NEWS
Ethiopia said it had signed a three-year gold exploration agreement with a U.S. firm called Canyon Resources Africa Ltd.
The Reuter European
Business Report
September 6, 1995
The ministry of mines and energy said in a statement that the deal was signed on behalf of Canyon by Bill Boberg, the company’s deputy director.
The agreement gives Canyon Resources exclusive rights to explore for gold in an area covering 60 sq km (23 sq miles) in Ethiopia’s Adola gold belt in the southern part of the country.
The American company was expected to commence exploration within 45 days and would spend around $ 2.3 million during the initial exploraiton period of three years, it said. No further details on the deal were available.
Ethiopia signed the first gold exploration agreement with a Canadian-registered firm called Golden Star Resources in April.
Golden Star won a three-year exclusive right to explore for gold in in area covering 1,800 sq km in the Dul Project around the town of Assosa in western Ethiopia.
Golden Star Resources was expected to spend a minimum of $10.7 million in the initial exploration period of three years.
Ethiopian mining concern National Mining Corporation and Boliden of Sweden are negotiating for joint exploration rights for a third exploration project at Dawa Digati near the Adola gold belt and an agreement is expected soon, officials said.
The ministry said it was also studying offers for a fourth project near the southern border town of Moyale.
Ethiopia passed liberal mining laws in 1991 that invited foreign capital and experts to participate in the exploration of the country’s hitherto untouched underground natural resources.
In a government exploration programme, Ethiopia identified “possible and probable” gold and other mineral reserves and estimates its untapped gold reserves at up to 500 tonnes. Ethiopia says it also has five major areas where potential oil and gas reserves have been identified. It names the Eastern region of Ogaden and the Western Ethiopia Gambella Basin as key areas where these resources could be found.
A news and opinion journal on Ethiopia
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