Transcript A regulatory framework for Artisanal and Small scale Gold

June 2011
Vision
«To foresee the well developed
mineral resources contribution
to the foreign currency earnings
increase by 10 fold, and be the
back bone of the industry in
2020-2023»
Organizing in to cooperatives
ASG miners are organized
as cooperatives pursuant
to the proclamation No
147/91;
 Administer themselves by
their own work planning
programs;
Organizing cont………
The minimum No of the
members of the cooperatives is
10;
The cooperative expansion
agency of Ethiopia issues a
cooperative certificate for these
organized by it;

Organizing cont……
They can request the mining
license from regional mining
beauroe/agency, and issued
according to the law;
 5,000 – 10,000 Sq.m land is
given for mining;
Organizing cont……
Any cooperative that have an
Artisanal mining license has
to pay 8% Royalty to the
regional mining
beauroe/agency;
 Artisanal Miners are free
from taxes;
Organizing cont……
The final Gold purchaser in the
country is the National Bank of
Ethiopia mandated by the
government.;
The cooperatives can borrow
money from micro finance
institutions;
Challenges in ASGM……..
 Lack of basic infrastructure ;
 Presence of HIV/Aids, Malaria &
water borne disease in the mining
areas;
 Scarcity of drinking & working
water;
 Utilization of rudimentary mining
equipments;
Challenges cont…….
Lack of nearby Gold trading
markets;
 Engagement of child labor in
mining;
 Lack of nearby health care post;
 Gold smuggling;
 Lack of nearby Schools;
 The low status of women miners
socially, economically & politically.

Opportunities…….
An increase of mineral price in the
world market;
 An increment of 5% in each gram
of Gold from the daily world Gold
market price;
 One month free safe custody
service is provided by National
Bank of Ethiopia.

Present & future programs
Increase 1000 kg of Gold
and 700 kg of Gemstone by
5 fold in three years of
time .
development of mineral resources
Proclamation No 678/2010
 “Small scale mining” means any mining
operation of which the annual run-off
mine ore does not exceed:I. Regarding Gold ,platinum ,Silver and
other precious and semiprecious
minerals:
a. 100,000m3 for placer operation;
b. 75,000 tons for primary deposit mining;
Eligibility for license
/Article 11 /
 No person is required to possess financial
resources, technical and professional competence
in order to carry on artisanal mining operation.
/sub-article 2/
 No license may be granted or held by a non citizen
of Ethiopia or a group of persons who are
nonregistered as a cooperative society in
accordance with the relevant law where it is for
artisanal mining license. /sub-article 3c/
Promotion and regulation of
transaction of precious minerals
Proclamation No.651/2009
 No person shall carry out the transaction of
precious minerals unless he/she is registered
in the appropriate government office and is a
holder of an appropriate and valid license or
Certificate of Competence as appropriate.
/Article 4/
 Any person who has been issued a license in
accordance with the appropriate mining laws
is not required to have a Certificate Of
Competence or license pursuant to this
proclamation in order to sell locally or export
abroad the precious minerals it
produces./Article 2/
Types of licenses
Precious minerals brokerage
license;
Precious minerals crafting
license;
Precious minerals refining
license.
Types of certificates/ Article 10 /
 certificate of discovery;
A certificate of
professional
competence
Eligibility for license /Article 11 /
 No person is required to possess financial
resources, technical and professional competence
in order to carry on artisanal mining operation.
/sub-article 2/
 No license may be granted or held by a non citizen
of Ethiopia or a group of persons who are
nonregistered as a cooperative society in
accordance with the relevant law where it is for
artisanal mining license. /sub-article 3c/
Promotion and regulation of transaction of
precious minerals
Proclamation No.651/2009
 No person shall carry out the transaction of
precious minerals unless he/she is registered in
the appropriate government office and is a holder
of an appropriate and valid license or Certificate
of Competence as appropriate. /Article 4/
 Any person who has been issued a license in
accordance with the appropriate mining laws is
not required to have a Certificate Of Competence
or license pursuant to this proclamation in order
to sell locally or export abroad the precious
minerals it produces./Article 2/
Types of licenses
/ for transaction/
Precious minerals
brokerage license;
Precious minerals crafting
license;
Precious minerals refining
license.
Types of Certificate Of
Competence
Precious mineral Trade
Certificate Of Competence;
Precious mineral Export
Certificate Of Competence;
Draft policy of ASGM
policy objective
To encourage, facilitate and regulate
the ASM sectors in order to ameliorate
the operational environment, ensure
optimal exploitation of mineral
resources, and enable these sectors to
make a positive contribution to the
national, regional and local economy.
Policy measures
1.
Establish a legislative
,regulatory and administrative
framework with a view to
promote a safe, secure, just and
profitable artisanal mining
sector that would regulate
among others:
Policy measures cont ……
The issue of mining claims to
cooperatives registered in
accordance with the relevant
laws and to individuals
carrying out their mining
activities themselves;
Policy measures cont ……
 The relation between the miners
and the lawful occupants of land;
 The labor relations within small
scale miners;
 The protection of women rights;
 The control and eradication of
illegal child labor.
Policy measures cont ……
2. Implement measures to assist
women to establish and operate
independent mining cooperatives;
3. Develop and implement mine
health and safety regulations ;
4. Ensure that geological research
and mapping are conducted to
delineate areas;
Policy measures cont ……
5. Reserve and proclaim such areas as
“claim areas” in which cooperatives
registered in accordance with the
relevant laws can peg claims in a
prescribed manner, obtain exclusive
claim licenses, and carry out mining
within a secure and supportive
regulatory regime.
Policy measures cont ……
Establish the basic infrastructure and
services near the “claim areas”
7. Ensure that no artisanal mining, other
than for construction materials, is
permitted outside the area delineated
for such purpose.
8. Support artisanal and small scale
miners to adopt measures that will
promote environmental sustainability
by means of appropriate standards.
6.
Policy measures cont ……
9. Support the provision of
training and skills development
for artisanal and small scale
miners in all areas relevant to
mining, including but not
limited to mining methods, ore
dressing, marketing, etc.
Policy measures cont ……
10. Provide intensive environmental
management guidance in areas where
there is a high concentration of artisanal
and small scale miners
11. Make available experts to train and
assist artisanal and small scale miners in
the optimal recovery of the resources
and safe working conditions.
Thank you