FEDERAL NEGARIT GAZETTE - chilot.blog · mining license holders. and the amount of all payments made by the mining license holders to the government: 431 'mining development period'

FEDERAL NEGARIT GAZETTE OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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20'" Year No. 27 ADDIS ABABA 19" March 2014

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CONTENTS

Proclamation No. 81612013

Mining Operations (Amendment) Proclamation ... .... ........................... ... .......... ... ...... Page 7296

PROCLAMATION No.816/2013

A PROCLAMATION TO AMEND THE MINING OPERATIONS PROCLAMATION

WHEREAS. it has become necessary to amend the Mining Operat ions Proclamation;

NOW, THEREFORE, In accordance with Article 55( I) of the Constitution of the Federal Democratic Republic of Ethiopia. it IS hereby "rnciAimed as fo ll o ws:

I.

2.

Short Title

This Proclamation may be cited as the "M ining Operations (Amendment) Proclamation No. 816/2013",

Amendment

The Mining Operations Proclamation No. 678/20 10 is hereby amended as fo llows:

II sub-article (2) of Article 2 of the Proclamation is deleted and replaced by the following new sub-article (2):

"2) 'artisanal mining' means a mining operation carried out by individuals or small and micro enterprises which is mostly of manual nature and does not involve the engagement of employed workers;"

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paragraph (a) of sub-article (19) of Article 2 of Ihe Proclamalion is deleled and replaced by Ihe following new paragraph (a):

"a) water other than geothermal water that may be used for bathing, recreational and therapeutic purpose or water used for the extraction of any mineral such as brine;"

sub-article (20) of Article 2 of the Proclamation is deleted and replaced by the fo llowing new sub-article (20):

"20) 'mining license' means large scale, small scale, specia l small scale or anisanal mining license issued pursuant to this Proclamation;"

the following new sub-article (41), (42), (43) and (44) are added under Article 2 of the Proclamation :

"411 'effective date of a license' means the date where the applicant for a mining license and the Licensing Authority sign a mining agreement or, where it relales to other mining operation license, the date the Licensing Authority sign the authorization letter;

421 ' extractive industry transparency initiative' means a coalition of government, mining companh:s and civil societies established to disclose to the publ ic the revenue government received from mining license holders. and the amount of all payments made by the mining license holders to the government:

431 ' mining development period' means the period between the Licensing Authority and the mining license holder sign a mining agreement and the commencement of the mining. duriag which the construction and d~eJopment works required to 0,.., the mine, exlract, crush,

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441 'special small scale mining' means mining operation of gemstones or placer resources of gold. silver, platinum or tantalum of which the annual run-of-mine does not exceed the limit stated in paragraph (a) of sul>-articl. (35) of this Article, which is carried out by individuals or small and micro-enterprises who were the holders of artisanal mmmg license and have sufficient financial capacity to employ modern machineries and equipment in such operation."

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51 sub-atticl. (5) and (6) of Article 9 of the Proclamation are renumbered as sub-article (6) and (7), respectively. and the following new sub-atticl. (5) is added:

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"51 special small scale mining license;"

paragraph (c) of sub-articl. (3) of Article II of the Proclamation is deleted and replaced by the following m;;:w "'IlIIlSlllph (1;) :

"c) a non-citizen of Ethiopia or a group of persons who are not registered as a small and micro­enterprise: in accordance with the relevant law where it is for arti sanal or special small scale mining."

the following new sub-article (3) and (4) are added under Article 22 of the Proclamation:

"31 Notwithstanding sub-article (I) and (2) of this Article. the Licensing Authority may allow renewal of an exploration license without relinquishment of a portion of the license area:

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II ) "'I'g'O>9" f9"C""6' / » Ir a) where the licensee applies 'It\ t.~ t.· 'lh'ia>'I0>- rY"coo?- for and able to prove a /»/,. Y"'IM':') 119"')"")' discovery of mineral (lI1"?";.,.') t,I. :Y?(ll t'9"C'}' deposits and the need to / » (.. t.J'1.· 'l'J'</: 1I"'I.fl-l1 undenake pre-feasibility or Y'l-Y:oo I,.,,,,,~ ~ .)· oW.?" feasib ility st udy to apply for t't,IP"'J;t-'1 ')' 'J' li')' l1IJh 'ian mining license; or

h ·)1."'I.J'iM.&l1a> (U'oollh'l-! b) where the licensee is unable 01,1'.9"

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to undenake the exploration activity in accordance wi th the approved work program due to reasons beyond his control as defi ned by regu lation; provided. how­ever, that the licensee shall notify In writi ng the occurrence of such circumstances and get the acceptance of the Licens ing Authority,

The renewal of an exploration license may not be allowed:

a) morc than twice. in the case of paragraph (a) of sub­anicle (3) of this Anicle; or

b) more than once. in the case of paragraph (b) of sub­anicle (3) of this Anicle."

sub~art i c/e (2) of Anicle 30 of the Proclamation is deleted and replaced by the fo llowing new sub·article (2) and (3):

"21 The holder of a small scale or large scale mining license shall :

a) commence mining wi th in two years from the efTective date of the li cense: and

b) comply with terms and condi tions of the license.

31 The Licensing Authority may. by taking into account the nature of the mineral. the mineral deposit and the mine site and following the criteria determined by regulation, conclude a mining agreemenl by extending or sh0l1ening the period rd'crrc:d to in sub-nr1iclc: (2)(1I) of this Article."

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UI 11M')!: 1tt.'''''I\' 0111 Mit t.'H'I\' itC 91 the articles from Article 32 to Micle iii,')' 1>.·I!!.~!!.\I" 'NI'~~'I'''' Ith 'I-l-/l' 83 of the Proclamation are renumbered 0U MIlt h',"'/I' ii"li If~'" f"'1.h·M.·)o to Article 34 to Article 85, respectively, h"'l1 h',"'I\' 0111 Ar,' h',"'I\' o1If~ and the following new Article 32 and ,~t.U.!I"l'l'A'- Article 33 are added:

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"32. Granling Sped a! Small Sule Mining License II The Licensing Authority

shall grant an exclusive special small scale mining license where:

a) the proposed work program is approved;

b) the applicant proves that he has financial capacity to conduct the proposed mining operation;

c) the environmental impact assessment has been approved; and

d) the applicant was holder of artisanal mining license that engage in the mining of gemstones or placer gold. silver, platinum or tantalum and is not in contravention of any obligations related to it.

33. Duration and Renewal Of Special Small Scale Mlnlnr Lircgsc

11 Special small scale mining license shall be val id for the period specified in the li cense; provided however, that such period may not exceed 10 years .

21 Special small scale mining li cense may be renewed for a period not exceeding five years each subject to sub­article (3) ofthi, Article.

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)) ftllh'''~: ml,9" fM:" '~: 1.01 "'161.'" "'19"1.,). 'IM,:I>I.· 1I.1f·) f h. ')'r-A' J' "'161.") h.')'l-Il-),t "It.\,.I')' U,i\":-li hlJt.\ Yoo"'1 h~' 1l00'1"IIl-)' '/0. J'f.1.1a>', 1'Illil 11,),1/0· "lilt. '}.. f "'II.' (. "I ::"

3/ Special small scale mining licensee shall have the right to renew the license, provided that he has fulfilled Ihe obligalions specified in the license, and is not in breach of any provision of this Proclamation, regulations or directives which constitute grounds for suspension or revocation o f the li cense."

101 sub-article (3) and (4) of Article 34 of the Proclamation (as renumbered pursuant to sub-article (9) of this Article) are deleted and replaced by the following new sub-article (3) and (4):

"31 An artisanal mining license shall be valid for Ihe period specified in the license, provided however, that such period may not exceed two years.

41 Artisanal mining license shall not be renewed."

III Ihe following new paragraph (m) and (n) are added under sub-article (I) of Article 36 of the Proclamation (as renumbered pursuant to sub·article (9) of this Article):

"m) report 10 the Licensing AUlhority the quanlity and type of mineral mined each month within 10 days from the end of such month and sell the minerals mined every financial quarter within 30 days from the end of each financial quarter and notify same to the Licensing Authority;

n) in the case of a small scale or large scale mining license holder. be a member of the Ethiopian Extractive Industry Transparency Initiative and to disclose 10 the public the payments effected to the government. "

,. X1[f..U lJ,1 .. /\ ~:Jt.-l' :JILn, ..,,,.C: It!, 11D.:>tl.-r :r: 4-" rjU 't .V" Federal Ne Brit Gazette No 27 191h March 2014 ...... e 7]02

if I Yh'!'~; h')"'''' :'i ")0·11 ~,')"'''' (Ii) 121 sub·article (I) of Article 40 of the (1I11.Il h')·,·,.· ')lJ.fI 10')<1'''' (ii) Proclamation (as renumbered pursuant ,,,,,Pt..'" ":1'''i, "·1,(,·tll·tt,htlm·) to sub-article (9) of this Article) is "'nC~ n"'l.hNIO>- t,ll.lI '10·11 h·lt", deleted and replaced by Ihe following (Ii) '~'~h;J:A :- new sub-article (I):

"M h",,'t-j·<; ).'," hoo4'V')' t.:N'.'f· nll'~"'c "'IWa>-9" t.:i'Y: t .:/' Y.; 1I(.J;t.0>-·) qIlllAtTJ·) nH·"'I.Y n"'lftt."'~; /I.·'·~M' ).','f·~A! lf~'9" V'IU~'P. IDY.9" AI' YMII'''~: J'.l.1l "'1M.") "'19"1..).

1"6· t.n: no>-cil "~lIf~ nll'~"'c /I .· ' ·~M' hy.~"A9"::"

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";:1 "'I.g: 0>-9" f "'10)1;') "'19" t.-l. 1"6- '111t.,.J:' n/l.u h')"'''' ')0·11 h ')o/'I\' (K) Noo/lh'~')") "'I(}J:'<; ')' nMC a>-1I'l' ID ).'.9" Wy.o>-"I~ ~,lC noo~h ooi'i'l' ).','f·~A 1 tf~'9" nlDc"" 1D).',9" n1lC "'I(}J:'~" )' "'I9"{..). ."'t.. ~y, Y" ' u''''I6- Y'IU~'f IDY.9" Af. ft,~M-~: "'IO!1.·~·,)· "'19"1.,).

."'6· '111t.,.J:' 9"C·~·) /I II. -1-1" A' .I' 1l"'-6-'f 'I') II ooi'l'l' h/ln·)·::"

Xiii fh'!'»; 11')4'''' .YIi 1 .Y~ ),~ .. W: (flII.Il 10'14'''' ')()·II 10')"',.· (ii) ",,,,./. ,). 4.'1' t· :,'... h')'( ·,·/I·'·',h/l .. ·) ' f'('C/la>­n"'l.h·,·/I+ M.II ~ •. ).,.", . . Yh' n h~' W: "",.h,,..,,A:- -

"!iIi. f"'l"'lhC (0&'" f1oh'Ll! b7A7l1=t 1I1't "'I?21"l frQb' CII,tt O"77n r"ucll "'I .... MiI'

iii n"'l(}J:") "C~, Y"'I"'IhC <»Y·'F' h·)Y. J:·&tI·)'1 <».1',.,.. f~116 .. r·6 Nh).h MA"IfH' nou~<'t/l")' /P{.. /loo{l"'l&.')' !"''/.t.A·? °n~:IJJo¥" ~d'\"

,.y,/? ·'·In.a>-·) Y"'IuoAh~' h~:J' nooht.A<; V"'IooAh:J' C;C!I" nouoo.~·) · /I"'I.'I.II ·~';' "'Iuutlh')' y,~"~A::

" II Any license, other than reconnaissance and retention may be transferred with prior consent of the Licensing Authority; provided, however. that artisanal or specia l small sca le mining licenses may only be transferred in the case of inheritance."

131 sub-article (3) of Article 44 (as renumbered pursuant to sub-article (9) of lhis Article) is deleted and replaced by the following new sub-article (3):

"31 The holder of a mining license shall have the right to sell locally o r expon the minerals referred to in sub-arlicle (2) of this Article; provided. however. that the holder of artisanal and specia l smal l scale mining license that has engaged in go ld or si lver mining shall se ll the minerals produced to the Nat ional Bank of Ethiopia."

141 Article 5 1, 52 and 53 of the Proclamation (as renumbered pursuant to sub-anicle (9) of this Arti cle) are deleted and replaced by the following new Art icle 5 1. 52 and 53 :

"S I. AppliutjoQ for Certjficate of

Competence (or Consultapcy or Jecbnjcal Serykes

1/ Any Ethiopian who wishes to engage in providing consultancy service or technical service such as drilling or laboratory service to the mining sector may apply to the Ministry for a ceni ficale of competence b) paying the appropriate application fee and completing the appropriate form .

• ~7if.rr. LI.t..A ).71.+ ;) /1/11 -liTe Kr. D'D;.I(l.t X 'I"} !ri'i.X " .9" Federal Ne.8orit Gazelle No, 27 19,h March 2014 .... . pase no'

MI "·I).II-t~. "'ioU I,Hlt ·10·~ 21 The Ministry shall accept and 1,'Hr, (~) f ·,·""tlh·''-}· register the application for (/.'/.;t-P'".f' ·t"J.A·'·(J)o fl.?"';' certi ficate of com petence if the f1l.4>·)· uttl.:J11ft.), f~flhC requirements specified in sub~ rol.,,')' "'IooAh;f(J)o') article (I) of this Article are "'1'1lt1- I?,UDII"ln'l' A:: met,

Jr. r"l"lbC CD"'" ftb'Lh MA"lh-+ -11.,.+ ""21""!. frObC lD'tt OiItlDOmt

hi n"'l"lhC "?A"lfIo')' /»/" ~I?, tloo""'It-·)· f"'l,$'ootlh') ' i\a> ~onllh'I'n ') ' 00' Y MJA'I,a> ),a>.,,·h· y/u&.

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~I "'I""Ah~:(J)o f."l.nro· ),'IY. ~'&II:)"I rof.?" ~llt-'M

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[:1 fll"") ' roL.4'·)·

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"Jt.;t=

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f"~I1C mU')' f" ' f1I11(J)o flo> n"~hC rol4"~ ~f, n·tootlh·'·(J)o f"l{)y:') Ft-HC~:

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n"'l"'l hC >t'Il} "111-')'

r·"''1mro·

rof·" P't·O}·

52. Issuance or Certjficate oC

53.

Cgmpetence Cpr Consultanu or

Technical Services

II The Ministry shall issue a certificate of competence to an applicant where it is satisfied that the app licant has the necessary qualification and experience in the area of consultancy he wishes to engage.

2/ Where the application is submitted to engage in provision of technical services such as drilling or laboratory services, the Ministry shall Issue a certificate of competence after confirming that the applicant has the necessary technical stafT and equipment for the intended services.

3/ The valid ity, renewal and revocation of a certificate of competence shall be rrp.c::r. rihp.d hy rpguilui("ln

Rights and Obligatipp or a Holder of a Certificate of Competence

1/ A holder of a certificate of competence granted in accordance with sub-article (I) or (2) of Artic le 52 of this Proclamation shall have the right to provide the consultancy or technical service in the area of mining operation as specified in the certi tkate.

2/ The holder of a certificate of competence shall be required to obtain the necessary business license from the

tt XIU..... J...1.1. .l\ ~ :Jt. -l' :JU.ffl 4t1'1: ., DII.?O. .~ . ' e ffi '_~~.~"ro~· ~~~~±-~~~~n~.~~~t~·~· ~~~1~1~~~~~·.f~~F~d~"~'~IN'~'~"~G~a~Z~CII~C~N~O~~27~1~9~'· tM~"~'~h20~1~4~ .. ~ .. ~~C~7ft'~~_ hoo""'I6-'I: o~A' h"''1l1 appropriate government a Ice

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"/if "'IWro-9" 'l1lt.:I'1.· 1I"'1.Y', '1.Y.ClJ­f"'loy .. ·) P'tr ont,·)·

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lSI

161

171

181

service,"

paragraph (a) of sub-article ( I) of Article 54 of this Proclamation (as renumbered pursuant to sub-article (9) of this Article) is deleted and replaced by the following new paragraph (a):

"a) issue art isanal and special small­scale mining license;"

paragraph (al of sub-article (2) of Article 54 of this Proclamation (as renumbered pursuant to sub-article (9) o f thi s Article) is deleted and replaced by the fo ll owing new paragraph (a):

"3) issue reconnai ssance, exploration, retent ion and mining licenses other than those to be issued by a Regional State Licensing Authority under paragraph (al and (b) of sub­article (I) of this Art icle;"

the following new paragraph (k) is added under sub-article (4) of Article 54 of the Proclamation (as renumbered pursuant to sub-article (9) of this Article);

"k) disclose to the public the rcycnuc collected from mining:'

sub·article (I) of Article 60 of the Proclamation (as renumbered pursuant to sub-article (9) of this Article) is deleted and replaced by the following new sub-article (I):

"I I Where his mining operation requ ires the expropriation of land. any licensee shall pay compensation to expropriated land user and property in accordance with the appropriate law issued to compensate such expropriation."

_ _ ~_~ __ ••• _ """ 4._. __ ~

'Ut ~1if.l 1...1.(,.11. ~ .')/. ·l · :m.'" "'1'C: KX -,:J(l+ l .,. .) "i"i.~ "t ."" Federal Ne urit Gozette No. 27 19'h March 2014 .. " a c 7.105

XIii fll'l':O; t,·)<j>1 .. :SA (1111.11 "')'/'1\' ')MI 191 Article 61 of the Proclamation (as "'''''1\' (ii) " .. ,,'t.,). ,/,'1'<, renumbered pursuant to sub·art icle (9) ,,·)~., . ,. . , . tlhtuu.) ·,'''Clt nl17.h+'uJ)· of this Article) is deleted and rep laced 1,'1.1l t,')"'I\' ;-,'/\ '/"/'h;/:A:' by the following new Article 61;

"~6 , 1]'" ~1l""Ah'" M"t+CiI ht\.-f>;l-C; "'7I\'S

M 111)') MouAhf· f"'l . .,.CiI I, t\. . ~ ". w J.'.'l" .1',,,/ II 'l yoot-·)· j!,/';J-') t\Ol/i1 'I' '1-9" (loll A 1\ "'IIIIH'I-<; I\ ')ill ') ' 111'\ M"'I.ht.AO·)· IJ' '';J- I\oown') Ilw"l /, "I'IiI '111m- ,n"l 0011' l.-)­K.t.R"'IA"

~I k in: n(,l;). (110 IIMA"I"I h"'lM':') 1" 6· ;JC 11'" J'.I'II out-·)··) II'~ llouht.A "'III 1\.,.'1- I. 1It.l1 1. 11 "'I. If') n-). 1.IL OUl.·)··) lI,n lli1 'f't9" III) ,,.M:/I- h·I'I.II ."." f "'11: l. "I I" A "1"1 h'/'nmw- ou,"''''.!' /1, .). ;JC llouODllhC 1"6'(110 IlM'''I'!

f"'l.t.VY"n-l··) II'''''' fou~:~:A::"

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""'I I. 11M . .:/' Y,' fllt-l·.,.C "'I'»,'w,9" f"'loY,") "'I9"d' IlfIt,?Y,' ~' h·)Y. 1,,,/1111, f"'101:') 9"Cou{,. 'IfIt,?~·

Ilt.? Y,' hAil· M' 11119"9")-)-1l"'l.W(l') Ilt.".I: hAil· 1,111111. II"'IS<· )'I'tfD~'· f"'lUlllnil A"'I ')' lit Y,' ool)·"~: 'i fllI.U f"'l.J'M,~ "I W(,];l. ooouj'.i1 hl\ll')':: "

'fiiil fM'~·. h',."l!.· ~;: ')(l.1l h')"'II' (ii) (11//.11 ,,'''''11' ')(1,11 ,,'''''11' (ii) m,,"t.·)· ,/,'1'<' h·)~·/'fH· 'lhlltll· )

.,.1\1:11 1I'"I.II.,.lIm· hJl.1l ,)(,·11 " ',."II·(A) ·,..,·11;1:/,\ ,.

"61. Complaint and Appeal as Regards to Compensation

II Any complai nt or appeal related to compensation shall be determined in accordance with the appropriate law issued to govern expropriation of land holding for public purposes and payment of compensation .

21 Where it is required to expropriate land for the purpose of mining operation the Licensing Authority shall facilitate the speedy execution of the process in collaboration with the appropriate authori ty empowered to expropriate land holding for public purposes and payment of corn pensation .'·

201 sub·article (3) of Article 62 of the Proclamation (as renumbered pursuant to sub·article (9) of this Article) is deleted and replaced by the following new sub-article (3):

"31 Any mining licensee other than an arti sanal mining licensee and. as appropriate, an explorat ion li censee shall partiCipate in community development plan. to be determined by the license area and by agreement, and sha ll allocate money for such expenses. "

211 sub·article (I) of Article 63 (as renum bered pursuant to sub-art icle (9) of this Article) is de leted and replaced by the following new sub-article ( I):

iJ,('·A ) :Jt.o}- :JILI', ", ... C ~~ -.:KI.+ :( -t '} K i'i. ~ 'l .Y" Federal Ne rit Gazette No 27 19,h March 2014 . . ... . c 7J06

"iii Af. fMIH-'1 , fMIH''1 "WI" fM:·,.'1 "..:l!" I'''M~ '' '"/lI"': ')' II (~ '1/'1.1. .'" .r.- 11'"/. 11.,./'1· .). 1J · ~:J·9Jif· f #'7/Lf!:"' / ut. mJ'U:J,l-fll"lI11r: .. .:./,.). ;>") .1;.1'11110"

~ . .'''Y: 1'I1., •• m··) I] II II A "1"1 I'I,tnf,o}> f,~" ~A ,-

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"n) f.,hY:V) II(~ /'1../ .... ::"

IW f II'P~; h ',."'. ~li '/0·11 1,'.",' (~) ~".A .,.t.. ( /I) (fI,/.I) 11')</'11' ')IJoI'l

h 'H/I' (iI) tn""/.')' '/''1'<. ,, ') ~·/·(H·llh/'l .. ·) ' /'/'lC~ n"'l.h.,.lIm­M.1l U .A ·I·t- (/I) ·""·h~:A : ·

"/I) /'Ihn~ "'I6J!:~" ) ' t nOD'r·!"

lirl fh'P~ h 'ltlt :sli 'IO·1l h ')o/'lt (r) (1111,11 h '/</'/1' ')(l'1I II ')4'1\' (il) ,~"'.: .) . '/''I' ~ . ;>"'''' ,"11,"" 1111 m·) '/'/'lC,' n"'l.h·"''1m- M .1l ·W·1l I, ') '~l\' (0 '/""h~:A :-

"rl fI'I'W/~ ' flAr. fMfH''1 ;>.<; flMII' /' '1 ".I.lf "'M.r.- ·) '"19"1.')' lit- '1/'1.1.;) '.1' (''''lll.l./'Im· fC' ,fl'l, '/; ,,"tn') IIIIAA lin· Y.tnt""; t.\ I ,"

IiW fll'P~; I, ·/+lt ~~ ' )MI II'/+)/,' (e) (fllI.1I h'H'II" '}(I-{l h').,.)/,· (ii) '~"'I. .l- '/''I'~. ;>' ·''''·'·I'I ' / ·',IIl1m·) '/'/'lC,' n"'l.h '/'I\+ MI.II ')M , I,'H"" (el ,,~. (~) ' '''''h~:A :-

"f~1 t .J'1.· 1If.Il.m- 'lMA"1') "" /0, rr~' n.Y'f'ia> "'I'g'm-r "'I()!'.'" "y"(. r f~:ODI. '1M.J'1.· lI . h~:IIm­f".1'1m- ') fl!' fll.of; h~:f IIOD'~~Il '

II1.1Lm- 11"'1'1"')' roM" II.,Mt,-)· /,".11'7110' 1I":I.fI-l·C')', rhC 1\.')' IDW!" "".oollh·,·o> fllAA fM J', ~III'IAnl'l 11<"1] n"'l~' (,11 lI. f l'llDlrI f.:r·~A ::

" I I The holder of special small scale. small scale or large. scale mi ning license shall apply to the Licensing Authori ty for a m mc closure certificate upon:

a) revocation of the license:

b) terminat ion of the mining operations;

c) re linquishment of the whole or any port ion of the license area; or

d) abandonment of the mine."

221 paragraph (a) of sub-article (2) of Art icle 65 of the Proclamation (as renumbered pursuant to sub-article (9) of th is Art icle) is deleted and replaced by the fo llowing new paragraph (a):

"a) precious minerals 7%;"

231 sub·article (3) of Article 65 of the Proclamation (as renum bered pursuant to sub-article (9) of this Article) is deleted and replaced by the following new sub-arti cle (3):

"3/ The amount of royalty payable by the holders of art isanal. special small scale and small scale mining licenses shall be determ ined by the laws of the ReQ. i nn~1 St~ t p,.;;: ..

241 sub·article (3) of Art icle 66 (as renum bered pursuant to sub-article (9) of th is Art icle) is deleted and replaced by the following new sub-article (3) and (4):

"3/ W here the Licensi ng Au thority deems it appropriate it may cause the reduction, temporary li ft ing or waiver of the liability to pay royahy of a licensee of an operati ng mille by recommendi ng and securing approval from the Council of M inisters or the concerned higher regional authori ty. as the case may be.

.,. r,7tf. .~r, LI.t..l\ .,.')" ..... ')IL"I "1'1. ~,; 1JO;J(l+ .~ -1") Wi'i.~ 'HOI Federal Ne arit Gazette No. 27 19111 March 2014 ...... c 1~7

jj/ OH.U h')4'''' ')0·11 h')4'''' (I~) oolld· fC'flV': M:Y 11004')11

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41 The detailed crileria for reducing. temporary lifting or waiver of royalty in accordance with sub-article (3) of this Article shall be determined by regulation."

251 sub·article (2) of Article 67 (as renumbered pursuant to sub·article (9) of Ihis Article) is deleted and replaced by the following new sub-article (2):

"21 income tax to be paid by holders of artisanal. special small scale and small scale mining licenses shall be determined by the laws ofthe Regional States."

261 Article 72 of the Proclamation (as renumbered pursuant to sub-article (9) of this Article) is deleted and replaced by the following new Article 72:

"72. Government Padicjpation

271

11 Without prejudice to its right to undertake mining operations under Article 8 of this Proclamation. the government shall acquire without cost a participation interest of five percent of any large scale mining investment. An additional equity participation of the government may also be provided by agreement with the licensee. which shall specify the percentage. liming. financing. resulting rights and obligations and other details of such participation .

21 The rate of government participation interest without cost and concerning additional equity participat ion in small scale mining shall be determined by laws of Regional Sates."

sub-article (2, (3) ) and (5) of Article 75 of the Proclamation (as renumbered pursuant to sub-article (9) of th is Article) are deleted and replaced by the following new sub·article (2). (3) and (5):

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"21 Any equ ipment. machinery. vehicles and cOl1sumables lhat any holder of a special small sca le. Sill a ll o r large scale minin g, li cense or hi s contractor may imp0l1 into Ethiopia and requ ired for mining development period In accordance with the mmmg agrccmcllI and the approved work program shall be exempted from custo ms duties and taxes: provided. however. Ihat the right to impllrt equipment. maChinery and veh ic les free or c ustOms du ties and ta x may 11 01 be applicable after fi ve years slaning from the dale of production .

31 The holder of a small or large sca le mining license may. wi th in the period specified in sub-article (2)(a) o f Article 30 o f thi s Proclamation. import free of customs duties consumables required to start and sustain commercial production for the fi rst three mo nths,

51 Except the ho lder of art isanal mining license or specia l small sca le mining li cense that produce gold o r s il ver. any ho lder of _ min ing li cense sha ll be entitl ed 10 export free o f customs duties and taxes minera ls produced according to the license,"

281 sub·article (2) of Article 78 (as renumbered pursuant to sub-art icle (9) of thi s Art icle) is deleted and re placed by the fo llowing new sub article (2) :

"2, In the event that agreement can not be reached thro ugh negotiations. the case shall be sett led by arb itration in acco rdance wi th the procedures spec ified in the agreement. An arbitral awa rd shall be bindi ng upon the parties,"

".. Xlff.Y.iI 41./..1\ '1:)(.01' .7,L"1 ",,,'r. KX aD.:>f\.t l +., 1i1.X 't ,'" Federal Ne arit Gazette No, 27 19'h March 2014 , e nOlJ

r,

1'1111 Yh'I')!: h')"''''' 'Wf: ')MI 1,"14'''. (Ii) 291 sub-article (I) of Article 83 (as (flI/.1I h 'HoY,' "MI t,·,·/,y,' (iI) renumbered pursuant to sub-article (9) m,"'I.'}· .,11'.... ~·,t..,.f'I . ' .t lh""'.) of this Article) is deleted and replaced 'I'I'ICI' 1I"'I.hNIID' 1111.11 '10·11 h')</>)I,' by the following new sub-article (I):

(Ii) ' I"/'II~:II\ ' - "I I Any mining license or mining

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11'1'11: 1'.,,"<;11-1- 1,1\. J,

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agreement issued or concluded prior to the coming into effect of this Proclamation shall continue in force for the remaining period of its val idity in accordance with the law in force at the time of issuance of the license or conclusion of the agreement: provided. however. that the renewal of the license or agreement, upon expiry of its current term, shall be made in accordance with the provisions of this Proclamation,"

EUcs;IjYC DI'e

This Proclamation shall enter into force on the date of publication in the Federal Negarit Gazette,

Done at Addis Ababa. this 19th dill)' of Mllrch. 2014.

MlJLATlJ TESHOME (DR.)

PRESIDENT OF THE FEDERAL

DEMOCRATIC REPlJBLIC OF ETHIOPIA