ADDIS ABEBA – Ministry of mines and petroleum has issued three mineral exploration and production licenses to Abay Industrial Development Share Company.
The share company, a public-private firm established with four billion Birr registered capital raised from close to 400 founding shareholders, will explore and produce Limestone, Clay Soil and Gypsum in Amhara regional state.
The production agreement with a 20-year lifespan was signed on Wednesday between Minister of Mines and Petroleum Samuel Urkato (Ph.D.) and CEO of Abay Industrial Demsse Teshager.
The company will invest over 140.7 million Birr to explore and produce the minerals. These activities could create 114 job opportunities and will save foreign currency going to import the minerals, CEO of the company said.
Abay Industrial Development S.C started to construct a cement factory in Dejen Town of the Amhara regional state.
Chinese Hengyuan Group is carrying out the civil work of the factory while a Danish firm, FLSmidth, is expected to supply and install machineries.
Demsse said the total investment on the cement plant could reach 8.8 billion Birr.
The latest mining licenses will enable the factory to gather inputs for the factory when it starts production, said Demsse at the signing event at the ministry on Wednesday.
Once completed within 24 months, the plant will have a cement production capacity of 7,500 tons per day, according to the company.
The cement plant will create jobs for 2200 people when it starts production with its full capacity, according to the company.
“Many more will benefit from the erection of this cement plant indirectly,” said Demsse.
By Sisay Sahlu