DRAFT MINERAL RESOURCES DEVELOPMENT POLICY · 2020. 10. 14. · DRAFT MINERAL RESOURCES DEVELOPMENT POLICY1 1. Introduction For a country striving to transition from absolute poverty

DRAFT MINERAL RESOURCES DEVELOPMENT POLICY

OCTOBER 2020

ADDIS ABABA, ETHIOPIA

DRAFT MINERAL RESOURCES DEVELOPMENT POLICY1

1. Introduction

For a country striving to transition from absolute poverty to a level of affluence through a structural

transition process, harnessing its natural resources including minerals is an important milestone. To

accomplish Ethiopia’s vision of becoming a middle-income country as indicated in a time table and

to build its industrial development capacity through the modernization of agriculture and

manufacturing industry, the country needs to properly develop and utilize its natural resources.

Even though mineral resources are vital for development in many ways ranging from meeting the

large portion of industrial demand to contributing to the national economy through foreign exchange

earnings and competitive mineral industries, the recognition given to this role in different

development plans of the country issued at different times, Ethiopia has not yet fully benefited from

developing its mineral resources. Particularly:

1. The country is not benefiting from the mining sector due to incongruent sectoral goals,

absence of integrated institutions, lack of awareness in the types and definitions of

minerals, negative perceptions about the sector with regard to development, environmental

protection and social benefit;

2. The mining sector requires a special recognition and due attention owing to its unique

attributes such as the fact that minerals are non-renewable resource, their price are volatile

in the global market, and rents dominate the mineral industry;

3. The sector is linked with issues of sustainable development, especially environmental

protection, land use, societal benefit and social security;

4. Mineral resources development involves risks; it requires relatively high investment and

technological capacity; thereby, it is requiring special attention and a guarantee for long-

term security;

5. Mineral sector development has strategic and geopolitical implications involving global

stakeholders;

6. In the realization of Ethiopia’s goal towards industrialization, mineral resources

development plays a crucial part/role in filling the short-term gaps in international

competitiveness due to weak technology and lack of skilled manpower by availing locally

manufactured raw materials and inputs;


7. Developing and harnessing natural resources in general and minerals in particular through a

structurally transformative process and using them as inputs for industrialization is an

important milestone, which requires a careful consideration; .................................

8. Despite the indication of developmental initiatives for the utilization of mineral outputs as

raw materials in various agricultural and industrial development strategies, plans and

policies that have come into effect since 1994, the link between the country’s natural

resources and industries, environmental protection, social benefit, creating a competitive

mineral industry with capabilities including technological and human capital, have been

weak to guarantee sustainable development;

9. Good governance system, support and follow-up are not applicable as the sector contributes

much in the country development.

10. Government shouldn’t organize the relevant institutions towards realizing mineral

development and utilization as well as strengthen the sector’s network with other industries

so that the sector contributes for the country’s development; the government needn’t clearly

identify and indicate areas where it needs to give special attention and undertake in its own;

11. Given the relentless effort to the above outlined issues require in accordance with the

provisions of articles 40(3) and 89(5) of the Constitution of the Federal Democratic

Republic of Ethiopia, wherein the right to ownership of all natural resources of Ethiopia is

exclusively vested in the government and in the people of Ethiopia and that the government

is the custodian thereof, Mineral Resources Development Policy has to be been formulated

to realize the development of the sector.

Generally, in accordance with the country’s need for development and the constitutional provision of

developing the country’s natural resources, with the belief that developing the sector to expedite

industrial development, agricultural transformation and sustainable development of the service sector

through proper administration is essential; issuing a policy with appropriate implementation strategy

is required.

2. Background of the Policy, Minerals Reserve of Ethiopia and Bottlenecks in the Sector

2.1. Background of the Policy

The recent economic development the country and its scenarios show that the success of the

industrial revolution and the achievement of the nation's potential up to the 21st century digital


technology have led to the exploitation of mineral resources in various sectors. For the sake of

economic prosperity, development and national capacity building and development, countries have

taken their own minerals as well as the developing countries, and they are still taking over the

minerals. In contrast, international trends in emerging countries, like Africa, show mineral resources

as source of conflict and environmental degradation; as a result of these, they have been portraying

them as source of backwardness, and they have not played a role in the continents’ development.

Minerals are not the results of conflict, migration and environmental degradation, rather they are the

results of lack of real opportunity and capacity to manage and use the them improper way without

undue influence from the giants of the sector.

The value adding in minerals and quarrying in Ethiopia was/were growing at a rate of 25.9 percent

between 2008/9 and 2012/13. Its contribution to the Gross Domestic Product (GDP) in 2012/13 was

1.4 percent. During the fiscal year 2012/13 and 2013/14, mining sector, particularly gold, was 19

percent, out of the total export revenue which has been able to become the second largest foreign

currency earner in 2017/18, with a surge of $ 602.4 million in 2011/12. As a result of the global price

downturn and outflows in 2017/18, the contribution to national production and exports has decreased

by 0.4% and 3.6% respectively. This indicates that the sector needs special attention.

Now a day modern, meaningful mining industry in Ethiopia is seen in gold mining. While this

development is still limited to further expansion of minerals, gold mining has long been a key factor

in the country's foreign exchange earnings, job creation and revenue generation. Additionally, it’s

also the key factor for financial institutions as a storehouse, and expanding competitive industry

nationwide., however these key factors have not gone long way

However, minerals like sand, basalt, ignimbrite, mineral oils, granary and limestone are important

inputs in construction and manufacturing industries, the construction sector that is leading the growth

rate of the country's economic growth, by up to 70%, indicates that there is a gap between Ethiopia's

mining sector and the needs to be filled with foreign products.

Furthermore, Ethiopia is still heavily involving in mineral development in view of the rapid

transformation of the agro-processing industry and agro-pastoral strategies, which are believed to be

geared toward the strategic planning and attaining the middle-income country status.

The uses of traditional method of mining in Ethiopia have been prevalent for many centuries and

explored geological study of structures conducted have shown the existence of most important

minerals. Moreover, not only did it realize the importance of mining for agriculture, but also for the


implementation of the government's development plan. As a result, in the late 1940s, major

institutions, such as the Ministry of Mines and the Ethiopian Geological Survey, were founded

around 60 years ago. Ethiopia’s mineral resources has not been possible to utilize due the

inappropriate policy

The underlying causes and weaknesses in the development and development efforts of the Ethiopian

minerals are similar to those observed in any other sector of the economy: implementation strategy,

low capacity of institutions, lack of focus and sustainability as a result of regimes change. One of the

key solutions for this sector is to develop a policy that fits the industry's in long-term focus on mining

sector development. As part of its strategic focus on the second strategic plan, the investment policy

is the main role of this policy document, emphasizing the interests of the sector and focusing on the

orientation of the country and the development of mining resources.

2.2. Mineral Reserve of Ethiopia

According to some evidence, study of geology and mineral exploration in Ethiopia began in 1838.

The study shows that 1.1 million square km of land of the country, about 25 percent is Precambrian

rocks, 25% of the Mesozoic sediments, and the remaining 50% of the land is recent Cenozoic

volcanic and rocky geysers. The pre-Cambrian geological structure which is known to bear metals,

such as gold, iron, copper, and nickel, is the basis of the medieval geology composition for gas and

iron and non-metallic minerals. The most recent geological composition that covers the country is the

origin of industrial minerals, natural gas and petroleum, potash, salt, limestone, glass, dolomite,

benzene, diatomite, soda ash, pumice, opal and sulfur.

2.3. Bottlenecks in the Sector

The importance of harnessing mineral resources for social and economic transformation in Ethiopia

and the need for identifying the mineral potential of the country have been highlighted in the various

development plans in the past. Despite such recognition of the importance of mineral resources by

the different regimes of the Ethiopian government since 1950s, the country has hardly benefited from

its mineral resources. The low level of development in harnessing natural resources in general and

mineral resources in particular while the country is known to have been endowed with diverse natural

resources can be considered both the cause and sign of the underdevelopment of the nation. For the

purpose of policy intervention, identification of major problems in the sector may fall under five

interrelated categories.


The first problem of the sector in spite of the clear recognition of the potential for mineral resources

is, Ethiopia has not yet benefited from developing such mineral resources for its social and economic

development due the low level of investment in the sector in terms of volume, type, and quality. The

immediate causes of low level of investment in the sector include:

Low level and quality of data and information on the country’s mineral prospect;

Limited capacity on quality services in the process of licensing, promotion and targeting

reliable investors, and weak administrative capacity.

Low level of skilled manpower and weak technological capability;

Low demand from other sectors of the economy for specific mineral resources in the country.

Lack of continuity in the efforts and focus that target the sector’s development mainly due

to changes in institutions and the technical challenges associated with the sector;

Disregard to the fact that development in other economic sectors heavily relies on the

degree to which mineral resources are exploited, and hence structural transformation

requires the harnessing and use of mineral resources;

Lack of clear instruments;

Misperception among communities and even policy makers on the role of minerals in

development process;

Low capacity of federal and regional government mineral sector administration in

implementing laws and regulations in the sector.

3. Mineral Sector Development Policy: Vision, goals, objectives and instruments

3.1. Vision

3.2. It is to establish a strong mineral sector capability which guaranties a competitive mineral

industry in Ethiopia, serves the goals of strong industrial development, ensures equitable and

sustainable social transformation, and sustainable development over the next twenty years.

Goals

The main goals of the mineral development policy emanate from the national economic vision and

are consistent with the country’s development strategies, plans, and goals. Accordingly, the overall


the fundamental goal of the mineral sector development policy is to ensure national industrial

capability through the process of viable structural transformation. Specific goals include:

Create and strengthen linkages among sectors through value chain and critical factor inputs;

Harness mineral resources to be used as factor inputs in the manufacturing industry and

modern agriculture;

Contribute to the national economy through value addition in the mineral industry itself;

foster sustainable social transformation in the country;

Ensure desirable structural change in the economy by creating competitive mineral industry;

promote other key areas of investment in the country for foreign investors by using

investment in the mineral sector as a platform;

Create human resource, skill, and technical capabilities in the mineral sector through

promoting research and development, and trainings.

Some other additional goals of the mineral policy include study and identify minerals that can be

used for agricultural inputs, evaluate their volume of deposit and develop; identify and develop

minerals to be used in the construction, and manufacturing sector as inputs that can be sources of

significant foreign exchange earnings; generate foreign exchange earnings through export of

minerals; improve production and marketing of traditional mining; and significantly increase the

geological data coverage of the country.

3.2.1. Mineral Sector Development for Structural Transformation

The key role of mineral sector development is to foster and speed up the plan of economic growth

and structural transformation that has been in place to fulfill the country’s vision. The mineral sector

needs to be geared towards availing factor inputs and raw materials for the development of modern

manufacturing industry, agriculture, and globalized services. It is also play pivotal role in the

transformation process by generating foreign exchange earnings which is critical to finance imports

of capital and technology, and ensure macroeconomic stability. Furthermore, the sector, as a

competitive industry, will be the source of employment and value-addition.

While it is established that the mineral sector has an indispensable role in the development of other

economic sectors as the development of the mineral sector as a viable industry also heavily depends

on the transformation of other sectors. Expansion of industries that make use of mineral resources as


inputs will be transformed to viable industry that generates employment opportunities for citizens

and adds value to the national economy. Expansion of urbanization through the process of structural

transformation will thus, help to reduce conflict of interest that arises on land use between the

mineral sector and other sectors and the ensuing adverse social outcomes. Such interdependence

among sectors including the mining sector, calls for harmonization of different national policies and

their implementation.

3.2.2. Sustaining social change in mineral sector development

harnessing mineral resources for sustainable social transformation needs to take the characteristics of

mineral resources as they are non-renewable, subject to obsolescence in relevance due to changes in

technology, have volatile prices in the global market, and is mostly associated with rent rather than

value addition. Thus, the ability of the mineral sector to contribute towards sustainable societal

change depends on the national economic capability which the mineral sector can help to happen by

triggering and supporting the transformation of other social and economic sectors more than the short

term benefits in the form of temporary employment opportunities, proceeds of sales of small scale

mines, and compensations for loss of land or damages inflicted by pollution. Given such broader

goals of mineral sector development in the area of sustainable social benefit, communities can benefit

from the mineral sector development through change in livelihood and serve as indigenous base for

the effort of forming modern mineral industry. In addition, government fiscal instruments and

corporate social responsibilities can also ensure community benefits from mineral sector

development. Clarity, transparency and accountability on responsibilities of mineral developers in the

form of royalty, income and profit taxes, land lease that accrue to different administrative levels as

well as corporate responsibilities to lessens conflicts, risk and ensures healthy mineral sector

development. A trust fund that can be established by a partnership between government and mineral

developers creates financial capabilities to settle potential conflicts that arise from damages through

compensations and ensure sustainable social participation that takes the future generation into

account.

3.2.3. Creating Competitive Mineral Industry

A more sustainable way of maximizing the benefits of mineral sector development in Ethiopia is

creating a competitive mineral industry through strengthening skills, increasing technological

capabilities, establishing strong institutions, forming strong partnership and alliance with

international stakeholders, and modernizing data and information systems. Research and


development in the sector through strong partnership between government, higher learning

institutions, investors, communities, and development partners is a viable way of creating strong

capabilities of competitive mineral industry.

3.2.4. Ensuring sustainable mineral sector development

One of the sources of contentions against mineral sector development is the adverse impact on the

environment during mining processes. So, ensuring a system that guarantees minimum damage on

the environment by using the best technology and putting in place mitigation strategies consistent

with sustainable development goals are among the pillars and priorities areas of the policy.

3.3. Objectives

The policy objectives are related to detailed accounts of data and information in the mineral sector,

the input requirements, markets and investment, production and value addition to the national

economy, and foreign exchange earnings the sector can generate. Documents of medium-term

national plans will have detailed accounts of such objectives against volume, value and years of

implementations.

3.4. Instruments and Principles

Instruments of the policy tend to vary depending on specific goals and objectives. In particular,

general instruments of implementation include:

identifying the role of mineral sector in the development process of the country,

identifying and documenting the mineral potential of the country,

Planning and strategizing mineral sector development in the country,

Promoting and ensuring a mineral sector development that is consistent with goals of

sustainable development,

Putting in place fiscal and other instruments that strike a balance between attracting quality

investment in the sector and sustainable social benefits,

Cultivating and ensuring efficient mineral administration,

Creating mineral sector development corridor through provisions of infrastructure.

Forming strong and strategic partnership with the international stakeholders in the sector is one of the

instruments that can be used to develop strategically important types of minerals with significantly


large financial and complex technological requirements, but it fails to attract conventional investors

who speculate quick returns.

The major principle of the policy is the continuity of efforts and determination to implement the

goals and objectives of the policy. The basis for this principle is that the viable way to establish a

competitive modern economy led primarily by the manufacturing industry in the face of low level of

skilled labor and less advanced technology i.e. relatively cheaper raw material and factor inputs that

can be made possible through harnessing mineral resources domestically.

Consistency of the goals and objectives across sectors, engagement of stakeholders in the mineral

sector development, caring for the environment, inclusiveness of communities with clear mandate of

participation in the mineral sector development, and corporate social responsibilities are all

additional principles of the mineral policy.

3.4.1. Identifying the Role of the Mineral Sector

Failure to properly plan the specific roles of the mineral sector in the economy leads to arbitrary

interventions in the sector and eventually compromises to the benefits that the sector can generate.

Even though an important step towards reaping the proper economic and social return from mineral

sector development is to undo the negative rhetoric associated with the adverse impacts of

investments in mineral mines in developing countries, the primary role of mineral sector

development is to foster economic growth and sustainable social development through transformative

rather than extractive capabilities. Thus, properly magnify the role of the mineral sector to

stakeholders is to identify the types of minerals beyond the mere perception of synonym of minerals

with precious metals. Accordingly, minerals can fall under six general categories for such purpose of

identification:

Industrial minerals,

Construction and dimension stones

Precious minerals, base metals, and metals,

Fuel minerals,

Geothermal energy,

Gemstone minerals.


Based on such classification, it is apparent that minerals form is the basis for the inputs of all

productive sectors of the economy; and hence, there indispensable role in the economic growth

should be discounted. In particular, reversing the misconception and misclassification of industrial

and construction minerals in the country has diminished the proper role of such minerals that would

increase the benefits in the form of employment, government revenues, and environmental

management.

3.4.2. Conducting a proper account of the country’s mineral resources

A proper account and documentation of the mineral potential of the country will help to align the

development strategies of the country with its mineral resources, pre-identify the potential for inputs

of the manufacturing and agriculture sectors, identify feasible areas of specialization to build a

competitive mineral industry, establish an efficient system for quality investment in the sector.

3.4.3. Preparing Plan and Strategy for Mineral Sector Development

To maximize the benefit that accrues mineral sector development and e competitiveness in the sector,

set out plan and strategy for mineral sector development are crucial. Such plan and strategy shall

depend on the type and volume of mineral resource the country is endowed with, areas of priorities in

the social and economic sectors, and the capacity to develop its mineral resources.

According to the studies conducted in the country so far, the geological structure of the country has

the prospect of bearing precious metals, industry and construction minerals, gemstones, gas and

petroleum, and to some extent metals such as iron nevertheless such prospect for minerals needs to

be studied and documented in more detail.

The risky, complex and expensive nature of investment in the mineral sector implies that minerals

with the exception of those have established global market require domestic demand from other

sectors. These implies the harmonization of strategies and plans of the various sectors of the

economy with clear goals and objectives on their demand for inputs from the mineral sector.

Land utilization policy and regulation are likely to reduce the conflict of interest as they give legal

protection from other uses of land in areas where prospect of minerals is supported by strong

geological data.

3.4.4. Follow up

After proper identification of key goals in the mineral sector development, their phases of

implementation need to be properly planned. Goals such as generating foreign exchange earnings,


fostering goals of manufacturing industry development and agricultural transformation, ensuring

transformative mineral sector development, establishing mineral fund for the benefit of the future

generation need to be aligned on a short run, medium run and long run perspectives.

4. Key Policy Issues

As discussed in detail above, the main policy objective is to provide proper governance to the Mining

Sector so that the sector becomes input provider and catalyst for development by creating linkage

between the sector and industrial development, modernization of agriculture and the service sector.

Basically, its purpose is to provide clear policy implementation mechanisms for the creation of

linkage between other vital economic sectors and the Mining Sector in order to achieve structural

transformation and national development. it is also necessary to provide clear policy direction and

implementation mechanisms so that the sector generates the required foreign currency for the

national development, job creation and facilitate conditions where citizens benefit from mining

activities. Based on this fact, it is crucial to take into consideration the difference that minerals have

during reconnaissance/prospecting, exploration, development and mining, general investment

requirement and sub divide the minerals in accordance with their character, special nature, use, types

of prospects, and provide the necessary focus, support, follow up and when necessary government

participation. Thus, this section deals with the problem that each sub sector experiences, policy

direction and policy implementation mechanisms.

4.1 Mineral Industrial Development of Ethiopia

4.2 Precious Metals, Base Metals and Other Metallic Minerals

Although various studies show that the country has positive indications of prospect of precious

metals, base metals and other metallic minerals with the exception of gold, there are no satisfactory

information that shows, until now, the potential of other metallic mineral deposits capable of

development and mining. This indicates that there is huge task to be undertaken in the sub sector.

Most of the minerals under this sub sector require vast amount of expenditure, knowledge,

experience, scientific and technological input/support, and persistence, luck and long gestation

period-from the time of reconnaissance to development and mining/production stage. Even after the

economic feasibility of a deposit is confirmed and the project progressed into development and

mining, there are still various factors such as high technical capacity and skill, investment and


technology and other necessary conditions to advance into beneficiation, refining, smelter and

preparation of the products for manufacturing.

Therefore, the policy direction for this sub sector, in the short and medium term should be to explore

and discover deposits that can be sustainably developed and economically mined in order to generate

foreign currency, and in the long term to develop the capacity to beneficiate, refine, smelt and use the

minerals for manufacturing.

4.2.1 Policy Objective

in its short and medium term, it’s to discover the minerals in a sufficient quality and quantity,

sustainably develop and mine, and supply to the market, facilitate the local beneficiation of the

minerals whereas in the long term, it will to develop the capacity to refine, smelt and convert the

minerals into manufactured commodities.

4.2.2 Implementation Mechanisms

facilitate better ways of acquisition for high quality and quantity of geologic data,

the interpretation and upgrading of the data and efficient dissemination thereof to

users so that it can expedite the discovery of mineral deposits;

carry out continuous promotional work and provide the necessary incentive and

support so that the private sector can extensively engages in the mining

development sector;

make available a system where locally mined minerals can reach the local or the

international market without difficulty;

up on discovery and mining of the minerals, it’s to establish an entity that conduct

research to create local capacity to refine, smelt and use the minerals as input for

local fabrication/manufacturing and as required in the long term; support/encourage

the implementation of such study; and

provide the necessary support, assistance and incentive for organizations that

beneficiate minerals locally.

4.3 Industrial Minerals

The role of minerals for local industrialization is immense. In particular, it is important to

enhance and ensure the competitiveness of local industries by utilizing industrial minerals as


input for local manufacturing. Alongside enabling the utilization of industrial minerals as input

for local industries, value addition of the minerals by undertaking beneficiation of minerals

required as raw material for international market supports the economy immensely.

It is also possible to strengthen sectoral linkage by locally producing various types of

chemicals, implements, utensils, fertilizer, and various commodities utilizing industrial

minerals as input. Therefore, the appropriate policy direction shall be provided to special focus

and facilitate the use of industrial minerals as industrial input and conversion into various types

of commodities.

4.3.24.3.1 Main Challenges/problems

Satisfactory studies on industrial minerals are not availability;

Adequate number of industries that use industrial minerals as input not

availability; those available are even dependent on imported input;

knowledge and awareness on the possible contribution of industrial minerals for

the economic and social development of the country are insufficient.

4.3.2. Policy Objective for Industrial Minerals

The policy objective for industrial minerals is to enable the persistent exploration and

development and mining of industrial minerals to supply competitive price and widely use

the minerals for local manufacturing.

4.3.3. Implementation Mechanisms

prepare a report by compiling studies conducted so far on industrial minerals by

conducting an inventory of industrial minerals that can be used as input for local

manufacturing;

Conduct continuous study to enhance the knowledge and data base of the

industrial minerals of the country as well as improve and build up the database;

Establish government entity that study and classify industrial minerals that can

be used as input for local manufacturing, identify where such minerals are found,

identify the type and size of deposit, determine the type of manufacturing the

mineral can be used for, research the required process to convert the minerals into

commodity, the required amount of investment, market condition and the way in


which the activity can be started and gradually expanded and promote, encourage

and support local investors to engaged in such industrial activity;

promote and provide the necessary support for the expansion/development of

local industries that use locally available industrial minerals as input;

Provide a system whereby government agencies that are engaged in the

economic, industrial and agricultural sector and the private sector work in

harmony and collaboration to implement the mechanism by which industrial

minerals can be beneficiated and used as input for local manufacturing.

4.4 Minerals as/for Agricultural Input

Modernizing the agricultural economic sector is another critical part of the effort to bring

structural transformation of Ethiopia. The possible ways of the realization of modernization of

agriculture include building production capacity in the sector, developing water sector and

minimizing rain fed agriculture, increasing the productivity of labor and, augmenting land use

for modern, sustainable and environmental friendly fertilizers, weed and pesticides. Out of

these means of modernizing agriculture, direct or indirect role of minerals is huge. In the

process of harnessing water resource for agricultural purposes; the inputs to construct irrigation

system; metallic inputs that are required to manufacture modern agricultural machineries,

agricultural inputs that are used for enhancing the productivity of soil are all, indeed, mineral

supplies. Modernization of agriculture as part and parcel of the structural transformation

expands the demand for mining and use of most of the needed minerals will be created. As a

result, in the short and medium term it will be possible to achieve the objective of substituting

agricultural inputs by beneficiation and producing vital agricultural inputs required for

development. This in turn saves the country a huge amount of foreign currency which it spends

for such purpose.

4.4.1 Main Challenges/problems

Less attention was given for reconnaissance/prospecting, exploration and

development of minerals that can be used as agricultural input;

Insufficient confirmation of minerals exists for agricultural input

Insufficient private investment focused on minerals that can be used as agricultural

input,


In-adequate preparation to convert minerals into fertilizers or other form of

agricultural inputs however there are minerals use as agricultural inputs.

4.4.2 Policy Objectives

To determine potentials of minerals that can be used as agricultural input and

advance them to the stage where they can be developed.

To Create a capacity to manufacture agricultural inputs using locally available

agricultural input minerals and supply to local and international market.

4.4.3 Implementing Mechanisms

The government shall allocate budget and work with determined focus to enable

existing potentials of agricultural input minerals to progress into development and

mining stage and facilitate the discovery of new deposits;

Provide support and special incentive to investors that work to discover agricultural

input minerals and to mine such minerals economically;

Provide special incentive and support to investors engage in manufacturing

agricultural inputs using locally available agricultural input minerals;

Alongside the assistance and support that it provides to private investors, the

government will undertake the required capacity building to fill the gap that it

identifies;

The government on its own or jointly with the private sector will take measures to

manufacture agricultural inputs using locally available agricultural input minerals.

4.5 Construction and Dimension Stones

It is known that our country is endowed with vast amount of construction minerals. From time

immemorial, construction and dimension stones are used for various purposes. They are also

used as input to the construction sector, the industry currently leading the economic activity of

the Country. Although the construction sector is known for using huge amount of locally

produced raw construction materials; it is also known for its use of imported finishing

construction materials with medium and high value addition. The fact that the cost of imported

construction inputs is highest compared to local construction materials shows that the country


has a huge potential to bring sectoral linkage by adding value on construction and industrial

minerals.

The proper and sustainable use of local construction minerals contributes to the effort of

attaining self-sufficiency by deploying local resources for local economic and social

development. Furthermore, it can give the country the option to allocate the foreign currency

that it spends to import the construction minerals outputs for other development purposes. It is

necessary to recognize materials such as sand, gravel, various types of stones and similar

construction minerals which are not even widely considered as minerals, as important

resources. Introduce uniform system of good governance of the sector for utilization of the

resources which in turn helps to accelerate the development of the sector including the

realization of good land use management, appropriate environmental protection and reduction

of conflicts. The revenue the government earns form the sector could also help to ensure the

benefit of the community.

4.5.1 Main Challenges/problems

lack of awareness to the extent that most of the construction materials are not

recognized as minerals and as a result the sub-sector is provided with minimal

focus;

Lack of local capacity to mine, process and supply construction minerals in

sufficient quality and quantity for the construction sector;

Lack of capacity to properly mine, process and supply dimension stones to the

market in sufficient quantity and quality.

4.5.2 Policy Objective

To aid the sustainable mining and processing of construction minerals/materials

and dimension stones to the required quantity and quality and utilize for economic

and social development of the country.

To enable the mining and processing of sufficient quality and quantity of dimension

stones and supply to foreign market alongside the local utilization.

4.5.3 Implementing Mechanisms


Provide the necessary support and incentive to encourage private investors to

engage in construction and dimension stone/minerals mining and processing

activity;

Provide the necessary support and incentive to encourage study and research to

improve and develop and implement new methods of use of construction

minerals/materials.

4.74.6 Gem Stones

There are potentials of gem stones in various parts of Ethiopia. Gem stones can fetch better and

high value rather than export of rough stones if they are properly cut and polished to the

acceptable standard and converted into jewelry. y they could also generate job opportunity for

large number of people. Based on these facts, it is possible to link the skill in this sub sector

with the weekend cultural tradition of gold and silver jewelry making and revive the cultural

heritage of the country and pass the cultural heritage to the future generation, and it’s also

possible to generate handsome financial benefit to the country.

As our country also has enormous potential of tourism industry capable of expansion; it is

required to work hard towards the strengthening of jewelry making and traditional handcrafts

and create linkage between the tourism industry and local jewelry market so that the

collaboration could generate huge income.


The sub-sector is scattered and provided inadequate attention;

Inadequate training and human resource development in the sub-sector, specially

no training facility that provides training to cut and polish the stones, if at all

available, not significant;

The decline in traditional jewelry making from gold and silver;

Damage to the stones due to lack of good extraction methods;

4.7.24.6.2 Policy Objective


To enhance the production of gem stones by expanding exploration and mining of

the stones; increase the contribution of the sub-sector for local development by

developing jewelry making skill and adding value to the stones.

4.7.34.6.3 Implementing Mechanisms

Provide support and incentive for the reconnaissance, exploration and mining of

gem stones/minerals.

Provide special attention to the sub-sector and expand local value addition;

Increase quality and quantity of export of rough gemstones alongside the local

value addition.

Establish an entity that focuses and works for the development of the sub-sector;

Establish training center that trains the skills of cutting, polishing and jewelry

making by using gem stones;

Provide the necessary support and incentive for local handcrafts and organization

that make jewelries in combination of gold or/and silver.

4.84.7 Artisanal Mining

Large number of artisanal miners produce considerable amount of gold at various parts of our

country. This product could be considered as one source of foreign currency for the country’s

development effort however large amount of gold produced by artisanal miners is smuggled

out of the country.

With this trade, it also seems that organized and not strictly law-abiding groups are emerging.

In some occasions, there are situations where artisanal miners trespass into the areas of legally

licensed activities and take ores prepared for processing. The impact that artisanal mining

causes on the environment is also considerable. On the other hand, if the sub-sector is well

managed, provided with the necessary support, follow-up and supervision, in addition to the

foreign currency it generates, it can create jobs for large number of people. There is also ample

chance that such activities grow into small and medium size mining operations.


Numerous people are engaged in gold smuggling;


Undue competition and encroachment to legally licensed mining or exploration

operation areas;

deforestation, digs large area of land and causes severe environmental impact on

the locality;

use mercury to separate the gold from other materials is aggravating the damage

that may be caused to humans, animals and the environment.

As a result of backward mining methods, the gold that is wasted is much more than the recovered.


Organize and provide appropriate training and support to artisanal miners so that they carry

out their activities in manners that support sustainable development and the activities to

gradually convert/grow into small and medium scale mining operations/organizations.


Provide support to strengthen regional mining governance entities;

Establish extension unit that provides support, organize, provide training and

follow up and supervise the activities of people engaged in artisanal mining;

Create a system that organizes and coordinates federal and regional mining

governance bodies to work closely with the artisanal miner’s extension unit to

resolve the problems that exist in the artisanal mining sub-sector and help the

sub-sector to contribute for sustainable development;

facilitate, encourage and support artisanal mining activities to grow/transform

into small and/or medium scale mining operations;

Undertake strategic environmental and social impact study for areas where

artisanal mining activity takes place and on that basis prepare environmental and

social impact management plan;

Establish an entity that specifically works on strategic environmental and social

impact study for areas where artisanal mining activity takes place, implement the

environmental and social impact management plan, execute, follow up, supervise,


and study damages that happened at earlier times and treat and reclaim the

damaged area;

Require artisanal mines to contribute small amount from their income for

alleviation of environmental and social impact and reclamation and for

establishing entities that provide service for sustainable social development;

Establish a system that can train adequate number of extension workers;

Implement a system that enables efficient recovery of minerals mined by artisanal

miners;

Establish effective and efficient system that ensures minerals mined by artisanal

mines reach the market;

By establishing effective control and better marketing system; stop the

smuggling of mineral produced by artisanal miners; and

By supporting the creation of alternative economic activities in the areas where

artisanal mining activity takes place, facilitate the possibility that people engaged

in artisanal mining will continue working once the minerals are exhausted or

switch to new jobs.

4.94.8 Environmental Protection, Social Issues and Sustainable Development

4.9.14.8.1 Environmental Protection

4.9.1.14.8.1.1 Policy Objective

The mineral resource development in Ethiopian shall be conducted in accordance with the principles

of sustainable development and with appropriate environmental protection principles and standards.

4.9.1.34.8.1.2 Implementing Mechanisms

All mining activities starting from exploration, development, mining and

closure shall pass through appropriate and standard environmental and

social impact study process;

All environmental and social impact studies shall have environmental and

social management plan that shall enable as outlined in the environmental

and social impact study to avoid, mitigate or reclaim and follow up and


mitigate or avoid environmental damage that may occur as a result of the

mining activity at a later time;

strong and well provided entity that will evaluate, approve, follow up the

implementation of environmental and social management plans and execute

the same shall be organized;

system will be put in place that provide a sustained training for

professionals that will have sufficient knowledge and skill to prepare,

evaluate and execute environmental and social management plan; and

System that supports and encourages research and investigation to reduce,

convert and/or recycle waste generated from the mining activity will be

established.

4.9.24.8.2 Mineral Development for Sustainable Social Development


The main policy objective is to enable mineral development operations to create harmonious relation

between employees and the local community and enable s sustained interrelation with local growth

and development programs and become part and parcel of the community and ensure shared benefit.


A system will be provided where miners will contribute fund that

used for local development in the areas where the mining activity

takes place and that enables proper use of the fund for local

development;

The government provide special support to localities where mining

takes place by ensuring transparency of the revenue it collects as

royalty, income and dividend tax and land rentals;

continuous and sustained consultation system will be provided to

enable a harmonious relation between miners and local community

where mining takes place;

Measures will be taken to facilitate the establishment of

manufacturing activities that use the minerals produced as input


where possible or alternative measures will be taken to facilitate the

creation and expansion of other industrial activities that can

sustainably run when the mineral is exhausted in the locality where

the mining activity takes place by using part of the government

revenue generated from the mining activity;

By deducting some part of the revenue from mining sector a

sustainable national reserve fund will be established, for the use of

the future generation.

4.104.9 Mining Sector Investment and Market

4.10.14.9.1 Mining Sector Investment

The other area that requires serious attention is investment. Although it takes the unique features of

the mining sector into consideration, Ethiopian mining sector investment policy emanates from the

general mineral development policy, and it is aligned with the general investment policy of the

country. As the Ethiopian Mining Policy is geared towards accelerating the structural transformation

of the country, the investment in the sector is in harmony with the main objective.

Mineral resources have a critical role to achieve industrialization based structural transformation of

the country, particularly in speeding up the productive industrial sector and modernization of

agriculture. Depending on the set priority for the development of the nation, minerals that are proved

to exist and required for the development effort can be developed and mined by local and/or overseas

investors, the state or joint investment of the state and the private sector. The key role of minerals is

also determined by their importance for the productive industry development, modernization of

agriculture, the creation of general linkage between various sectors, and their contribution to generate

foreign currency.

The investment in the sector is determined by the interest of foreign companies, capacity and interest

of local investors and the capacity of the state. The capacity of the state and local investors is

expressed in terms of finance, man power and technology. In this regard, it is absolutely necessary to

encourage foreign companies to engage in areas where the mining activity requires extensive

technology, experience and financial capacity and for minerals that attract the interest of overseas

companies. Those minerals important for national development and capable of being developed and

mined by local capacity can be mined through the local private sector or jointly via the state and the

local private sector. Those minerals that are very crucial and have no alternative for economic


development and the intended structural transformation of the nation and require extensive financial

and technological capacity but do not attract international investment should be developed and mined

by the state or joint effort of the state and the private sector or it may be considered to develop these

mineral resources with the help of international development partners of the country.


To implement systems and methods that makes Ethiopia globally competitive to attract mining sector

investment.


Identify and amend laws, regulations, directives and practices that are

bottlenecks to investment;

To provide appropriate support and incentive to local or overseas investors to

aggressively engage/invest in the mineral development sector;

Create an efficient licensing system, particularly implement first come first

serve principle; implement a system that may be used where there is a sufficient

reason and in a very limited circumstances where licenses may be issued by

bidding or any other form of competitive process.

Establish a system where government agencies that may provide services and

infrastructures related to the mining sector work in a coordinated manner;

Provide a system that enables professionals serving in mining administration,

follow up, supervision and related services, have the necessary numbers and

professional diversity and that they will receive the necessary training,

experience and a system that will enable them to stay in their work with their

own accord;

Facilitate opportunities for Ethiopian investors to engage in the mining sector

investment, directly or jointly with overseas investors;

Adjust banking systems, foreign exchange laws, regulations and directives in a

way that it speeds up the mining development sector;


Based on the principle of benefit sharing, put into practice an internationally

competitive, stable and transparent tax system that can attract mining

investment;

4.10.24.9.2 Minerals Market

For a country determined to achieve structural transformation, the major market for minerals are the

demands that are created by industrial development and modernization of agriculture. As these

demands expand in long term; the short term demands for mineral commodities come from overseas

market and parallel to this effort it is also important to develop and mine minerals that are required

for local development. Alongside the traditional foreign market and jewelry making, it may be also

possible to create a better market around gold, a mineral that Ethiopia mines traditionally or with

modern mining methods for ages, if the National Bank and other financial institutions promote and

provide a better recognition to the mineral as storage of value.


The main objective of the policy is to create a local market that properly uses the mineral resources

of the country that will augment the economic transition.


Help the establishment of modern advertising system;

Create a network between clients and the international information

system;

foster the cooperation of industries that use minerals and mineral

products and mining sector investors create a reliable and sustainable

supply of mineral inputs;

Support the sector by research and study to ensure the quality of

minerals and mineral products and modernize mineral market.

4.114.10 Creation of Competitiveness in Mining Sector

The creation of competitiveness in mining sector is a cumulative outcome of the effective

implementation of detailed policy objectives. Therefore, competitiveness should not be considered on

its own, separately.



To enable the mining development sector to be strong, harmonized with the international mining

development activity, competitive that attracts sufficient investment and contribute for the

sustainable development of the nation.


System shall be established to train appropriate and qualified professionals and

technicians required for the research and study of the geology, mineral

development and governance requirement of the country;

Higher educational institutions shall be provided with the necessary support and

encouragement so that they will engage and expand range of research and study

in mineral resources development sub-sectors, and geological investigations;

System of cooperation and coordination shall be established to facilitate the use

of various services available within the government, the mining industry and

higher education institutions to enable the undertaking of joint research and

study works to augment the expansion of technology transfer and human

resources development;

Research institutions that conduct research and study based on the need of

customers and stakeholders that support mineral exploration, mine

development, mining, processing, marketing and manufacturing and

environmental protection shall be established;

Necessary support and incentives shall be provided to help the transfer and use

of research outputs by various industries;

System shall be established to provide a uniform and up to standard training to

mine workers and technicians;

Effort shall be made to expand necessary infrastructures critical to the mining

sector development such as transport, water supply, power supply and

communications facility;

Cooperative arrangement will be organized based on common interest of

African and other countries focused on minerals and mining activities;


System that enables the country to cooperate and coordinate with other African

countries for the efficient use of capacity, the strengthening of cross border and

regional integration, the expansion of mineral value addition, beneficiation,

smelting and fabrication will be established;

System that enables the expansion and implementation of knowledge and

methods of mining sector science and technology will be established.

4.124.11 Mining Law and Governance

Mining development laws promulgated, so far, has shown clear advancement from time to time in

capturing modern ideas of the sector; however, they are mainly focused on the general and

comprehensive nature of the mining sector rather than providing particular attention to special sub-

sectors of minerals. It is clear that minerals have diverse category and features, and they can be used

as inputs to diverse economic sectors/activities; and furthermore, their investment and mining

methods and styles are also different. On the other hand, as the laws were not focused to the varied

nature of mineral sub-sectors; they failed to give the necessary attention, support and incentives

required to each sub-sector.

In addition to the fact that the laws in force did not provide sufficient attention to various mineral in

sub-sectors, the institutions were mandated to implement the laws are not as adequately prepared and

suffer from inadequate manpower. As a result, the gap observed in implementing the laws effectively

and efficiently by the institutions shows the difficulty of receiving and serving the investment that

may be available for the development of the sector.

Although it is the federal government that has the mandate to promulgate and direct the

implementation of the law and administer natural resources, there is no enough harmonization,

cooperation and support between the federal government and regional governments. Thus, such lack

of synchronization definitely plays a negative role in the development of mineral resources.


As the laws did not give sufficient attention to mineral sub sectors, minerals that

are crucial to national development lacked the necessary focus and direction;

Lack of adequate and efficient institutional preparation to implement the laws;

Lack of competent and experienced human resource in sufficient quality and

quantity for the sustained implementation of the laws;


Lack of adequate and appropriate training for sufficient number of employees

required for the job and lack of retaining qualified and experienced professionals

on their job.

4.12.24.11.2 Policy Objectives

Preparing and implementing mining governance law and institutional set up capable of executing the

mining policy, and establishing and implementing governance system compatible with national

standard for follow-up and support.

4.12.34.11.3 Implementing Mechanisms - as Regards Laws

Investigate current laws and practices and provide necessary revisions; establish

new systems and provide new laws as required;

Primarily mining laws shall center on the leading role of the private sector in

mining investment, and ensure predictability and continuity, provide adequate

protection and security to investors engaged in the sector, enable transition of

mining license to the next stage or level of operation without difficulty, enable

and ensure the right of granting mining operation rights as security and/or transfer

mining operation rights to others/third party, and provide for detailed and

necessary assurance and guarantee the provision of efficient services and the

necessary support and incentives.

The laws shall provide detailed provisions as regards to the role of the private

sector and the government in mineral development activities;

The laws shall provide special attention for exploration, development and mining

of industrial, agricultural, construction and jewelry input minerals and establish

the necessary support and incentive system to enable such minerals to become

input for industrial development;

The necessary attention and incentive shall be provided to accelerate and expand

the exploration, development and mining of precious metals, base metals and

other metallic minerals;


The necessary system shall be established to provide the sector with good mining

industry governance by making the mining industry transparent, accountable and

open for public discussion and dialogue;

A system shall be established to enable fair distribution of income between the

Federal Government and Regional Governments where the mining operation

takes place.

4.12.44.11.4 Implementing Mechanisms – as Regards Governance and Research

Institutions

Thoroughly investigate the mining sector governance and reorganize so that it

will be able to effectively administer, issue license, promote, support, follow-up,

supervise, control and take the necessary actions;

Material requirements necessary to direct, administer, promote, follow up,

supervise and control the sector shall be provided as much as possible;

A modern and national mineral cadaster system that enables the availability of

comprehensive information shall be established;

A system where Federal Government Agencies, Regional Governments and

related entities continuously consult, cooperate and support each other in order to

enable and accelerate sustainable mining sector development shall be established;

A system shall be established to listen the views, opinions and interest of

stakeholders in order to advance transparency, fairness and justice within the

mining sector governance;

a consultative council assembled from stakeholders that provides advice on

strategic directions, suggestions, and recommendations on resolving problems in

relation with the mining sector development shall be established;

The Geological Survey shall be converted into modern, strong and well-organized

entity that will collect geosciences data, continually update, organize and supply

such information and knowledge to users and be the primary source of knowledge

and information to the mining sector;


4.12.54.11.5 Implementing Mechanisms – as Regards to Human Resource

Development and Administration

A continuous human resource development work shall be carried out that enables

the governance of the sector with capacity, responsibility and accountability;

An appropriate incentive system shall be provided to maintain experienced

professionals working in the sector;

Short and long-term training programs shall be introduced in the school

curriculum to train skilled manpower to enable the use of various minerals for

(industry, agriculture, construction, jewelry, precious metals, base metals, and

other metallic minerals) fabrication, develop technical and technological skills to

use the minerals for various applications, and conduct research, study,

development and implement.

4.134.12 Crosscutting Issues

4.13.14.12.1 Gender and Woman’s Right


To ensure the rights and equality of women is respected in the mining

industry, and to enable mining activities to be responsive for women’s

needs.


Equal wage for equal work shall be implemented;

Women shall have equal opportunity of work, training and

participation in the mining selector;

By providing the necessary attention to the natural, physical and

health condition of women, mining operation areas shall be

responsive to the needs of women;

Consultations and decisions related to mineral development will take

gender issues into consideration;


A system will be provided to protect women from gender-based

violence; in particular sexual harassment and system to take actions

where gender-based violence is committed.

4.13.24.12.2 Labor Issues

System shall be provided to protect the living condition, health and safety of workers in

accordance with international good practice.

4.13.34.12.3 Child Protection

System shall be provided to protect children from labor exploitation and negative effects of

mining.

4.13.44.12.4 Right of Disabled Persons

Mining operation sights shall be provided with facilities taking into consideration physically

disabled persons.

4.13.54.12.5 Communicable Disease and Epidemics

Comprehensive system shall be provided to protect and eradicate problems that may be caused by

HIV AIDS and any other epidemics and health problems from areas where mining operations takes

place.

4. Policy Implementation Framework

It is a pre-requisite for the effective implementation of this policy that the implementation framework

is outlined beforehand. This helps to coordinate, integrate and govern the respective stakeholders in

this policy and monitor the implementation of the policy. In addition, it helps to mobilize any types

of support and assistance for the implementation of the policy and to build adequate capacity to

provide the required support in a timely manner. The implementation framework of this policy

outlines the scope of the policy, the institutional framework of the policy and the various

stakeholders of the policy and their respective roles.

5. Scope

This policy shall apply to mineral development and related activities.

“Related activities” include all activities and works related to mining and the structural

transformation that this policy is intended to achieve towards bringing sustainable


economic development through the use of minerals as raw materials for industrialization,

agriculture, construction/building, jewelry and other purposes and to cultivate their

interrelatedness and complementarily as well as generating foreign currency.

6. Institutional Framework

The Federal Democratic Republic of Ethiopia shall have the governing power in the implementation

of this policy and under the Federal Government the responsible organ for implementing, monitoring

and administering this policy shall be the Ministry of Mines and Petroleum (the Ministry) provided

that the nomenclature might vary from time to time.

7. Stakeholders and their roles

7.1. Various stakeholders shall be involved in the implementation of this policy. The term

“stakeholders” include:

7.1.1. Notwithstanding the governing role of the Ministry, other government agencies

such as in charge of Environment, Forest and Climate Change, Finance, Trade

and Industry, Agriculture, Innovation and Technology and other relevant

government organs;

7.1.2. Companies/organizations engaged in a mining activity,

7.1.3. The government of the regional state where the mining activity takes place and

state government organs directly related to the matter;

7.1.4. Community members of the area wherein the mining activity takes place;

7.1.5. Non-governmental organizations working on natural resources, mineral

development, environmental issues and social affairs; in particular, professional

associations and civil society organizations and civic associations and other

similar establishments; and

7.1.6. Concerned members of the community, particularly those with the knowhow and

expertise and working on the sector.

7.2. Stakeholders shall fully participate in all the necessary tasks of realizing the

implementation of this policy. Specifically:

7.2.1. participating in conferences that provide consultations and strategic guidance on

researches towards creating and strengthening the linkage between the mining


sector and industry, agriculture, construction and jewelry sectors and to promote

investment in the sector, regarding the potential of the sector to generate foreign

currency and the development of minerals and value additions;

7.2.2. conducting research and study jointly and independently on the required linkage

between the mining sector and other sectors such as manufacturing, agriculture,

construction and jewelry sectors as well as other service sectors, supporting,

providing assistance and facilitating circumstances towards mineral development

and value additions;

7.2.3. Participating actively in the efforts of realizing good governance in mineral

resource administration through promoting transparency, accountability and

public dialogue.

8. Monitoring, Evaluation and Policy Review

8.1. The Ministry shall be principally responsible to implement this policy and monitor and

evaluate the implementation thereof. The Ministry shall also be responsible for

proposing modifications based on its evaluation.

8.2. The ministry shall conduct annual evaluation and submit report on the implementation

of the policy. The report shall cover the policy implementation, challenges faced and

measures that need to be taken for a better performance, recommendations for

amendment and review and other important issues.

8.3. Modifications/revisions have to pass through a stakeholder consultation before they

become recommendations.

8.4. Revisions and modifications shall be clearly identified and submitted to the Council of

Ministers with a cover letter explaining their relevance.

8.5. If the Council of Ministers found the recommendations acceptable, it will approve such

and send back to the ministry for implementation and monitoring.


9. Dissemination of the Policy

This Policy shall be publicized in any of the public media outlets and be known to the public.

In addition, it will be permanently posted on the ministry’s website.

10. Effective Date

Save for periodic revisions and amendments, this policy shall have a life time of twenty (20)

years (until 2040) from the date of its effective date.

11. Definitions

In this policy,

11.1. “Mineral” means any mineral resource of economic value formed through a

geological process occurring naturally on or within the earth or water bodies.

11.2. “Mining Operation” means in general any of mineral reconnaissance, prospecting,

exploration, development, mining activity and could also mean any one of the

activity.

11.3. “Mine development” means a work undertaken to access the minerals deposit, open

up and extract the minerals, process transport the minerals and construction of other

facilities and infrastructure directly or indirectly required to service the mining

activity.

11.4. “Mineral development” or “Mining sector development” means a general expression

related with the contribution of the minerals/mining sector to advancement, growth

and expansion of the economy.

11.5. “Industrial Mineral” means any mineral used as industrial input such as kaolin,

bentonite, feldspar, potash, silica sand and other related non-metallic minerals.

11.6. “Agricultural input mineral” means industrial minerals that can be put directly or

through the process of manufacturing to serve as inputs for agriculture such as

potash, phosphate and lime stone.

11.7. “Construction mineral and dimension stone” means stones that are used for

construction works including marble, granite, basalt and sand.

11.8. “precious stone/mineral” means minerals such as diamond, pearl, aquamarine, ruby,

emerald, sapphire, garnet, opal and olivine that can be used to make jewelries.


11.9. “Precious Stone” means minerals such as gold, platinum and related minerals and

silver.

11.10. “Ministry” means Ministry of Mines and Petroleum.

11.11. “Environmental and Social Impact Assessment” means a report produced after the

evaluation of the positive as well as negative environmental and social impacts of a

project/work.

11.12. “Environmental and Social Impact Management Plan” means a plan that clearly

outlines the impacts that are outlined in an environmental and social impact

assessment report and provide measures to alleviate, rectify, rehabilitate, treat and

monitor such in order to avoid the impacts or reduce to an acceptable extent thereby

providing clear directions for its implementation.