Ethio-Chinese Joint Geological Study

On October 11, 2012, the Chongqing Bureau of Geology and Mineral Exploration and Development and the Ethiopian Ministry of Mines and the Ethiopian Geological Survey officially launched a geological and mineral development cooperation project in Ethiopia. On December 5, 2011, the Ethiopian Ministry of Mines and the Ethiopian Geological Survey and Chongqing Bureau of Geology and Mineral Exploration and Development of China signed a Memorandum of Understanding (MoU) that enabled the two sides to cooperate on geological and mineral development. Sinknesh Ejigu, Ethiopian Minister of Mines, and Wang Li, Director General of Chongqing Bureau of Geology and Mineral Exploration and Development signed the agreement on behalf of their institutions respectively. From this collaboration, the Ministry of Mines is working with the Mines Bureau of Chongqing State to prepare maps for mining investment covering 120 square kilometers in the southern and southwestern portions of Ethiopia. The Chinese experts presented a project proposal on March 28, 2012, which went under Ethiopian review. The mapping would take 5 years to finish (would start in 2013) and cost 10 million dollars, coming from the Chinese Bureau. Three million dollars will be a part of upfront costs incurred in the first year of the project. They will also send 40 experts to assist. The geological maps and drilling tests that result will help encourage international and local companies to invest in mineral development and exploration. Overall, the project would help Ethiopia reach its plan to increase coverage of mapping from 50pc to 100pc, increase areas for industrial exploration from 48 sites to 77, and thus have a better bargaining position with the generous supply of minerals specified. As of December 2013, other Ethiopian and international mining companies have protested this project because they also want to participate, but are barred from doing so. The current status of the project is unclear.

Additional details

It also seems as if Sino Tech Ethiopia (Sinotech Minerals Exploration Co., Ltd.'s branch in Ethiopia) is a contractor in this project, but this is still unclear.

Number of official sources

1

Number of unofficial sources

4