A Chinese and British oil and natural gas extracting companies have been lucky among the six extracting companies that are actively working following promising signs in Ogaden area, Ministry of Mine, Oil and Natural Gas said.
Responding to questions from MPs during the 42nd regular session of the House of Peoples Representatives yesterday, Minister, Motuma Mekasa said: “The construction of a 700-kms long pipeline that stretches from Ogaden region to Djibouti is to be commenced soon as confirmed highly economically profitable.”
The pipeline is not only to export the natural gas found by a Chinese company to China, but also to be used by other companies, he added.
This would be the first high economic value benefit that Ethiopia would gain from the 70 years’ tiresome and complex oil search efforts.”The government as well as different concerned entities are now working with high level commitment and emphasis in this area,”according to the minister.
MPs also asked the minister to explain why the mines sector-gold in particular-did not contribute as expected and the ministry’s intervention to stop mines contrabandists.
Accepting the gold export did not generated the expected currency, Motuma reasoned out the slowdown of the global gold market, the contraband, limitation in bank’s gold purchasing system and illegal markets are the major hurdles to the low performance.
” Gold and other mines are available in remote parts of the country and 60 per cent of the gold extraction is done by artisan miners under a condition where proper emphasis has not been placed on resulted in more challenges to render the necessary control as well as follow up,” he said.
To alleviate these challenges the ministry is closely working with states, particularly on ways to give priority emphasis on institutionalization.
To cease gold and other mines contraband a committee set at federal level has been taking measures operating jointly with the states and other stakeholders, Motuma told the House.
Government has also been working hard to bring more foreign investment to the mines sector, he said; adding a company would start gold extraction soon as others are on process.
Further, the ministry would bring local and overseas investors to the extraction of new minerals including those found in Guji Zone, Oromia and Tigray states, according to Motuma.
During the 42nd regular session, the House adopted five loan agreements and passed a draft bill on train transport for further scrutiny to the concerned standing committee.