MINISTRY OF MINES AND PETROLEUM

Draft Mineral Resources Development Policy

May 2019
Addis Ababa, Ethiopia
 1. INTRODUCTION
For a country striving to transition from absolute poverty to a level of affluence through a
structural transition process, harnessing natural resources including minerals is an important
milestone. To accomplish Ethiopia’s vision of becoming a middle income country - as indicated
in a time table and to build its industrial development capacity through the modernization of
agriculture and manufacturing industry, the country needs to properly develop and utilize its
natural resources.

Even though mineral resources are vital for development in many ways ranging from meeting the
large portion of industrial demand to contributing to the national economy through foreign
exchange earnings and competitive mineral industries, and despite the recognition given to this
role in different development plans of the country issued at different times, Ethiopia has not yet
fully benefited from developing its mineral resources. Particularly:

1. The country is not benefiting from the sector due to incongruent sectoral goals, absence
of integrated institutions, awareness gap in the types and definitions of minerals,
negative perceptions about the sector with regard to development, environmental
protection and social benefit;
2. The mining sector requires a special recognition and due attention owing to its unique
attributes such as the fact that minerals are non-renewable resource, their prices are
volatile in the global market, and rents dominate the mineral industry;
3. The sector is linked with issues of sustainable development, especially environmental
protection, land use, societal benefit and social security;
4. Mineral resources development involves risk; requires a relatively high investment and
technological capacity; thereby requiring special attention and a guarantee for long-
term security;
5. Mineral sector development has strategic and geopolitical implications involving global
stakeholders;
6. In the realization of Ethiopia’s goal towards industrialization, mineral resources
development play a crucial part in filling the short term gaps in international
competitiveness due to weak technology and lack of skilled manpower by availing
locally manufactured raw materials and inputs;

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 7. Developing and harnessing natural resources in general and minerals in particular
through a structurally transformative process and using them as inputs for
industrialization is an important milestone, which requires a careful consideration;
8. Despite the indication of developmental initiatives for the utilization of mineral outputs
as raw materials in various agricultural and industrial development strategies, plans and
policies that have come into effect since 1994, the link between the country’s natural
resources and industries, environmental protection, social benefit, creating a
competitive mineral industry with capabilities including technological and human
capital have been weak to guarantee sustainable development;
9. Identifying what the sector can contribute, the support and follow-up it requires and
establishing a system of good governance is necessary;
10. Government should organize the relevant institutions towards realizing mineral
development and utilization as well as strengthening the sector’s network with other
industries so that the sector contributes for the country’s development; the government
need to also clearly identify and indicate areas where it needs to give special attention
and undertake in its own;
11. Given the relentless effort the above outlined issues require, and in accordance with the
provisions of articles 40(3) and 89(5) of the Constitution of the Federal Democratic
Republic of Ethiopia, wherein the right to ownership of all natural resources of Ethiopia
is exclusively vested in the government and in the people of Ethiopia and that the
government is the custodian thereof, this Mineral Resources Development Policy has
been formulated to realize the development of the sector.
Generally, in accordance with the country’s need for development and the constitutional
provision of developing the country’s natural resources,

With the belief that developing the sector to expedite industrial development, agricultural
transformation and sustainable development of the service sector through proper administration
is essential, issuing a policy with appropriate implementation strategy is required.

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 2. POLICY BACKGROUND, MINERAL RESERVE OF ETHIOPIA
AND BOTTLENECKS IN THE SECTOR
2.1. BACKGROUND
The recent economic development and development scenarios show that the success of the
industrial revolution and the achievement of the nation's potential up to the 21st century digital
technology have led to the exploitation of mineral resources in various sectors. For the sake of
economic prosperity, development and national capacity building and development, countries
have taken their own minerals as well as that of developing countries and are still taking over
minerals. In contrast, international trends in emerging countries, especially in Africa show
mineral resources as a source of conflict and environmental degradation, as a result of this, they
have been portraying it as source of backwardness and that have not played a role in the
continents’ development. Conflict, migration and environmental degradation are not the results
of minerals, but rather the results of lack of wisdom and capacity to manage and use the minerals
in a proper way without undue influence from the giants of the sector.

The value addition in minerals and quarrying in Ethiopia was growing at a rate of 25.9 percent
between 2008/9 and 2012/13. Its contribution to the Gross Domestic Product GDP in 2012/13
was 1.4 percent. During the fiscal year 2012/13 and 2013/14, mining sector, particularly gold,
was 19 percent, out of the total export revenue. In particular, it has been able to become the
second largest foreign currency earner in 2017/18, with a surge of $ 602.4 million in 2011/12. As
a result of the global price downturn and global outflows in 2017/18, the contribution to national
production and exports has decreased by 0.4% and 3.6% respectively. This indicates that the
sector needs special attention.

A modern, meaningful mining industry in Ethiopia is seen in gold mining. While this
development is still limited to further expansion of minerals, gold mining has long been a key
factor in the country's foreign exchange earnings, job creation and revenue generation as well as
financial institutions as a storehouse, as well as expanding as a competitive industry nationwide.
Given the long history of gold mining, it has not gone a long way; in foreign currency earnings,
creating jobs and income generation, holding financial institutions as a storehouse, and
embellishing at the national level as a competitive industry.

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In the context of the linkages between mining and other sectors of the economy, sand, basalt,
ignimbrite, mineral oils, granary and limestone minerals are important inputs to the construction
and manufacturing industries. However, the construction sector that is leading the growth rate of
the country's economic growth, by up to 70%, indicates that there is a gap between Ethiopia's
mining sector and the needs to be filled with foreign products.

Furthermore, Ethiopia is still heavily involved in mineral development in view of the rapid
transformation of the agro-processing industry and agro-pastoral strategies, which are believed to
be geared toward the strategic planning and attaining a meddle income country status.

The use of a traditional method of mining in Ethiopia has been prevalent for many centuries and
explored geological study of structures conducted two centuries ago have shown the existence of
most important minerals. Moreover, not only did it realize the importance of mining for
agriculture, but also for the implementation of the government's development plan, in the late
1940s, major institutions, such as the Ministry of Mines and the Ethiopian Geological Survey,
were founded around 60 years ago. The question of why it has not been possible to utilize
Ethiopia’s mineral resources in an appropriate manner all this time remains to be the major
policy question.

The underlying causes and weaknesses in the development and development efforts of the
Ethiopian mineral development are similar to those observed in in any other sector of the
economy; implementation strategy, low capacity of institutions, lack of focus and sustainability
as a result of regimes changes. One of the key solutions for this sector is to develop a policy that
fits the industry's long-term focus on mining sector development. As part of its strategic focus on
the second strategic plan of the second line of strategy, the policy of the investment policy is the
main role of this policy document, emphasizing the interests of the sector and focusing on the
orientation of the country and the development of mining resources.

2.2. MINERAL RESERVE OF ETHIOPIA

According to some evidence, study of geology and mineral exploration in Ethiopia began in
1838. The study shows that about 25 percent of the country's 1.1 million square km of land,
including Precambrian rocks, 25% of the Mesozoic sediments, and 50% of the recent Cenozoic

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volcanic and rocky geysers. The pre-Cambrian geological structure which is known to bear
metals, such as gold, iron, copper, and nickel, is the basis of the medieval geology composition
for gas and iron and non-metallic minerals. The most recent geological composition that covers
the country is the origin of industrial minerals, natural gas and petroleum, potash, salt, limestone,
glass, dolomite, benzene, diatomite, soda ash, pumice, opal and sulfur.

2.3. BOTTLENECKS IN THE SECTOR

The importance of harnessing mineral resources for social and economic transformation in
Ethiopia and the need for identifying the mineral potential of the country have been highlighted
in the various development plans in the past. Despite such recognition of the role of mineral
resources by the different regimes of the Ethiopian government since 1950s, Ethiopia has hardly
benefited from its mineral resources. The low level of development in harnessing natural
resources in general and mineral resources in particular while the country is known to have been
endowed with diverse natural resources can be considered both the cause and sign of the
underdevelopment of the nation. For the purpose of policy intervention, identification of major
problems in the sector may fall under five interrelated categories.

To begin with, a restatement of the main problem of the sector is that in spite of the clear
recognition of the potential for mineral resources, Ethiopia has not yet benefited from developing
such mineral resources for its social and economic development. The direct reason for such
underdeveloped mineral resource is the low level of investment in the sector in terms of volume,
type, and quality. Immediate causes of low level of investment in the sector include:

 Low level and quality of data and information on the country’s mineral prospect;
 Limited capacity on quality services in the process of licensing, promotion and targeting
reliable investors, and weak administrative capacity.
Some intermediate causes for the meager investment in the mineral sector in the country are:

 Low level of skilled manpower and weak technological capability;

 Low demand from other sectors of the economy for specific mineral resources in the
country.

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 Even more fundamental causes of low level of investment in the mineral sector and the overall
low level of development of the sector include:

 Lack of continuity in the efforts and focus that target the sector’s development mainly
due to changes in institutions and the technical challenges associated with the sector;
 Disregard to the fact that development in other economic sectors heavily relies on the
degree to which mineral resources are exploited, and hence structural transformation
requires the harnessing and use of mineral resources;
 Lack of clear instruments;
 Misperception among communities and even policy makers on the role of minerals in
development process;
 Low capacity of federal and regional government mineral sector administration in
implementing laws and regulations in the sector.

3. Mineral Sector Development Policy: Vision, goals, objectives and

instruments

3.1. Vision
The vision of the mineral sector development policy is to establish a strong mineral sector
capability which guaranties a competitive mineral industry in Ethiopia, serves the goals of strong
industrial development, ensures equitable and sustainable social transformation, and sustainable
development over the next twenty years. This vision is consistent with the country’s overall goal
of becoming a middle income country.

3.2. Goals
The main goals of the mineral development policy emanate from the national economic vision
and are consistent with the country’s development strategies, plans, and goals. Accordingly, the
overall fundamental goal of the mineral sector development policy is to ensure national industrial
capability through the process of viable structural transformation. Specific major goals include:
 Create and strengthen linkages among sectors through value chains and critical fator
inputs;

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  Harness mineral resources to be used as factor inputs in the manufacturing industry and
modern agriculture;
 Contribute to the national economy through value addition in the mineral industry itself;
 Use mineral resources in the country to foster sustainable social transformation;
 Ensure desirable structural change in the economy by creating competitive mineral
industry;
 Use investment in the mineral sector as a platform to promote other key areas of
investment in the country for foreign investors;
 Create human resource, skill, and technical capabilities in the mineral sector through
promoting research and development, and trainings.
Some other additional goals of the mineral policy include study and identify minerals that can be
used for agricultural inputs, evaluate their volume of deposit and develop; identify and develop
minerals to be used in the construction, and manufacturing sector as inputs, that can be sources
of significant foreign exchange earnings; generate foreign exchange earnings through export of
minerals; improve production and marketing of traditional mining; and significantly increase the
geological data coverage of the country.

3.2.1. Mineral Sector Development for Structural Transformation

The key role of the mineral sector development is to foster and speed up the plan of economic
growth and structural transformation that has been in place to fulfill the country’s vision of
development. The mineral sector need to be geared towards availing factor inputs and raw
materials for the development of modern manufacturing industry, agriculture, and globalized
services. It is also expected to play a pivotal role in the transformation process by generating
foreign exchange earnings which is critical to finance imports of capital and technology, and to
ensure macroeconomic stability. Furthermore, the sector, as a competitive industry, will be a
source of employment and value-addition.

While it is established that the mineral sector has an indispensable role in the development of
other economic sectors, the development of the mineral sector as a viable industry also heavily
depends on the transformation of other sectors. Expansion of industries that make use of mineral
resources as inputs, the mineral sector will be transformed to a viable industry that generates
employment opportunities for citizens and adds value to the national economy. Expansion of
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urbanization through the process of structural transformation will help reduce conflict of interest
that arises on land use between the mineral sector and other sectors and the ensuing adverse
social outcomes. Such interdependence among sectors including the mining sector calls for
harmonization of different national policies and their implementation.

3.2.2. Mineral Sector Development for Sustainable Social Change

The direction of efforts that target on harnessing mineral resources for sustainable social
transformation needs to take the characteristics of mineral resources that they are non-renewable,
subject to obsolescence in relevance due to changes in technology, have volatile prices in the
global market, and is mostly associated with rent rather than value addition. Thus, the ability of
the mineral sector to contribute towards sustainable societal change depends more on the overall
national economic capability which the mineral sector can help to happen by triggering and
supporting the transformation of other social and economic sectors more than the short term
benefits in the form of temporary employment opportunities, proceeds of sales of small scale
mines, and compensations for loss of land or damages inflicted by pollution. Given such broader
goals of mineral sector development in the area of sustainable social benefit, communities in the
area of mineral mines can benefit from the mineral sector development through change in
livelihood and serving as indigenous base for the effort of forming modern mineral industry. In
addition, government fiscal instruments and corporate social responsibilities can ensure
community benefits from mineral sector development. Clarity, transparency and accountability
on responsibilities of mineral developers in the form of royalty, income and profit taxes, land
lease that accrue to different administrative levels as well as corporate responsibilities lessens
conflicts, reduces risk and ensures healthy mineral sector development. A trust fund that can be
established by a partnership between government and mineral developers creates financial
capabilities to settle potential conflicts that arise from damages in the sector through
compensations and to ensure sustainable social participation that takes the future generation into
account.

3.2.3. Creating Competitive Mineral Industry

A more sustainable way of maximizing the benefits of mineral sector development in a Ethiopia
is creating a competitive mineral industry within the country through strengthening skills,
increasing technological capabilities, establishing strong institutions, forming strong partnership
and alliance with international stakeholders in the sector, and modernizing data and information
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systems of the sector. Research and development in the sector through strong partnership
between government, higher learning institutions, investors, communities, and development
partners is a viable way of creating strong capabilities of a competitive mineral industry.

3.2.4. A mineral sector development that ensures sustainable development

One of the sources of contentions against mineral sector development is the adverse impact on
the environment during mining processes. Ensuring a system that guarantees minimum damage
on the environment by using the best technology and putting in place mitigation strategies
consistent with sustainable development goals is one of the pillars and priorities areas of the
policy.

3.3. Objectives
The policy objectives are related to detailed accounts of data and information in the mineral
sector, the input requirements, markets and investment, production and value addition to the
national economy, and foreign exchange earnings the sector can generate. Documents of medium
term national plans will have detailed accounts of such objectives against volume, value and
years of implementations.

3.4. Instruments and Principles

Instruments of the policy tend to vary depending on specific goals and objectives. In particular,
general instruments of implementation include:

 Properly identifying the role of mineral sector in the development process of the
country,
 Properly identifying and documenting the mineral potential of the country,
 Planning and strategizing mineral sector development in the country,
 Promoting and ensuring a mineral sector development that is consistent with goals of
sustainable development,
 Putting in place fiscal and other instruments that strike a balance between attracting
quality investment in the sector and sustainable social benefits,
 Cultivating and ensuring efficient mineral administration,
 Creating mineral sector development corridor through provisions of infrastructure.

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Forming strong and strategic partnership with the international stakeholders in the sector is one
of the instruments that can be used to develop strategically important types of minerals with
significantly large financial and complex technological requirements but fail to attract
conventional investors who speculate quick returns.

The major principle of the policy is continuity of efforts and determination to implement the
goals and objectives of the policy. The basis for this principle is that the viable way to establish a
competitive modern economy led primarily by a manufacturing industry in the face of low level
of skilled labor and less advanced technology is by using the advantage of relatively cheaper raw
material and factor inputs that can be made possible through harnessing mineral resources
domestically.

Consistency of goals and objectives across sectors, engagement of stakeholders in the mineral
sector development, caring for the environment, inclusiveness of communities with clear
mandate of participation in the mineral sector development, and corporate social responsibilities
are additional principles of the mineral policy.

3.4.1. Identifying the Role of the Mineral Sector

Failure to properly plan the specific roles of the mineral sector in the economy leads to arbitrary
interventions in the sector and eventually compromises the benefits that the sector can generate.
An important step towards reaping the proper economic and social return from mineral sector
development is to undo the negative rhetoric associated with the adverse impacts of investments
in mineral mines in developing countries. The story and fact that need to be spelled out is that the
primary role of mineral sector development is to foster economic growth and sustainable social
development through transformative rather than extractive capabilities. The first step to properly
magnify the role of the mineral sector to stakeholders is to identify the types of minerals beyond
the mere perception of synonym of minerals with precious metals. Minerals can fall under six
general categories for such purpose of identification:

 Industrial minerals,
 Construction and dimension stones
 Precious minerals, base metals, and metals,
 Fuel minerals,

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  Geothermal energy,
 Gem stone minerals.
Based on such classification, it is apparent that minerals form the basis for the inputs of all
productive sectors of the economy, and hence their indispensable role in economic growth
should be discounted. In particular, reversing the misconception and misclassification of
industrial and construction minerals in the country that has diminished the proper role of such
minerals would increase the benefits in the form of employment, government revenues, and
proper environmental management.

3.4.2. Conducting a proper account of the country’s mineral resources

A proper account and documentation of the mineral potential of the country will help to align the
development strategies of the country with its mineral resources, pre-identify the potential for
inputs of the manufacturing and agriculture sectors, identify feasible areas of specialization to
build a competitive mineral industry, establish an efficient system for quality investment in the
sector.

3.4.3. Preparing Plan and Strategy for Mineral Sector Development

To maximize the benefit that accrues from mineral sector development and increase the
competitiveness in the sector, setting out plan and strategy for mineral sector development is
crucial. Such plan and strategy shall depend on the type and volume of mineral resource the
country is endowed with, areas of priorities in the social and economic sectors, and the capacity
to develop its mineral resources.

According to the studies conducted in the country so far, the geological structure of the country
has the prospect of bearing precious metals, industry and construction minerals, gem stones, gas
and petroleum, and to some extent metals such as iron. Nevertheless, such prospect for minerals
needs to be studied and documented in more detail.

The risky, complex and expensive nature of investment in the mineral sector implies that
minerals with the exception of those which have an established global market require domestic
demand from other sectors. This in turn implies harmonization of strategies and plans of the
various sectors of the economy with clear goals and objectives on their demand for inputs from
the mineral sector.

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Land utilization policy and regulation is highly likely to reduce conflict of interest as it gives
legal protection from other uses of land in areas where prospect of minerals are supported by
strong geological data.

3.4.4. Follow up
After proper identification of key goals in the mineral sector development, their phases of
implementation need to be properly planned. In particular goals such as generating foreign
exchange earnings, fostering goals of manufacturing industry development and agricultural
transformation, ensuring transformative mineral sector development, establishing mineral fund
for the benefit of the future generation need to be aligned on a short run, medium run and long
run perspectives.

4. Key Policy Issues

As discussed in detail, above, it is the main policy objective to provide proper governance to the Mining
Sector so that the sector becomes input provider and catalyst for development, in general, by creating
linkage between the sector and industrial development, modernization of agriculture and the service
sector. It will be the main purpose of this section to provide clear policy implementation mechanisms for
the creation of linkage between other vital economic sectors and the Mining Sector in order to achieve
structural transformation and national development. Together with this objective, it is also necessary to
provide clear policy direction and implementation mechanisms so that the sector generates the required
foreign currency for the national development; job creation and facilitate conditions where citizens
benefit from mining activity. Therefore it is crucial to take into consideration the difference that minerals
have during reconnaissance/prospecting; exploration, development and mining, general investment
requirement and sub divide the minerals in accordance with their character, special nature, use, types of
prospects, and provide the necessary focus, support, follow up and when necessary government
participation. This section deals with the problem that each sub sector experiences, policy direction and
policy implementation mechanisms.

4.1 Mineral Development for Industrial Development of Ethiopia

4.2 Precious Metals, Base Metals and Other Metallic Minerals

Although, various studies show that the country has positive indications of prospect of precious
metals, base metals and other metallic minerals, with the exception of gold there are no

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satisfactory information that shows, until now, the potential of other metallic mineral deposits
capable of development and mining. This indicates that there is huge task to be undertaken in the
sub sector.

Most of the minerals under this sub sector require vast amount of expenditure, knowledge,
experience, scientific and technological input/support, and persistence, luck and long gestation
period; from the time of reconnaissance to development and mining/production stage. Even after
the economic feasibility of a deposit is confirmed and the project progressed into development
and mining there are still various factors such as high technical capacity and skill, investment and
technology and other necessary conditions to advance into beneficiation, refining, smelter and
preparation of the products for manufacturing.

Therefore, the policy direction for this sub sector, in the short and medium term should be, to
explore and discover deposits that can be sustainably developed and economically mined in order
to generate foreign currency and in the long term to develop the capacity to beneficiate, refine,
smelt and use the minerals for manufacturing.

4.2.1 Policy Objective

The policy objective for precious metals, base metals and other metallic minerals is
to discover the minerals in a sufficient quality and quantity, sustainably develop and
mine, and supply to the market, facilitate the local beneficiation of the minerals and
in the long term it will be to develop the capacity to refine, smelt and convert the
minerals in to manufactured commodities.

4.2.2 Implementation Mechanisms

 To facilitate better ways of acquisition of high quality and quantity of geologic
data, the interpretation and upgrading of such data and efficient dissemination
thereof to users so that it can expedite the discovery of mineral deposits;
 carry out continuous promotional work and provide the necessary incentive and
support so that the private sector extensively engages in the mining development
sector;
 make available a system where locally mined minerals can reach the local or the
international market without difficulty;
 up on discovery and mining of the minerals, to establish an entity that conduct
research to create local capacity to refine, smelt and use the minerals as input for

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 local fabrication/manufacturing and as required in the long term;
support/encourage the implementation of such study; and
 provide the necessary support, assistance and incentive for organizations that
beneficiate minerals locally.

4.3 Industrial Minerals

The role of minerals for local industrialization is immense. In particular it is important to enhance
and ensure the competitiveness of local industries by utilizing industrial minerals as input for
local manufacturing. Alongside enabling the utilization of industrial minerals as input for local
industries value addition of the minerals by undertaking beneficiation of minerals required as raw
material for international market supports the economy immensely.

It is also possible to strengthen sectoral linkage by locally producing various types of chemicals,
implements, utensils, fertilizer, and various commodities utilizing industrial minerals as input.
Therefore the appropriate policy direction shall be to provide special focus and facilitate the use
of industrial minerals as industrial input and conversion into various types of commodities.

4.3.1 Main Challenges/problems

 Non availability of satisfactory studies on industrial minerals;
 Non availability of adequate number of industries that use industrial minerals as
input, those available are dependent on imported input;
 Lack ofsufficient knowledge and awareness on the possible contribution of industrial
minerals for the economic and social development of the country.

4.3.2 Policy Objective

The main policy objective is to enable the persistent exploration and development
and mining of industrial minerals, supply with competitive price and widely use the
minerals for local manufacturing.

4.3.3 Implementation Mechanisms

 prepare a report, by compiling studies conducted so far on industrial minerals
conduct an inventory of industrial minerals that can be used as input for local
manufacturing;

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  conduct continuous study to enhance the knowledge and data base of the
industrial minerals of the country as well as improve and build up the database;

 establish a government entity that study and classify industrial minerals that
can be used as input for local manufacturing, identify where such minerals are
found, identify the type and size of deposit, determine the type of manufacturing
the mineral can be used for, research the required process to convert the minerals
into commodity, the required amount of investment, market condition and the
way in which the activity can be started and gradually expanded and promote,
encourage and support local investors to engaged in such industrial activity;

 promote and provide the necessary support for the expansion/development of

local industries that use locally available industrial minerals as input;

 to provide a system whereby government agencies that are engaged in the

economic, industrial and agricultural sector and the private sector work in
harmony and collaboration to implement the mechanism by which industrial
minerals can be beneficiated and used as input for local manufacturing.

4.4 Minerals as Agricultural Input

Modernizing the agricultural economic sector is a critical part of the effort to bring about the
structural transformation of Ethiopia. The possible ways of the realization of modernization of
agriculture include building overall production capacity in the sector, developing the water sector
and minimizing rain fed agriculture, increase the productivity of labour and land, augment the use
of modern, sustainable and environmentally friendly fertilizers, weed and pesticides. Out of these
means of modernizing agriculture, the direct or indirect role of minerals is huge. In the process of
harnessing water resource for agricultural purposes; the inputs to construct irrigation system;
metallic inputs that are required to manufacture modern agricultural machineries, agricultural
inputs that are used for enhancing the productivity of soil are, indeed, mineral supplies.
Modernization of agriculture as part and parcel of the structural transformation expands the
demand for mining and use of most of the needed minerals will be created. As a result, in the
short and medium term; it will be possible to achieve the objective of substituting agricultural

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inputs by beneficiation and producing vital agricultural inputs required for development; this in
turn saves the country a huge amount of foreign currency that it spends for such purpose.

4.4.1 Main Challenges/problems

 No adequate focus was given for reconnaissance/prospecting, exploration and
development of minerals that can be used as agricultural input;
 Except for few mineral types that can be used as input for agriculture, it is not
sufficiently confirmed that minerals that can be used as agricultural input exist;
 No sufficient private investment focused on minerals that can be used as agricultural
input,
 Even though there may be minerals that may be used as input to agriculture; there are
no adequate preparation to convert such minerals into fertilizer or other form of
agricultural input.

4.4.2 Policy Objectives

 To properly determine potentials of minerals that can be used as agricultural
input and advance them to the stage where they can be developed.

 Create a capacity to manufacture agricultural inputs using locally available

agricultural input minerals and supply to local and international market.

4.4.3 Implementing Mechanisms

 The government shall allocate budget and work with determined focus to enable
existing potentials of agricultural input minerals to progress into development
and mining stage and facilitate the discovery of new deposits;
 Provide support and special incentive to investors that work to discover
agricultural input minerals and to mine such minerals economically;
 Provide special incentive and support to investors engaged in manufacturing
agricultural inputs using locally available agricultural input minerals;
 Alongside the assistance and support that it provides to private investors, the
government will undertake the required capacity building to fill the gap that it
identifies;

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  The government on its own or jointly with the private sector will take measures
to manufacture agricultural inputs using locally available agricultural input
minerals.

4.5 Construction and Dimension Stones

It is know that our country is endowed with vast amount of construction minerals. From time
immemorial, construction and dimension stones are known to have been used for various
purposes. They are also used as input to the construction sector, an industry currently leading the
economic activity of the Country. Although the construction sector is known for using huge
amount of locally produced raw construction materials; it is also known for its use of imported
finishing construction materials with medium and high value addition.The fact that the cost of
imported construction inputs is highest compared to local construction materials shows that the
country has a huge potential to bring sectoral linkage by adding value on construction and
industrial minerals.

The proper and sustainable use of local construction minerals contributes to the effort of attaining
self-sufficiency by deploying local resources for local economic and social development.
Furthermore, it can give the country the option to allocate the foreign currency that it spends to
import the construction minerals outputs for other development purposes. It is necessary to
recognize materials such as sand, gravel, various types of stones and similar construction
minerals which are not even widely considered as minerals; as important resources. And
introduce uniform system of good governance of the sector for utilization of the resources which
in turn helps to accelerate the development of the sector, including the realization of good land
use management, appropriate environmental protection and reduction of conflicts. The revenue
the government earns form the sector could also help to ensure the benefit of the community.

4.5.1 Main Challenges/problems

 The created gap due to lack of awareness to the extent that most of the construction
materials are not recognized as minerals and as a result the sub-sector is provided
with minimal focus;
 Lack of local capacity to mine, process and supply construction minerals in sufficient
quality and quantity for the construction sector;
 Lack of capacity to properly mine, process and supply dimension stones to the
market in sufficient quantity and quality.

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4.5.2 Policy Objective
 To enable the sustainable mining and processing of construction minerals/materials
and dimension stones to the required quantity and quality and utilize for economic
and social development of the country.
 Alongside local utilization, enable the mining and processing of sufficient quality and
quantity of dimension stones and supply to foreign market.

4.5.3 Implementing Mechanisms

 Provide the necessary support and incentive to encourage private investors to engage
in construction and dimension stone/minerals mining and processing activity;
 Provide the necessary support and incentive to encourage study and research to
improve and develop and implement new methods ofuse of construction
minerals/materials.

4.6 Gem Stones

It is known that there are potentials of a range of gem stones in various parts of Ethiopia. Gem
stones can fetch better and high value, rather than export of rough stones, if properly cut and
polished to the acceptable standard and converted into jewelry locally. This way they could also
generate job opportunity for large number of people. It is also possible to link the skill in this sub
sector with the weekend cultural tradition of gold and silver jewelry making and revive the
cultural heritage of the country and at the same time pass the cultural heritage to the future
generation and also generate handsome financial benefit to the country.

As our country also has a huge potential of tourism industry capable of expansion;it is required to
work hard towards the strengthening of jewelry making and traditional handcrafts and create
linkage between the tourism industry and local jewelry marketso that the collaboration could
generate huge income.

4.6.1 Main Challenges/problems

 The sub-sector is scattered and provided with inadequate attention;

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  Lack of adequate training and human resource development in the sub-sector,
specially no training facility that provides training to cut and polish the stones, if at
all available, not significant;
 The decline in traditional jewelry making from gold and silver;
 Damage to the stones due to lack of good extraction methods;

4.6.2 Policy Objective

 Enhance the production of gem stones by expanding exploration and mining of the
stones; increase the contribution of the sub-sector for local development by
developing jewelry making skill and adding value to the stones.

4.6.3 Implementing Mechanisms

 Provide support and incentive for the reconnaissance, exploration and mining of gem
stones/minerals.
 Provide special attention to the sub-sector and expand local value addition;
 Alongside local value addition; increase quality and quantity of export of rough
gemstones.
 Establish an entity that focuses and works for the development of the sub-sector;
 Establish a training center that trains the skills of cutting, polishing and jewelry
making by using gem stones;
 Provide the necessary support and incentive for local handcrafts and organization that
make jewelries in combination of gold or/and silver.

4.7 Artisanal Mining

Large number of artisanal miners produce considerable amount of gold at various parts of our
country. This product could be considered as one source of foreign currency for the country’s
development effort.

However, large amount of this gold produced by artisanal miners is smuggled out of the country.
With this trade it also seems that organized and not strictly law abiding groups are emerging. In
some occasions there are situations where artisanal miners trespass into the areas of legally
licensed activities and take ores prepared for processing. The impact that artisanal mining causes
on the environment is also considerable. On the other hand, if the sub-sector is well managed,

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provided with the necessary support, follow-up and supervision, in addition to the foreign
currency it generates, it can create jobs for large number of people. There is also ample chance
that such activities grow into small and medium size mining operations.

4.7.1 Main Challenges/problems

 Increase in number of people engaged in gold smuggling;
 Undue competition and encroachment to legally licensed mining or exploration
operation areas;
 The number of people engaged in the sub-sector is huge and as a result clears large
area of forest, digs large area of land and causes severe environmental impact on the
locality;
 The increase in the use of mercury to separate the gold from other materials is
aggravating the damage that may be caused to humans, animals and the environment.
 As a result of backward mining methods the gold that is wasted is much more than
the recovered.

4.7.2 Policy Objective

Organize and provide appropriate training and support to artisanal miners so that they
carry out their activities in a manner that supports sustainable development and the
activities to gradually convert/grow into small and medium scale mining
operations/organizations.

4.7.3 Implementing Mechanisms

 Provide support to strengthen regional mining governance entities;
 Establish extension unit that provides support, organize, provide training and follow
up and supervise the activities of people engaged in artisanal mining;
 Create a system that organizes and coordinates federal and regional mining
governance bodies to work closely with the artisanal miners extension unit to resolve
the problems that exist in the artisanal mining sub-sector and help the sub-sector to
contribute for sustainable development;
 Find ways and facilitate, encourage and support artisanal mining activities to
grow/transform into small and/or medium scale mining operations;

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  Undertake a strategic environmental and social impact study for areas where artisanal
mining activity takes place and on that basis prepare environmental and social impact
management plan;
 Establish an entity that specifically works on strategic environmental and social
impact study for areas where artisanal mining activity takes place, implement the
environmental and social impact management plan, execute, follow up, supervise,
and study damages that happened at earlier times and treat and reclaim the damaged
area;
 Require artisanal mines to contribute small amount from their income for alleviation
of environmental and social impact and reclamation and for establishing entities that
provide service for sustainable social development;
 Establish a system that can train adequate number of extension workers;
 Implement a system that enables efficient recovery of minerals mined by artisanal
miners;
 Establish effective and efficient system that ensures minerals mined by artisanal
mines reach the market;
 By establishing effective control and better marketing system; stop the smuggling of
mineral produced by artisanal miners; and
 By supporting the creation of alternative economic activities in the areas where
artisanal mining activity takes place, facilitate the possibility that people engaged in
artisanal mining will continue working once the minerals are exhausted or switch to
new jobs.

4.8 Environmental Protection, Social Issues and Sustainable Development

4.8.1 Environmental Protection
4.8.1.1 Policy Objective
The mineral resource development in Ethiopian shall be conducted in accordance
with the principles of sustainable development and with appropriate environmental
protection principles and standards.
4.8.1.2 Implementing Mechanisms
 All mining activities starting from exploration, development, mining and
closure shall pass through appropriate and standard environmental and social
impact study process;

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  All environmental and social impact studies shall have environmental and
social management plan that shall enable as outlined in the environmental and
social impact study to avoid, mitigate or reclaim and follow up and mitigate or
avoid environmental damage that may occur as a result of the mining activity at
a later time;
 A strong and well provided entity that will evaluate, approve, follow up the
implementation of environmental and social management plans and execute the
same shall be organized;
 A system will be put in place that provide a sustained training for professionals
that will have sufficient knowledge and skill to prepare, evaluate and execute
environmental and social management plan; and
 A system that supports and encourages research and investigation to reduce,
convert and/or recycle waste generated from the mining activity will be
established.

4.8.2 Mineral Development for Sustainable Social Development

4.8.2.1 Policy Objective
The main policy objective is to enable mineral development operations to
create a harmonious relation between their employees and the local
community and to enable such operations to have sustained interrelation with
local growth and development programmes and become part and parcel of
the community and ensure shared benefit.

4.8.2.2 Implementing Mechanisms

 A system will be provided where miners will contribute fund that will be
used for local development in the areas where the mining activity takes
place and that enables proper use of the fund for local development;
 The government shall provide special support to localities where mining
takes place by ensuring transparency of the revenue it collects as royalty,
income and dividend tax and land rentals;
 A continuous and sustained consultation system will be provided to
enable a harmonious relation between miners and local community
where mining takes place;

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  Measures will be taken to facilitate the establishment of manufacturing
activities that use the minerals produced as input where possible or
alternative measures will be taken to facilitate the creation and expansion
of other industrial activities that can sustainably run when the mineral is
exhausted in the locality where the mining activity takes place by using
part of the government revenue generated from the mining activity;
 By deducting some part of the revenue from mining sector a sustainable
national reserve fund will be established, for the use of the future
generation.

4.9 Mining Sector Investment and Market

4.9.1 Mining Sector Investment
After identifying the minerals that play significant role for the economy in general and
key development direction, the other area that requires serious attention is investment.
Although it takes into consideration the unique features of the mining sector, the
Ethiopian mining sector investment policy emanates from the general mineral
development policy and it is aligned with the general investment policy of the country.
As the Ethiopian Mining Policy is geared towards accelerating the structural
transformation of the country, the investment in the sector is in harmony with the main
objective.

Mineral resources have a critical role to achieve industrialization based structural

transformation of Ethiopia particularly in speeding up the productive industrial sector and
modernization of agriculture. Depending on the set priority for the development of the
nation, minerals that are proved to exist and required for the development effort can be
developed and mined by local and/or overseas investors, the state or a joint investment of
the state and the private sector. The key role of minerals is also determined by their
importance for the productive industry development, modernization of agriculture, the
creation of general linkage between various sectors, and their contribution to generate
foreign currency.

The investment in the sector is determined by the interest of foreign companies, capacity
and interest of local investors and the capacity of the state. The capacity of the state and

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 local investors is expressed in terms of finance, man power and technology. In this
regard, it is absolutely necessary to encourage foreign companies to engage in areas
where the mining activity requires extensive technology, experience and financial
capacity and for minerals that attract the interest of overseas companies.Those minerals
important for national development and capable of being developed and mined by local
capacity can be mined through the local private sector or jointly via the state and the local
private sector. Those minerals that are very crucial and have no alternative for economic
development and the intended structural transformation of the nation and require
extensive financial and technological capacity but do not attract international investment
should be developed and mined by the state or joint effort of the state and the private
sector or it may be considered to develop these mineral resources with the help of
international development partners of the country.

4.9.1.1 Policy Objective

To implement a systems and methods that makes Ethiopia globally competitive to
attract mining sector investment.

4.9.1.2 Implementing Mechanisms

 Identify and amend laws, regulations, directives and practices that are bottlenecks
to investment;
 To provide the appropriate support and incentive to local or overseas investors to
aggressively engage/invest in the mineral development sector;
 Create an efficient licensing system, particularly implement first come first serve
principle; implement a system that may be used where there is a sufficient reason
and in a very limited circumstances where licenses may be issued by bidding or
any other form of competitive process.
 Establish a system where government agencies that may provide services and
infrastructures related to the mining sector work in a coordinated manner;
 Provide a system that enables professionals serving in mining administration,
follow up, supervision and related services, have the necessary numbers and
professional diversity and that they will receive the necessary training,
experience and a system that will enable them to stay in their work with their
own accord;

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  Facilitate the opportunity for Ethiopian investors to engage in the mining sector
investment, directly or jointly with overseas investors;
 Adjust banking systems, foreign exchange laws, regulations and directives in a
way that it speeds up the mining development sector;
 based on the principle of benefit sharing, put into practice an internationally
competitive, stable and transparent tax system that can attract mining investment;

4.9.2 Minerals Market

For a country determined to achieve structural transformation, the major market for
minerals are the demands that are created by industrial development and modernization
of agriculture. As these demands expand in long term; the short term demands for
mineral commodities come from overseas market and parallel to this effort it is also
important to develop and mine minerals that are required for local development.
Alongside the traditional foreign market and jewelry making, it may be also possible to
create a better market around gold, a mineral that Ethiopia mines traditionally or with
modern mining methods for ages, if the National Bank and other financial institutions
promote and provide a better recognition to the mineral as storage of value.

4.9.2.1 Policy Objective

Alongside searching for international market for precious minerals and
minerals that the country may not need as input for local industries, the main
objective of the policy is to create a local market that properly uses the
mineral resources of the country that will augment the economic transition.

4.9.2.2 Implementing Mechanisms

 Help the establishment of modern advertising system;
 Create a network between clients and the international information
system;
 By fostering the cooperation of industries that use minerals and
mineral products and mining sector investors create a reliable and
sustainable supply of mineral inputs;
 Support the sector by research and study to ensure the quality of
minerals and mineral products and modernize mineral market.

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4.10 Creation of Competitive Mining Sector
The creation of competitive mining sector is a cumulative outcome of the effective
implementation of detailed policy objectives outlined in this policy document. Therefore
competitiveness should not be considered on its own, separately. In line with this
consideration; this section will focus on objectives and mechanisms not treated in other
chapters of the document.

4.10.1 Policy Objective

To enable the mining development sector to be strong, harmonized with the
international mining development activity, competitive, that attracts
sufficient investment and contribute for the sustainable development of the
nation.

4.10.2 Implementing Mechanisms

 A system shall be established to train appropriate and qualified
professionals and technicians required for the research and study of the
geology, mineral development and governance requirement of the
country;
 Higher educational institutions shall be provided with the necessary
support and encouragement so that they will engage and expand range
of research and study in mineral resources development sub-sectors,
and geological investigations;
 A system of cooperation and coordinationshall be established to
facilitate the use of various services available within the government,
the mining industry and higher education institutions to enablethe
undertaking of joint research and study works to augment the
expansion of technology transfer and human resources development;
 Research institutions that conduct research and study based on the need
of customers and stakeholders that support mineral exploration, mine
development, mining, processing, marketing and manufacturing and
environmental protection shall be established;

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  Necessary support and incentives shall be provided to help the transfer
and use of research outputs by various industries;
 A system shall be established to provide a uniform and up to standard
training to mine workers and technicians;
 An effort shall be made to expand necessary infrastructures critical to
the mining sector development such as transport, water supply, power
supply and communications facility;
 A cooperative arrangement based on common interest of African and
other countries focused on minerals and mining activities will be
organized;
 A system that enables the country to cooperate and coordinate with
other African countries for the efficient use of capacity, the
strengthening of cross border and regional integration, the expansion
of mineral value addition, beneficiation, smelting and fabrication will
be established;
 A system that enables the expansion and implementation of knowledge
and methods of mining sector science and technology will be
established.

4.11 Mining Law and Governance

Mining development laws promulgated, so far, has shown clear advancement time to time in
capturing modern ideas of the sector; however, they are mainly focused on the general and
comprehensive nature of the mining sector rather than providing particular attention to special
sub-sectors of minerals. It is clear that minerals have diverse category and features, and they can
be used as inputs to diverse economic sectors/activities and furthermore, their investment and
mining method and styles are also different. On the other hand, as the laws were not focused tothe
varied nature of mineral sub-sectors; they failed to give the necessary attention, support and
incentives required to each sub-sectors.

In addition to the fact that the laws in force did not provide sufficient attention to various mineral
sub-sectors, the institutions that were mandated to implement the laws are not as adequately
prepared and suffer from inadequate manpower. As a result, the gap observed in implementing
the laws effectively and efficiently by the institutions shows the difficulty of receiving and
serving the investment that may be available for the development of the sector.

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Although it is the federal government that has the mandate to promulgate and direct the
implementation of the law and administer natural resources, there is no enough harmonization,
cooperation and support between the federal government and regional governments. Such lack of
synchronization definitely plays a negative role in the development of mineral resources.

4.11.1 Main Challenges/problems

 As the laws did not give sufficient attention to mineral sub sectors, minerals that are
crucial to national development lacked the necessary focus and direction;
 Lack of adequate and efficient institutional preparation to implement the laws;
 Lack of competent and experienced human resource in sufficient quality and quantity
for the sustained implementation of the laws;
 Lack of adequate and appropriate training for sufficient number of employees
required for the job and lack of retaining qualified and experienced professionals on
their job.

4.11.2 Policy Objectives

 Prepare and implement a mining governance law and institutional set up capable of
executing the mining policy;
 Establish and implement governance system compatible with national standard for
follow-up and support.

4.11.3 Implementing Mechanisms - as Regards Laws

 Investigate current laws and practices and provide necessary revisions; establish new
systems and provide new laws as required;
 Primarily mining laws shall center on the leading role of the private sector in mining
investment, and ensure predictability and continuity, provide adequate protection and
security to investors engaged in the sector, enable transition of mining license to the
next stage or level of operation without difficulty, enable and ensure the right of
granting mining operation rights as security and/or transfer mining operation rights
to others/third party, and provide for detailed and necessary assurance and guarantee
the provision of efficient services and the necessary support and incentives.
 The laws shall provide detailed provisions as regards to the role of the private sector
and the government in mineral development activities;

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  The laws shall provide special attention for exploration, development and mining of
industrial, agricultural, construction and jewelry input minerals and establish the
necessary support and incentive system to enable such minerals to become input for
industrial development;
 The necessary attention and incentive shall be provided to accelerate and expand the
exploration, development and mining of precious metals, base metals and other
metallic minerals;
 The necessary system shall be established to provide the sector with good mining
industry governance by making the mining industry transparent, accountable and
open for public discussion and dialogue;

 A system shall be established to enable fair distribution of income between the

Federal Government and Regional Governments where the mining operation takes
place.

4.11.4 Implementing Mechanisms – as Regards Governance and Research

Institutions
 Thoroughly investigate the mining sector governance and reorganize so that it will be
able to effectively administer, issue license, promote, support, follow-up, supervise,
control and take the necessary actions;
 Material requirements necessary to direct, administer, promote, follow up, supervise
and control the sector shall be provided as much as possible;
 A modern and national mineral cadaster system that enables the availability of
comprehensive information shall be established;
 A system where Federal Government Agencies, Regional Governments and related
entities continuously consult, cooperate and support each other in order to enable and
accelerate sustainable mining sector development shall be established;
 A system shall be established to listen the views, opinions and interest of
stakeholders in order to advance transparency, fairness and justice within the mining
sector governance;
 a consultative council assembled from stakeholders that provides advice on strategic
directions, suggestions, and recommendations on resolving problems in relation with
the mining sector development shall be established;

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  The Geological Survey shall be converted into modern, strong and well organized
entity that will collect geosciences data, continually update, organize and supply such
information and knowledge to users and be the primary source of knowledge and
information to the mining sector;

4.11.5 Implementing Mechanisms – as Regards to Human Resource Development

and Administration
 A continuous human resource development work shall be carried out that enables the
governance of the sector with capacity, responsibility and accountability;
 An appropriate incentive system shall be provided to maintain experienced
professionals working in the sector;
 Short and long term training programmes shall be introduced in the school
curriculum to train skilled manpower to enable the use of various minerals
for(industry, agriculture, construction, jewelry, precious metals, base metals, and
other metallic minerals) fabrication, develop technical and technological skills to use
the minerals for various applications, and conduct research, study, development and
implement.

4.12 Crosscutting Issues

4.12.1 Gender and Woman’s Right
4.12.1.1 Policy Objective
To ensure the rights and equality of women is respected in the mining
industry, and to enable mining activities to be responsive for women’s needs.

4.12.1.2 Implementing Mechanisms

 Equal wage for equal work shall be implemented;
 Women shall have equal opportunity of work, training and participation
in the mining selector;
 By providing the necessary attention to the natural, physical and health
condition of women, mining operation areas shall be responsive to the
needs of women;

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  Consultations and decisions related to mineral development will take
gender issues into consideration;
 A system will be provided to protect women from gender based violence;
in particular sexual harassment and a system to take actions where
gender based violence is committed.

4.12.2 Labour Issues

A system shall be provided to protect the living condition, health and safety of
workers in accordance with international good practice.

4.12.3 Child Protection

A system shall be provided to protect children from labour exploitation and negative
effects of mining.

4.12.4 Right of Disabled Persons

Mining operation sights shall be provided with facilities taking into
consideration physically disabled persons.

4.12.5 Communicable Disease and Epidemics

A comprehensive system shall be provided to protect and eradicate problems that
may be caused by HIV AIDS and any other epidemics and health problems from
areas where mining operations takes place.

4. Policy Implementation Framework

It is a pre-requisite for the effective implementation of this policy that the implementation
framework is outlined beforehand. This helps to coordinate, integrate and govern the respective
stakeholders in this policy and monitor the implementation of the policy. In addition, it helps to
mobilize any types of support and assistance for the implementation of the policy and to build
adequate capacity to provide the required support in a timely manner. The implementation
framework of this policy outlines the scope of the policy, the institutional framework of the
policy and the various stakeholders of the policy and their respective roles.

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5. Scope
 This policy shall apply to mineral development and related activities.
 “Related activities” include all activities and works related to mining and the structural
transformation that this policy is intended to achieve towards bringing sustainable
economic development through the use of minerals as raw materials for
industrialization, agriculture, construction/building, jewelry and other purposes and to
cultivate their interrelatedness and complementarity as well as generating foreign
currency.

6. Institutional Framework
The Federal Democratic Republic of Ethiopia shall have the governing power in the
implementation of this policy and under the Federal Government the responsible organ for
implementing, monitoring and administering this policy shall be the Ministry of Mines and
Petroleum (the Ministry) provided that the nomenclature might vary from time to time.

7. Stakeholders and their roles

7.1. Various stakeholders shall be involved in the implementation of this
policy. The term “stakeholders” include:
7.1.1. Notwithstanding the governing role of the Ministry, other government agencies
such as in charge of Environment, Forest and Climate Change, Finance, Trade
and Industry, Agriculture, Innovation and Technology and other relevant
government organs;
7.1.2. Companies/organizations engaged in a mining activity,
7.1.3. The government of the regional state where the mining activity takes place and
state government organs directly related to the matter;
7.1.4. Community members of the area wherein the mining activity takes place;
7.1.5. Non-governmental organizations working on natural resources, mineral
development, environmental issues and social affairs; in particular, professional
associations and civil society organizations and civic associations and other
similar establishments; and
7.1.6. Concerned members of the community, particularly those with the knowhow and
expertise and working on the sector.

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 7.2. Stakeholders shall fully participate in all the necessary tasks of realizing
the implementation of this policy. Specifically:
7.2.1. participating in conferences that provide consultations and strategic guidance on
researches towards creating and strengthening the linkage between the mining
sector and industry, agriculture, construction and jewelry sectors and to promote
investment in the sector, regarding the potential of the sector to generate foreign
currency and the development of minerals and value additions;
7.2.2. conducting research and study jointly and independently on the required linkage
between the mining sector and other sectors such as manufacturing, agriculture,
construction and jewelry sectors as well as other service sectors, supporting,
providing assistance and facilitating circumstances towards mineral development
and value additions;
7.2.3. participating actively in the efforts of realizing good governance in mineral
resource administration through promoting transparency, accountability and
public dialogue.

8. Monitoring, Evaluation and Policy Review

4.8 The Ministry shall be principally responsible to implement this policy and
monitor and evaluatethe implementation thereof. The Ministry shall also be
responsible for proposing modifications based on its evaluation.
4.9 The ministry shall conduct annual evaluation and submit report on the
implementation of the policy. The report shall cover the policy
implementation, challenges faced and measures that need to be taken for a
better performance, recommendations for amendment and review and other
important issues.
4.10 Modifications/revisions have to pass through a stakeholder consultation before
they become recommendations.
4.11 Revisions and modifications shall be clearly identified and submitted to the
Council of Ministers with a cover letter explaining their relevance.

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 4.12 If the Council of Ministers found the recommendations acceptable, it will
approve such and send back to the Ministry for implementation and
monitoring.

9. Dissemination of the Policy

This Policy shall be publicized in any of the public media outlets and be known to the public. In
addition, it will be permanently posted on the Ministry’s website.

10. Effective Date

Save for periodic revisions and amendments, this policy shall have a life time of twenty (20)
years (until 2040) from the date of its effective date.

11. Definitions
In this policy,
11.1. “Mineral” means any mineral resource of economic value formed through a
geological process occurring naturally on or within the earth or water bodies.
11.2. “Mining Operation” means in general any of mineral reconnaissance, prospecting,
exploration, development, mining activity and could also mean any one of the activity.
11.3. “Mine development” means a work undertaken to access the minerals deposit, open up
and extract the minerals, process transport the minerals and construction of other
facilities and infrastructure directly or indirectly required to service the mining activity.
11.4. “Mineral development” or “Mining sector development” means a general expression
related with the contribution of the minerals/mining sector to advancement, growth and
expansion of the economy.
11.5. “Industrial Mineral” means any mineral used as industrial input such as kaolin,
bentonite, feldspar, potash, silica sand and other related non-metallic minerals.
11.6. “Agricultural input mineral” means industrial minerals that can be put directly or
through the process of manufacturing to serve as inputs for agriculture such as
potash, phosphate and lime stone.
11.7. “Construction mineral and dimension stone” means stones that are used for
construction works including marble, granite, basalt and sand.

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11.8. “precious stone/mineral” means minerals such as diamond, pearl, aquamarine,
ruby, emerald, sapphire, garnet, opal and olivine that can be used to make
jewelries.
11.9. “Precious Stone” means minerals such as gold, platinum and related minerals and
silver.
11.10. “Ministry” means Ministry of Mines and Petroleum.
11.11. “Environmental and Social Impact Assessment” means a report produced after the
evaluation of the positive as well as negative environmental and social impacts of
a project/work.
11.12. “Environmental and Social Impact Management Plan” means a plan that clearly
outlines the impacts that are outlined in an environmental and social impact
assessment report and provide measures to alleviate, rectify, rehabilitate, treat and
monitor such in order to avoid the impacts or reduce to an acceptable extent
thereby providing clear directions for its implementation.

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