Norway-based gold explorer Akobo Minerals is paving the way for a resurgent Ethiopian mining industry by clearing a major hurdle for investors to be granted the right to hold and repatriate foreign currency from offshore accounts.
Last month, Akobo and the Ministry of Mines entered into an agreement governing the future mining of the Segele project, and also opening up the Ethiopian mining sector, by agreeing to the right to hold foreign currency in offshore accounts, and to repatriate profits from the same accounts.
“This has been the most difficult hurdle in attracting international investors to Ethiopia’s mining sector,” the miner stressed in a statement on October 25.
The agreement covers vital aspects of the mine development and operation.
In addition to other rights and obligations, Akobo has secured new terms which promote valuable investment partnerships with Ethiopia, including the right to hold proceeds from sale of gold in overseas bank accounts and the right to freely repatriate profits from overseas bank accounts.
As part of the agreement, Akobo has committed to develop the Segele mine in line with previous plans, alongside the miner’s current drilling programme to extend the known mineralisation.
In line with this, the mining agreement provides the right to extend the mining licence upon continued economic viability of the mine and the fulfilment of all legal and contractual obligations.