Eight local investors chosen by the Ministry of Mines invest 6 billion ETB to build coal-washing factories.

January 10, 2022

The investments made by the investors are expected to be returned in three years. The eight investors agreed that the federal government would receive 5%, the regional government 2%, royalty fees 4%, and community development fund & taxes 2% of shares. Coal washing is essential because the coals in Ethiopia have impurities like sulfur that decrease the heat value needed by the cement industries. The government prepares local coal grading and price indications because local coal price is three times lower than imported coal.

The investors chosen to sign license agreements are ET Mineral Development S.C (Dawro zone), East Africa Holdings S.C (Dawro), Sun Mining and Trading Plc (Gurage zone), Oromia Mining S.C (Yayu), Realmine Trading Plc (Jima), Shaka and Sons Plc (Benishangul), and Elnet Technology Group (Kamashi). The investors will renew their licenses in 10 years.

The eight investors agreed that the federal government would receive 5%, the regional government 2%, royalty fees 4%, and community development fund & taxes 2% of shares. Coal washing is essential because the coals in Ethiopia have impurities like sulfur that decrease the heat value needed by the cement industries. The government prepares local coal grading and price indications because local coal price is three times lower than imported coal.

The machines necessary to wash the coal will be imported after the investors receive foreign currency. The aim is to make Ethiopia self-sufficient by using local coal.

You May Also Like…

[et_pb_blog_extras posts_number=”6″ show_more=”off” show_author=”off” show_categories=”off” show_comments=”off” _builder_version=”4.14.2″ _module_preset=”default” header_level=”h3″ header_font=”Averta Black||||||||” global_colors_info=”{}”][/et_pb_blog_extras]