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The Ethiopian mining sector
Author(s) -
Walrond Grantley W.,
Hailu Girma,
Selassie Wondemagegnehu G.
Publication year - 1991
Publication title -
natural resources forum
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.646
H-Index - 49
eISSN - 1477-8947
pISSN - 0165-0203
DOI - 10.1111/j.1477-8947.1991.tb00139.x
Subject(s) - government (linguistics) , private sector , business , constitution , mineral resource classification , state (computer science) , state ownership , mining industry , natural resource economics , economic growth , finance , economics , political science , emerging markets , mining engineering , engineering , law , philosophy , linguistics , geochemistry , algorithm , geology , computer science
The Ethiopian Constitution of 1928 vests in the state ownership of all mineral resources. However, the mining code of 1944 recognized the right of individuals and private companies to explore for and develop those resources. The results were quite impressive; Ethiopia became a producer of gold, platinum, copper and other minerals. A revised mining code in 1971 further extended the rights of individuals and companies to develop the mineral resources of the country. In 1974, the newly established revolutionary government eliminated private ownership of mines and established instead state‐owned mining companies to develop the mineral resources of the country. In time, the demand for government funding by other sectors of the economy left little for the mining sector and it went into decline. To correct that problem, the Government of Ethiopia in 1989 decided to again make private ownership in the mining sector legal. This paper describes some of the recent initiatives to open the mining sector to private enterprise.