BusinessNews

Local Firms Sign Deals with Govt to Produce Gold in Gambella, Benishangul

ADDIS ABABA – Two local mining companies signed agreements with the government on Wednesday to produce high grade alluvial gold in two western regions of Ethiopia.

Mining Minister Habtamu Tegegn signed a contract agreement with respective managers of BEAKA Total Trading Pvt Ltd and L-Net Technology Group – both Ethiopian registered companies owned by local investors.

Under the 4-year agreement, BEAKA Total plans to mine for gold over Mangish woreda Gambella Regional State.

The company said it will start producing gold after completing the construction of a 138.6 million Birr production plant project in two months. It aimed to produce 911, 697 kilograms of gold over four years.

L-Net Technologies Group, on the other hand, secured a 10-year agreement to produce gold from mining sites in Assosa and Hudulu woredas of Benishangul Gumuz region.

The Group will invest more than 148.2 million Birr on the production plant project with a plant to produce 440.58 kilograms of gold in the next 4 years.

Gold is Ethiopia’s second-largest export revenue generator after coffee and earned 546 million US dollars last 2021/2022 fiscal year, although that revenue is expected to significantly drop this year due to illegal cross border trade.

News agencies