Mining Operations Proclamation No. 678/2010.

This Proclamation governs the conduct of all mining operations and related activities within the territory of the Federal Democratic Republic of Ethiopia. It shall ensure that the country’s mineral resources are developed in an orderly and sustainable manner. The Government, acting through the Ministry of Mines and Energy or a state organ in charge of the mining sector as appropriate (“Licensing Authority”), shall control and administer mineral resources and grant, refuse and manage licenses. Land may be reserved by Legal Notice of the Ministry under this Proclamation for mining operations. No mining licences (a reconnaissance licence, an exploration licence, a retention licence, an artisanal mining license, a small scale mining licence or a large scale mining licence) may be granted within areas reserved for natural habitats or national parks or within 500 metres from the boundary of a village, city or water reservoir or dam without the consent of the competent body. Any Ethiopian may conduct reconnaissance without having license provided that he does not interfere with the rights of a licensee or any other person.
As a general right, the licensee may use, subject to the relevant water laws, water from any water body, situated on, or flowing through, such land or sink a well or borehole required for mining operations. As a general obligation, the licensee shall conduct mining operations in such a manner as to ensure the health and safety and comply with the applicable laws pertaining to environmental protection. The Licensee shall also, among other things, take proper precautions not to interfere with other legitimate occupants of the license area, the land covered by a lease and adjacent land. The Licensing Authority may suspend mineral rights partially or fully where it believes that the activity of the Licensee is likely to become an imminent danger to the local community, the environment. A licence may be revoked if the licensee is in breach of the approved environmental impact assessment, and of safety and health standards. Except for reconnaissance license, retention license or artisanal mining license, any applicant for a license shall submit an environmental impact assessment and obtain all the necessary approvals from the competent authority required by the relevant environmental laws of the country and shall allocate funds to cover the costs of rehabilitation of environmental impact A licensee shall also participate in community development plan of the peoples within the license area, and shall allocate money for such expenses. The grant of mine closure certificate in no way relieves the licensee from the responsibility to monitor environmental effects after closure of the mine as required in the environmental impact assessment and shall not release the licensee from the liability of performing the duties imposed upon him and due to be performed during the term of the license. A Mining Operations Council shall be established to advise the Ministry. Compensation shall be paid by a licensee to expropriated land users.