mineral resource potential.

The achievement resulted from strengthened regulation of the mining sector and coordinated measures to combat illegal mining and illicit mineral trading.

The Amhara National Regional State has made significant strides in formalizing the mining sector, as evidenced by its first-time delivery of 357 kilograms of gold to the National Bank of Ethiopia (NBE) during the 2018 fiscal year. This achievement is a direct result of strengthened regulation and coordinated efforts to combat illegal mineral trade and exploitation. According to Amhara Region Chief Administrator Arega Kebede, the unprecedented gold supply will not only enhance the region's contribution to the national economy but also support Ethiopia's foreign exchange earnings and overall financial stability.

The regional government has intensified enforcement against illegal mining activities throughout the fiscal year, resulting in the seizure of over 133,500 cubic meters of illegally extracted minerals. Furthermore, corrective measures and confiscations generated more than 27.19 million Birr, which was deposited into the government treasury.

The Amhara Regional Council's 12th regular session saw Chief Administrator Arega Kebede present an annual performance report, highlighting the region's efforts to strengthen regulatory oversight and combat illegal exploitation of mineral resources. The administration emphasized that the achievement resulted from coordinated measures to curb illicit mineral trading and regulate the mining sector. Mineral exploration and reserve verification have also identified significant reserves of iron ore, granite, and basalt across the region, underscoring its vast mineral resource potential.

The regional government will continue to prioritize strengthening regulatory oversight to prevent illegal exploitation, improve governance in the mining sector, increase the legal supply of minerals, and ensure greater availability of raw materials for domestic industries.

The region's mineral exploration activities have revealed an estimated 5,148 tons of iron ore within a 10 square kilometer area. Furthermore, the exploration confirmed reserves of approximately 2.5 billion tons of granite and 1.625 billion tons of basalt across a 440 square kilometer area. This vast mineral resource potential has significant implications for Ethiopia's economy and foreign exchange earnings. The Amhara Regional State's efforts to formalize the mining sector and prevent illegal exploitation will undoubtedly contribute to the country's overall financial stability.

Lawyers advising clients on mining activities in the Amhara Region should be aware of the strengthened regulatory oversight and enforcement against illegal exploitation of mineral resources, which may impact their compliance obligations.

Source: Original reporting via ENA