Ethiopia Investment Proclamation: Negative List Compliance Guide
Essential guide for foreign businesses to help navigate Ethiopia’s Investment Proclamation negative list and compliance requirements.
Read moreExplore the legal intersection of state land ownership and mineral rights in Ethiopia and discover how constitutional provisions impact mining investments and property compliance.
The legal framework for the sector of mining of rich sources of gold, tantalum, potash, gemstones and base metals is governed by the Mining Operations Proclamation No. 678/2010. Other regulations have been put in place including, Proclamation No. 1213/2020. This aims to ensure the sustainable development of resources, improve digitization of the cadastral licensing system, and provide assurance for investment opportunities.
The fundamental rule is that land and Minerals belong to the State, as set out in the Federal Democratic Republic of (FDRE) Constitution and Mining Proclamation clearly states that; "All land and natural resources belong to the State and Ethiopian peoples".
Minerals found naturally on/in/under the earth are public assets owned by the state.
Therefore, simply owning land will not give you rights to the minerals. Similarly, owning a mining concession will not give you rights to the surface land. The two regimes are completely separate.
What is a Mining Concession?
A Mining Concession (Exploration License, Small Scale Mining License or Large-Scale Mining License granted by the licensing authority) is the right to explore for and extract mineral resources within a defined area. A valid Mining Concession will give the investor;
• Exclusive Rights to work with the specified minerals.
• Limited Area to work within a defined grid area. If they want to mine/discover something that is not listed they would need consent.
• Secure Rights to work for the time period stated on their license, as long as they comply with environmental, financial and reporting requirements.
A common mistake made by both International and Domestic investors is to believe that if they have been granted a mining license at federal level, they can start working. However, in reality, they will face a few challenges; They will need to obtain their mineral rights from the Ministry of Mines (or relevant regional Bureaus depending on what scale of mineral they have) and they will also need to work very closely with the local land administration, as the surface land is often owned by local farming communities/pastoralists/region.
