Draft Laws

Amended /Draft/ Proclamation to regulate transaction of minerals

Proclamation No……/2019
A Proclamation to Regulate Transaction of Minerals


WHEREAS, the constitution of the Federal Democratic Republic of Ethiopia, provides that the right to ownership of all-natural resources of Ethiopia is exclusively vested in the government and its people. Thus, it becomes necessary to regulate the transaction of mineral resources after production;
WHEREAS, it has become necessary to put in place a regulatory framework that promote, regulate and control the transaction of all mineral resources;
WHEREAS, it has become necessary to modernize the mineral transaction scheme so as to create a proper structure that enhances the contribution of the sector to the national economy;
WHEREAS, it has become crucial to determine the roles, powers and duties of all stakeholders that participate in mineral transaction;
NOW, THERFORE, in accordance with Article 55 (1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

PART ONE
GENERAL
1. Short Title
This proclamation may be cited as the “Transaction of Minerals Proclamation No. …./2019.”
2. Definition
In this Proclamation, unless the context otherwise requires:
1. “Mineral” means any mineral substance of economic value produced, whether in solid, liquid or gaseous form, occurring naturally on or within the earth or in or under water and which is formed by or subjected to geological process and includes any mineral occurring in residue stockpiles or in residue deposits but excludes:
a) Any other water and Geothermal water used for industrial, bathing, recreational and medical purpose other than water used for the extraction of any mineral such as brine;
b) Products of Natural gas and Petroleum as defined in the relevant petroleum law;
c) Top soil and products of oil shale;
2. “Precious Mineral” means precious metallic mineral such as platinum, gold, silver or precious stones such as diamond, ruby, emerald, sapphires products and includes other minerals as the ministry may, by directives, so designate;
3. “Semi-Precious Mineral” means mineral used for jewelers such as opal, rhodolite, olivine, jadite, lazurite and includes any other mineral the ministry may, by directives designate as such, excluding precious minerals;
4. “Metallic Mineral” means any produced metallic mineral such as iron, copper, zinc, lid, chromites, nickel, tantalum and manganese and includes any other mineral the ministry may, by directives, designate as such, excluding precious and semi-precious minerals;
5. “Construction Mineral” means any mineral directly or indirectly used as an input for construction purposes such as marble, granite, limestone, basalt, sand, aggregate, ignimbrite, and clay and includes any other nonmetallic minerals the ministry may designated as such by directives;
6. “Industrial Mineral” means any mineral directly or indirectly used as industrial input such as kaolin, bentonite, quartz, coal, limestone, potash, gypsum, pumice, clay, graphite and includes any other minerals the ministry may, by directives, designate as such, excluding metallic, precious or semi-precious minerals;
7. “Transaction” means any activity related to the purchase, custody, transport, crafting, refining, smelting, sale locally or export of minerals for commercial purposes;
8. “Suppliers” means a buyer of locally produced minerals from legal miners and sale gold and silver to national bank or other legally authorized entity; precious or semi-precious minerals to exporters or holders of lapidary license and the remaining minerals to the users;
9. “Crafting” means the activity of molding precious, semi-precious or metallic minerals in their final shape by means of smithery, lapidary or by combining the output from the two;
10. “Smithering” means undertaking smelting, molding and other similar activities of precious, semi-precious or metallic minerals to finished products for consumption by end users;
11. “Lapidary” means the cutting, molding, polishing and any other similar activities carried out on precious and semi-precious stone to shape them to be ready for use;
12. “Combining” means using processed or semi processed ornament to produce a combined ornament that has final shape by means of smithery or lapidary;
13. “Smelting” means the process of giving final shape to gold, silver or metallic minerals through smelting and make them ready for sale;
14. “Refining” means the process of taking out of impurities or separation of different associated metals from any metallic minerals to increase their carat amount or purity;
15. “License” means a trade license issued pursuant to the provisions of this proclamation that gives a mineral transaction right;
16. “Certificate of competence’’ means a certificate granted to approve the capability of an applicant to get a trade license to engage in minerals transaction;
17. “Processing” means washing, smelting, smithering, crushing, cutting, decorating minerals by using different methods and undertaking other related activities to give their final shape;
18. “Foreign Investors” means foreign national or an enterprise owned by foreign nationals, having invested foreign capital in Ethiopia, and includes an Ethiopian permanently residing abroad preferring treatment as a foreign investor;
19. “Local Investors” means an Ethiopian having made an investment, or government and public enterprises as well as a foreign national of Ethiopian origin and preferring treatment as a domestic investor;
20. “Exporting” means the activity of buying gold and silver which are in their final shape, other mineral in their processed or semi processed form, from miners, holder of crafting or suppliers license for the purpose of exporting;
21. “Transfer” means sale, encumbrance, inheritance, assignment or any other means of transferring of the rights and obligations to another party;
22. “By-products” means debris, discard, tailings, slimes, slurry, waste, ash or any other products derived from processing minerals including those that have value or no value, or that causes or may not cause harm to the environment;
23. “Personal use” means the custody of gold and precious metallic minerals, precious ornament or semi-precious mineral by individual for non-commercial purpose which is in their final shape ready for ornamental purpose;
24. “License issuing Authority” means as the case may be the Ministry of Trade and Industry or any relevant regional authority.
25. ’’certificate of competence issuing authority’’ means as the case may be the Ministry or any regional authority responsible for managing the mineral sector
26. “Ministry” means the Ministry of Mines and Petroleum;
27. “State” means any regional state specified under article 47 (1) of the constitution of the Federal Democratic Republic of Ethiopia, and includes the Addis Ababa and Dire Dawa city administrations;
28. “Bank” means the National Bank of Ethiopia;
29. “Duration of a License or certificate of competence” means a duration of one year from the issuance of a license or certificate of competence, in the Ethiopian Calendar;
30. “Budget Year” means from the period of July 08 up to July 07, according to the Ethiopian calendar;
31. “Person” means any natural or juridical person;
32. “Final Shape” means to add value to minerals to produce jewelry and ornaments to get final aesthetic value.
33. Any expression in the masculine gender shall also include the feminine gender.
3. Scope of Application
1. This proclamation shall apply to govern all transactions of minerals produced from all mining operations conducted within the Federal Democratic Republic of Ethiopia.
2. Notwithstanding sub-article 1 of this Article, a holder of a mining license, subject to the provisions of the Mining Operations Proclamation, shall not be required to obtain certificate of competence or any other license specified under this proclamation in order to sale locally or export the minerals produced.
4. Objectives
The objectives of this proclamation are to:
1. Create an effective transaction scheme for minerals to ensure meaningful contribution to socio-economic development.
2. Organize and update the mineral transaction scheme to prevent the transaction from illegal influences.
3. Make investors, who are engaged in minerals transactions, perform their rights and obligations as per the rules and regulations.
4. Ensure that the mineral transaction scheme is implemented taking due consideration of the environmental and social protection principles in a sustainable manner.

PART TWO
LICENSE OR CERIFICATE OF COMPETENCE
5. Requirement of License or Certificate of Competence
1/Any person may carry out transactions of minerals upon obtaining license pursuant to this proclamation and other relevant laws. and
2/ Any person requested for trade license of mineral transaction shall present certificate of competence granted by the certificate of competence issuing. Authority.

CHAPTER ONE
ISSUANCE OF LICENSE
6. Types of Licenses
The following licenses may be issued under this proclamation and other relevant laws:
1. Mineral supplier license;
2. Mineral crafting license;
3. Mineral refining license;
4. Mineral smelting license
5. Mineral Trade license.
6. Mineral Exporting license.
7. Issuance of Mineral Supplier License
1. A mineral supplier license may be issued in the following conditions upon identifying the type of mineral;
a/ When it is a construction or industrial mineral materials, the supplier license grants the holder of the license the right to purchase mineral from legal miners, hold for sale, transport and sale the mineral locally to consumer or to the holders of export license.
b/ When it is precious or semi-precious minerals other than gold or silver, the supplier license grants the holder of the license the right to purchase mineral from legal miners, hold for sale, transport or sale locally to the holder of export license or to the holders of crafting license within 6o days unless he has a convincing reason.
c/ When it is gold or silver, the supplier license grants the holders of the license the right to purchase mineral from legal miners, hold for sale, transport or sale locally to the bank or to an authorized entity within 30 days.
d/ When it is a mineral other than those mentioned under sub articles a, b or c, of this Article, the supplier license grants the holder of the license the right to purchase mineral from legal miners, hold for sale, transport and sale locally to consumer or to the holders of export license.
2. Licenses listed under sub article (1) of this article shall be issued based on mineral type and the license issued for a particular mineral shall not serve for supplying another mineral.
8. Mineral Crafting License
1. The following mineral crafting license may be issued under this proclamation;
a/ Smithery license,
b/ Lapidary license, or
c/ Combining license
2. Smithery license grants the holder of the license the right to purchase, hold, transport and smithering gold or silver as promulgated by the law and sale the product locally or abroad.
3. Lapidary license grants the holder of the license the right to purchase, hold, transport, perform lapidary works and sale locally or export precious and semi-precious minerals other than gold, silver and platinum.
4. Combining license grants the holder of the license the right to purchase, hold, transport, combine and make jewelry using processed or semi-processed minerals and sale its product locally or export. However, the holder of this license shall not purchase, make jewelries and sale raw minerals.
9. Mineral Refining License
Mineral refining license grants the holder of the license the right to refine locally produced or imported gold, silver or other metallic mineral upon receiving from miners, bank or other legally authorized person and hand over or sale after refining the mineral.
10. Mineral Smelting License
Mineral smelting license grants the holder of the license the right to smelt and give final shape to locally produced or imported metallic minerals.
11. Mineral transaction license
1/ Mineral transaction license grants the right to purchase in bulk and retail locally ornaments made from metallic, precious or semi-precious minerals.
2/ The mineral transaction license shall be issued only to each type of mineral granted with certificate of competence.
12. Mineral exporting license
1/ Mineral Exporting license grants a right to the holder to export gold and silver in their final shapes; raw, processed or semi processed precious or semi-precious minerals; or other minerals in the raw form or after value addition;
2/ The mineral exporting license shall be issued separately to each type of mineral granted with certificate of competence.
13. Eligibility for License
1. Any person, who qualifies to carryout trade in accordance with relevant laws and fulfills the requirement stipulated under this proclamation, regulation and directives issued for the implementation of this proclamation, may acquire any license referred in this proclamation.
2. Notwithstanding the provision of sub article (1) of this article;
a/ Among the licenses referred under this proclamation, mineral supplier license or gold and silver smelting license shall not be issued to foreign investor.
b/ No person, whose license has been revoked pursuant to this proclamation, may hold another license for two years following such revocation.
c/ A supplier license shall not be issued to holder of mining license. The rights under a supplier license issued to a holder of mining license prior to the coming into effective of this proclamation shall lapse after 120 days of the effective date of this proclamation.
14. Application for License
Notwithstanding to the requirements stated under other laws, an application for license shall be made in writing and contain the following.
1. Where the application is for mineral supplier license;
a/ Name, occupational address and nationality of the applicant;
b/ The type of mineral that the applicant wishes to engage in;
c/ The location where the applicant purchases and sale the mineral;
d/ An evidence showing the permanent store and work place as to be determined by the type of the mineral;
e/ Business plan;
f/ An evidence showing the capital required for the implementation of the business plan;
2. Where the application is for mineral crafting license;
a/ The requirements under sub article 1 (a), (b), (e) and (f) of this Article;
b/ System of removing unnecessary by-products;
c/ An environmental impact assessment;
3. Where the application is for mineral refining license;
a/ The requirements under sub article 1 (a), (b), (d), (e) and (f) of this Article;
b /The technical capacity to establish the refining plant;
c/ The requirements under sub article 2 (c) of this Article;
4. Where the application is for mineral smelting license;
a/ The requirements mentioned under sub article 1 (a), (b), (d) (e) and (f) of this Article;
b/ Technical capacity to establish the smelting plant;
c/ The requirements mentioned under sub article 2 (c) of this Article;
5. Where the application is for Mineral transaction license
a/ the requirements mentioned under sub-article 1 (a), (b) , (c) , (d) , (e) and (f) of this Article
b/ system as to how he notifies the consumers on the quality and quantity of the mineral he sells;
c/ evidence that shows the availability of work place to perform mineral transaction. ;
6. Where the application is for mineral exporting license
a/ the requirements mentioned under sub article 1 (a), (b) , (c) ,(d), (e) and (f)( of this Article ;
b/ source of the mineral he intended to export;
c/ the license number if he engages in mineral crafting;
15. Issuance of License
1. The licensing authority may issue a license after ascertaining that the applicant has fulfilled all the requirements and upon payment of the prescribed license fee.
2. A license may not be granted if the submitted application is not accepted or the applicant is not eligible to get the license pursuant to the law.
3. If the licensing authority refuses to grant the license, it shall notify the decision and the reason for refusal to the applicant, in writing within 10 days.
16. Duration and Renewal of the License
1. Any license shall be valid for one year from the date of issuance.
2. The license may be renewed for one year, upon payment of the prescribed fee, if the licensee meets all requirements for renewal and is not in breach of any provision of this proclamation or regulation or directives issued for the implementation of this proclamation which constitutes ground for the revocation.
3. Any licensee shall renew his license at the end of each license period. However, it may be renewed with penalty.
4. Any licensee who wishes to renew his license shall produce tax clearance certificate for the budget year from tax office.
17. Obligations of the Licensee
1. Notwithstanding to obligations stipulated under other laws, Any licensee shall have the obligation:
a/ to maintain books and records regarding minerals purchased, deposited, refined, smelted, sold or exported as the case may be;
b/ to report all transactions carried out to the licensing authority within 45 days of the end of each budget year;
c/ to report every 3 months on execution of all operational, safety and health standards set for by the ministry or other appropriate government authorities;
d/ not to hold mineral more than the amount prescribed by directives.
e/ to hold the license and certificate of competence at all times while carrying out his activity.
f/ to display the license when requested by the licensing or certificate of competence issuing authority or legally authorized inspector assigned to control illegal trade and contraband.
g/ to show the source of mineral to the inspectors.
h/ to notify the licensing authority if he changes his work place.
2. Mineral supplier licensee shall have the obligation to:
a/ supply gold and silver to the bank or legally authorized entity every budget year an amount to be determined by an agreement with the licensing authority.
b/ sell locally precious or semi-precious mineral, other than gold and silver, to the holder of a license pursuant to this proclamation.
c/ sell locally construction and industrial minerals to the holder of a license or consumer.
d/ notify the legal source and area of production of the mineral he supplies.
e/ arrange permanent work place and inform the licensing authority.
f/ purchase mineral only within the region where his license is issued.
g/ transport gold or silver to the nearest bank or legally authorized entity, precious or semi-precious minerals, other than gold or silver, to the holder of export license or to the location of the holder of lapidary license, and other minerals to the place of the next purchaser or consumer.
h/ use legal invoices while purchasing and selling mineral.
i/ provide report of purchased or sold minerals every three months to the regional licensing authority In addition to the report submitted annually as per sub article 1 (b) of this Article.
3. Mineral crafting licensee shall have the obligation to:
a/ purchase raw gold or silver only from bank or legally authorized entity;
b/ not to transfer the gold or silver he purchased to any other person in its raw form.
c/ verify that the source of the raw mineral is legal when he purchases minerals other than gold or silver.
d/ put an identifiable mark of his own on each mineral he produces.
e/ make sure that any consumer identifies the mark, know or understand the quality and quantity of the product he produces and provide proof to that effect.
f/ sell to the bank or legally authorized entity when he possesses gold or silver above the amount permitted by directive.
4. Mineral refining licensee shall have the obligation to put an identifiable mark of his own on each mineral he refines, make sure that any consumer identifies the mark, know or understand the quality and quantity of the product he refines and provide proof to that effect.
5. Mineral smelting licensee shall have the obligation to put an identifiable mark of his own on each mineral he smelts, make sure that any consumer identifies the mark, know or understand the quantity and quality of the product he smelts and provide proof to that effect.
6. Mineral transaction licensee shall have the obligation to:
a/ to make sure that all product he receives from the holder of crafting license has got the proper mark;
b/ not to alter or blend the mineral he brought from the holder of crafting license with other types of mineral;
c/ to make sure that the user or customer knows volume and the quality and quantity of his products and provide proof to that effect.
7. Mineral export license shall have the obligation to:
a/ demonstrate the legal source of the mineral when he exports raw mineral,
b/ reveal a document showing the name and license number of the licensee who processed the mineral when the export is processed or semi processed mineral in addition to demonstrating the legal source.;
c/ respect the relevant laws of the bank while exporting minerals;
d/ to export only a processed ornament in its final shape where the export is gold or silver,
e/ use legal invoice, when he purchases or sales mineral in raw or partially semi processed or in final shape.
f/ have books and records of the minerals he purchased or exported, as the case maybe.
18. Transfer of License
Any license, other than supplier license, may be transferred with prior consent of the licensing authority.
19. Revocation of the License
Without prejudice to other relevant laws, the license issued pursuant to this proclamation shall be revoked where the holder of the license:
1. Obtained the license by providing false information;
2. Fails to renew the license within the period prescribed in this proclamation;
3. Fails to maintain books and records as required by relevant laws.
4. Engage in mineral transaction activities not specified in the license;
5. Engage in activities out of the region specified in the license.
6. Purchase from, sale or transfer a mineral to a person who does not have a mining license.
7. Engage in illicit transaction or fraudulent activities in connection to the work stated in his license.
8. Fails to duly pay government tax or commit related fraudulent activities;
9. Purchase, sale or transfer mineral without legal transaction document.
20. License Fees
Fees payable for the issuance, renewal or other related services of license pursuant to this proclamation shall be determined by licensing authority pursuant to the applicable laws.
CAPTER TWO
CERTIFICATE OF COMPETENCE
21. Types of Certificate of Competence
The following certificate of competence may be issued for mineral transaction undertakings:
1. Mineral supplier Certificate of Competence;
2. Mineral crafting Certificate of Competence;
3. Mineral refining Certificate of Competence;
4. Mineral smelting Certificate of Competence
5. Mineral Transaction Certificate of Competence
6. Mineral Export Certificate of Competence.
22. Eligibility for Certificate of Competence
1. Any person, who qualifies to carryout trade in accordance with relevant laws and fulfills the requirements under this proclamation, regulation and directives issued for the implementation of this proclamation, may acquire any certificate of competence referred in this proclamation.
2. Notwithstanding the provision of sub article (1) of this article;
a/ Mineral transaction or exporter certificate of competence shall not be issued to foreign investor.
b/ No person whose certificate of competence has been revoked pursuant to this proclamation may hold another certificate of competency for two years following such revocation;
3. Any person who has been granted with certificate of competence pursuant to this proclamation, before commencement of the work, shall acquire a license from the appropriate government office upon fulfillment of the requirements.
23. Application for Certificate of Competence
An application for certificate of competence shall be made in writing and contain as the case may be the requirements for license stipulated under article 14 and other requirements to be decided by directive to be issued by the Ministry.
24. Issuance of Certificate of Competency
1. The certificate of competence issuing authority may issue a certificate of competence after ascertaining that the applicant has fulfilled the requirements upon payment of the prescribed fee.
2. Where the application is denied or the applicant is not eligible to receive the certificate of competence pursuant to the law, the certificate shall not be issued.
3. If the licensing authority refuses to grant the certificate, it shall notify the decision and the reason for refusal to the applicant, in writing within 5 days.
25. Duration and Renewal of Certificate of Competence
1. Any certificate of competence shall be valid for one year from the date of issuance.
2. The certificate may be renewed for one year if the holder of certificate meets all requirements and is not in breach of any provision of this proclamation or regulation or directives issued for the implementation of this proclamation which constitutes grounds for the revocation and upon payment of the prescribed fee.
3. All certificates shall be renewed at the end of every period of certificate of competence. However, it may be renewed with penalty.
4. Any holder of certificate who wishes to renew his certificate shall produce tax clearance certificate for the budget year from tax office.
26. Revocation of Certificate of Competence
The certificate of competence issued pursuant to this proclamation shall be revoked where the holder of the certificate:
1. Obtained the certificate of competence by providing false information;
2. Fails to renew the certificate of competence within the period prescribed in this proclamation;
3. Fails to maintain books and records as required by relevant laws;
4. Engage in activities not specified in the certificate of competence;
5. Purchase from, or sale or transfer a mineral permitted in his certificate of competence to a person who has no license;
6. Engage in illicit transaction or fraudulent activities in connection to the work stated in his certificate of competence.
7. Fails to duly pay government tax or commit related fraudulent activities ;
8. Purchase, sale or transfer mineral without legal transaction document.
27. Certificate of Competence Fees
Fees payable for the issuance of certificate of competence, renewal or other related services pursuant to this proclamation shall be determined in accordance with regulation to be issued for the implementation of this proclamation; however previous fee payment procedures shall remain applicable until the regulation becomes effective.
PART THREE
ADMINISTRATION
28. Duties and responsibilities
1. Duties and responsibilities of the Ministry
a/ Issue mineral refining, smelting for metallic and associated minerals and mineral exporter certificate of competence;
b/ Set and enforce standards in which smithery, lapidary, combining and refining activities are carried out.
c/ Approve and conduct inspection whether a laboratory test is made on export and import minerals.
d/ Work together with relevant entities and set the price of minerals if the price is not internationally determined.
e/ Determine standard for the minerals to be exported.
2. Duties and responsibilities of the licensing authority
a/ Issue, renew, revoke the license and monitor the performance of the activities
b/ Establish minerals market center subject to the importance of the mineral.
c/ In collaboration with relevant organs, monitor the legality of minerals transaction and bring those engaged in illegal minerals transaction before the court of law.
3. License and Certificate of Competencies other than those mentioned in sub article 1 /a/ of this Article shall be issued by Regional governments.

PART FIVE
MISCELLANEOUS PROVISIONS
29. Responsibility of the Bank
The bank shall have the following duties and responsibilities;
1. Purchase gold or silver produced by the holders of artisanal or special small-scale mining or supplier license.
2. Make available gold or silver for sell to the holder of crafting license.
3. Facilitate better payment condition to encourage the suppliers, make accessible market centers and expediting the transaction system.
30. Temporary Export of Samples of Minerals
1. A holder of mineral crafting license shall have the right to temporarily export sample of gold or silver in their final shape; other processed or semi processed minerals for the purpose of promotion in accordance with the directive of the bank,
2. A holder of mineral exporter license shall have the right to temporarily export sample of gold or silver in their final shapes; other minerals in raw, semi processed or processed form for the purpose of promotion in accordance with the directive of the bank,
3. Notwithstanding to the provision of sub article (1) and (2) of this Article, a holder of mineral crafting or exporter license to export sample of gold or silver in their final shape; other minerals in raw, semi processed or processed form shall be in accordance with the following procedure;
a/ The applicant shall produce a bank guaranty equivalent to the amount of their current world market price, where they are quoted in the international market, or in the absence of such price, in an amount to be specified by the ministry.
b/ The ministry shall certify the type, quality and quantity of samples of minerals before export and upon their return in accordance with this Article.
c/ Where the sample of the minerals exported pursuant to this Article fails to return fully or partially within 90 days from the date of their export, the bank and the ministry shall facilitate the deposit of the bank guaranty to the relevant government authority,
d/ Where the ministry verifies that the returned samples of minerals are not identical in quantity, quality or type with the exported samples, the provision of paragraph (c) of this sub article shall apply. However, subject to the type and character of the minerals, the list of the mineral that decreases in size during examination shall be prescribed by the regulation.
31. By-products
1. The licensee shall discard by-products from crafting; refining and smelting that do not have value and have cause environmental pollution.
2. Where the byproducts mentioned under sub article (1) of this article is valuable, the ministry shall determine by directive on how such byproduct can be used.
32. Personal Use
The quantity and quality of minerals in their final shape for personal use that any person may hold, transport, carry abroad or bring from abroad without obtaining a license shall be prescribed by Regulation.
33. Prohibited Activities
The following activities are prohibited;
1. Conducting transaction of minerals without obtaining valid license pursuant to this proclamation and other relevant laws;
2. Any holder of a license undertakes activities not indicated in the license or certificate of competence;
3. Any holder of a supplier license to transfer gold or silver to another person other than the bank or legally authorized organ, to sell an erroneous quality of gold or silver, or in any form to deceive the bank or legally authorized organ in the sale of such minerals;
4. Any holder of mineral transaction license to sell products not produced by the holder of crafting license, to modify products produced by the holder of crafting license with a view of compromising the quality or quantity of the product, to sell a product to consumers or users in a way they could not understand or know the quality and quantity, and not providing written proof of the description.
5. Any holder of crafting license to purchase raw gold or silver from other than the bank or legally authorized organ or transfer the same to any other person.
6. Any holder of a license to store precious or semiprecious minerals more than the amount to be determined by directive.
7. Any holder of mineral exporter or crafting license to fails to return precious or semi-precious minerals he temporarily exported for promotion or laboratory test in violation of the provisions of this proclamation.
8. Any holder of crafting license to produce, to sell or to transfer of ornaments without having the proper producer mark on it or put the sign in a way that the quality and quantity cannot be understood by consumer or user, and not provide written proof of the description.
9. Any holder of mineral exporter license to export mineral for sale or promotion purpose without having a laboratory result.
10. To Undertake crafting activity without having due technical preparation as required by the industry and according to the appropriate provision of this proclamation.
11. To Violate safety and environmental protection operating standard set by the ministry or other appropriate government authorities.
12. Any holder of refining license to communicate erroneous refining results or to conduct the refining below the required standard.
13. To Hold, to store, to transport, to carry out of the country or to bring from abroad precious or semi-precious mineral for personal use exceeding the limit prescribed under this proclamation or regulation to be issued.
14. Any holder of mineral smelting license not to perform properly or act decisively in relation to his duty of smelting.
34. Penalties
1. Any person who engages in the transaction of minerals without having the proper license or certificate of competence;
a/ Where it is a transaction of precious or semi-precious or metallic minerals, his minerals and any associated equipment or machine shall be confiscated and shall be punishable with a fine of 50,000 – 100,000 Birr and an imprisonment not more than 7 years;
b/ Where it is a transaction of minerals other than those mentioned under sub article 1 (a) of this Article, his minerals shall be confiscated and shall be punishable with a fine of 30,000 – 50,000 Birr;
2. A holder of a license who breaches the provision set under sub article 2, 6 and 7 of Article 33 of this proclamation shall be punishable with a fine of 30,000 – 50,000 Birr and an imprisonment not more than7 years;
3. A holder of a license who breaches the provision set under sub article 3 and 5 of Article 33 of this proclamation, his minerals and any associated equipment or machineries shall be confiscated, his business shall be closed and shall be punishable with a fine of 100,000 – 150,000 Birr and an imprisonment not more than10 years.
4. A holder of a license who breaches the provision set under sub article 4, 8, 9, 10 and 12 of Article 33 of the proclamation shall be punishable with a fine of 50,000 – 80,000 Birr and an imprisonment not more than10 years;
5. A holder of a license or a certificate of competence who breaches the provision set under sub article 11 of Article 33 of this proclamation shall be punishable with a fine of 80,000 – 100,000 Birr;
6. A holder of a license who breach the provision set under sub article 13 of Article 33 of this proclamation, his minerals shall be confiscated;
7. A holder of mineral smelting license who deceived his customer as provided under sub article 14 of Article 33, shall be punishable with a fine of 100,000 – 150,000 Birr and an imprisonment not more than 10 years;
8. A holder of mineral smelting license who failed to perform his activity as provided under sub article 14 of Article 33 of this proclamation and caused damage, shall be punishable with a fine of 50,000 – 100,000 Birr;
9. Any holder of smithery license who fails to submit report of the amount of used or broken gold or silver that he purchased as per this proclamation c, shall be punishable with a fine of 20,000 – 30,000 Birr and an imprisonment not more than 3 years.

35. Transitory Provisions
The provisions of this proclamation shall be applied to minerals transactions other than precious minerals transactions after 6 months starting from the date of the coming in to force of this proclamation.
36. Repealed Laws
1. The precious mineral transaction proclamation No. 651/2001 is hereby repealed.
2. No law, regulation, directives or customary practices shall, in so far as they are inconsistent with this proclamation, be applicable with respect to matters governed by this proclamation.
37. Power to Issue Regulation and Directives
1. The council of ministers may issue regulations necessary for the implementation of this proclamation.
2. The ministry may issue directives necessary for the implementation of this proclamation and regulations issued pursuant to sub article 1 of this Article.
38. Effective Date
This proclamation shall enter in to force on the date of publication in the Federal Negarit Gazette.

Done at Addis Ababa on this ………….th Day of ……………2019

SAHLEWORK ZEWDE
PRESIDENT OF THE FEDERAL
DIMOCRATIC REPUBLIC OF ETHIOPIA

Categories: Draft Laws

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5 replies »

  1. Thanks a lot mr.Abraham, an eye opener, a light in the darkness…..may you live long & grow old gracefully.

  2. Dear Abram really you are doing wonderful job that every body has to follow. Saying this, would you please share us the amended lobour proclamation of Ethiopia.

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