Mineral Resources Potential - Geothermal Resources

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0: Annex 2g9
Annex 5. Mining law and invwtment opportunities in Ethiopia
Policy
The economic policy of Ethiopia envisages the need for the
participation of national as well as international investors in
different economic sectors including mining. The government
realizing the unique nature of mining activities and to encourage
investem in area opted to regulate the mining activities through
laws specifically applying to mining as opposed to other areas of
investment being regulated by the investment laws.
Inveatmea t opportunities
The country is endowed with a variety of mineral resources. All
interested pasons and groups are invited to invest in the mining
industry of Ethiopia.
The Federal Republic of Ethiopia issued a new Mining
Pmla~nation and Mining Tax Proclamation in June 1993. These
laws are the outcome of vigorous research in the field of mining
investment. They replace Mining Proclamation No, 282 of 1971
which governed mining activity in Ethiopia for the last 22 years.
The main objective of the new mining law is to improve the
legal framework for mining investment in the country. Realization
of the shortcomings of earlier laws and policies was very important
in taking the subsequent corrective measures. The future of the
mining sector is now firmly allied to private investment. The
: preamble to the new mining law states that the law recognizes the
significant role of private investment in capital formation, !
technology acquisition and wketing of minds. The Mining
Tax Proclamition No.. 53/1993 is legislation complementary to the
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Mining Proclamation. The Tax Proclamation fully recognizes the
high risk nature of mining investment and provides a liberal reward
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for those who venture into the sector. This can be demonstrated
from the following benefits stipulated in the law: 1
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