Ministry of Mines has signed coal production agreements with eight local mining companies with a total capital of 6 billion Birr.
The agreement has been signed on Thursday among Takele Uma (Eng.), Minister of Mines and representative of each company.
The six companies have been granted with the license because they have finalized the preparatory activities to produce coal mining in large amount and provide it as an input for industries, according to a statement issued by the Ministry.
Accordingly, ET Mining Development Share Company and East Africa Holdings are assigned to develop coal mining in South Western region, and Sun Mining Trading PLC took the project in South region.
Furthermore, Oromia Mining Share Company, National Mining Corporation and Riyal Mining Trading PLC are going to be engaged in mining activities in Oromia region.
Last but not least, Shaqa and Sons PLC and Elnet Technologies Group Company will be working in Benishangul-Gumuz region.
Enhancing productions of coal, job creation, and encouraging local investors to add values in the production of coal are among the objectives of the agreement, said Ministry of Mines.
Coal is among the major minerals found in bulk especially in Oromia region where youth in different areas are organized and engaged in small scale production of briquettes that is being used as charcoal for cooking.
The Ministry of Mines claims that there is 430 million tons of potential of coal in the country.