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388 Diagnosing Corruption in Ethiopia
Figure 9.1
The Licensing Process in the Ethiopian Mining Sector
Ethiopian national
Non-Ethiopian national
discovers indication of minerals
and satisfies conditions
obtains discovery
certificate
obtains
prospecting license
discovers indication of
minerals and satisfies conditions
obtains
exploration license
shows that minerals can be mined on
economically viable basis and
satisfies other conditions
will mine only by hand
has necessary financial resources,
technical competence,
professional skill, and experience
annual production more
than quantity specified
in regulations
annual production less
than quantity specified
in regulations
obtains artisanal
mining license
obtains large-scale
mining license
obtains small-scale
mining license
Note: Possession of a discovery certificate or prospecting license gives a preferential right to an exploration or
mining license for the particular area. Similarly, possession of an exploration license gives a preferential right to
a mining license.
relevant technical and financial conditions). Alternatively, an Ethiopian
national can skip the discovery certificate and exploration license and
apply directly for a mining license. The type of mining license depends on
the method of mining and size of the reserve.
Non-Ethiopian nationals have the same rights and follow the same
procedures as Ethiopian nationals except that they cannot search for
minerals without a prospecting license and cannot apply for an artisanal
license (the right to mine by hand).
Figure 9.2 illustrates how an application for a large-scale mining
license is processed at the federal level. This procedure tries to balance
the potentially conflicting rights of the federal, regional, and city governments
(because, for example, a regional license may already have been
granted over an area sought by a mining company for a federal license).