Ministry of Mines (MoM) announced that it has sold
3,942.2kg of gold to the National Bank of Ethiopia (NBE),
and has exported jewellery and tantalum worth 171.7
This feat, performed in an eight-month period from
September 2010 to the present, led the ministry to
revise its yearly budgetary plan on March 17, 2011,
at a meeting held at the Hilton Addis.
The MoM planned to sell 2,703.2kg of gold to NBE,
and planned to export 3,104kg of jewellery and 43tn
of tantalum during this eight-month period. It sold
3,942.2kg and 6,312.4kg of gold and jewellery,
respectively, and 85.6tn of tantalum.
Currently, there are five major regions involved
gold mining. These are Tigray, Oromia, Benishangul,
Gambella, and Southern regional states, with Amhara
Regional State as a new comer.
Accordingly, Oromia (1,562kg), Tigray (886.8kg), and
Benishangul (687kg) have become the top three gold
producers during these last eight months.
The NBE adds five per cent over the international
market price when it buys gold, which positively
affects the performance of the ministry as it
discourages black market trade and smuggling,
according to Tamrat Mojo, a traditional mines
manufacturing and transaction process owner told at
The fact that the geology tests started being
conducted at the bank itself has also contributed to
the success, he added.
However, the regional representatives who attended
the meeting were complaining that the NBE delays in
effecting payments within a reasonable period of
time, which also affects the traditional gold
manufactures because it is inconvenient for them to
carry the gold for two or more days.
The NBE has established an independent unit
responsible for gold transactions in September 2010,
which increased its performance, so it will be
adjusted over time, Girma Mengistu, a representative
from the NBE responded at the meeting.
The NBE should think of increasing the human
resources at its disposal as the number of
transactions increase, Tamrat told Fortune.