Opportunities for Silica Sand development in Ethiopia

SILICA SAND
PROMOTION
DOCUMENT

OCCURRENCE OF SILICA SAND IN

ETHIOPIA

BY: MESFIN TESSEMA

GEOSCIENCE DATA DIRECTORATE (GSE)

July,2012

Geological Survey of Ethiopia (GSE) July 2012 Page 1

 Opportunities for Silica Sand development in Ethiopia

Table of Contents

1 INTRODUCTION...................................................................................................................................2
1.1 Physical and Chemical Properties................................................................................................2
1.2 Processing Technologies..............................................................................................................3
1.3 Geology and Occurrences............................................................................................................4
2 APPLICATIONS.....................................................................................................................................5
3 SILICA SAND POTENTIAL OF ETHIOPIA.................................................................................................7
3.1 Fetera Silica sand/Sandstone.......................................................................................................8
3.2 Mugher Silica sand/Sandstone..................................................................................................10
3.3 Enticho Silica Sand /Sandstone..................................................................................................12
4 MARKET AND TRADE.........................................................................................................................13
4.1 Opportunities.............................................................................................................................14
5 ABOUT THE MINISTRY OF MINES.......................................................................................................14
5.1 Mining Legislation......................................................................................................................14
5.2 Investment Climate of Ethiopia.................................................................................................15
5.3 Mineral Investment...................................................................................................................15
6 REFERENCES......................................................................................................................................17
Table ofFigures

Figure 1 Silica sand deposits at Fetra (Photo.by Michael N.).......................................................................2

Figure 2 Silica sand deposit seen from top view and Wenchit
river from distant view (Photo.by Michael N.)............................................................................................3
Figure 3Horizontally bedded, light grey silica sand deposit........................................................................4
Figure 4 Geological map of Fetra area (Modified after Melkamu M.et al.,2010)........................................9
Figure 5 Light to light grey, cross bedded and horizontally layered silica sand deposit at Fetera(Photo.by
Michael N.)................................................................................................................................................10
Figure 6 Location map of Silica sand occurrences.....................................................................................11
Figure 7 Fetra Silica sand deposit (Photo.by Michael N.)...........................................................................12
Tables

Table 1 Estimated reserves of Silica sand....................................................................................................7

Table 2 Chemical composition of Silica sand in Fetra and Mugher area......................................................8
Table 3 Standards for chemical composition of Silica sand for different countries..................................12
Table 4 Industrial (Silica) Sand: World Production by Country................................................................13
Table 5 Silica sand Production in Ethiopia, 2000-2005 (BGS, 2007)...........................................................13

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 Opportunities for Silica Sand development in Ethiopia

1 INTRODUCTION
Industrial sand is a term normally applied to
high purity silica sand products with
closelycontrolled sizing. It is a more precise
product than common concrete and asphalt
gravels.Silica is the name given to a group
of minerals composed solely of silicon and
oxygen, thetwo most abundant elements in
the earth’s crust. In spite of its simple
chemical formula,SiO2, silica exists in many Figure 1 Silica sand deposits at Fetra(Photo.by Michael N.)

different shapes and crystalline structures. Some silica sand deposits may cater for the
Found mostcommonly in the crystalline used primarily as metallurgical sand.
state, it also occurs in an amorphous form Thecopper and zinc at some smelter uses the
resulting fromweathering or plankton sand as a fluxing agent which, in the
fossilization. moltenstate, reacts with various impurities in
For industrial and manufacturing the ore and produces a slag. The slag is
applications, deposits of silica yielding drawn offwith the impurities, leaving a more
products of at least95% SiO2 are preferred. refined metal behind.Silica sands have a
Silica is hard, chemically inert and has a large number of other industrial uses
high melting point,attributable to the depending on their characteristics.
strength of the bonds between the atoms.
These are prized qualities inapplications like 1.1 Physical and Chemical Properties
foundries and filtration systems. Quartz may The three major forms of crystalline silica -

be transparent to translucentand has a quartz, tridymite and cristobalite- are stable

vitreous lustre, hence its use in glassmaking at different temperatures and have

and ceramics. Industrial sand’sstrength, subdivisions. For instance, geologists

silicon dioxide contribution and non-reactive distinguish between alpha and beta quartz.

properties make it an When low temperature alpha quartz is

indispensableingredient in the production of heated at atmospheric pressure it changes to

thousands of everyday products (KamarA., beta quartz at 5730C. At 8700C tridymite is

2004). formed and cristobalite is formed at 14700C.

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 Opportunities for Silica Sand development in Ethiopia

undergo considerable processing before sale.

The objectives of processing are to clean the
quartz grains and increase the percentage of
silica present, to produce the optimum size
distribution of product depending upon end
use and to reduce the amount of impurities,
especially iron and chromium, which colour
glass.
To meet these tight specifications, the sand
often has to be subjected to extensive

Figure 2Silica sand deposit seen from top view and Wenchitriver
physical and chemical processing. This
from distant view (Photo.by Michael N.)
involves crushing, screening and further
Quartz is usually colourless or white but is
adjusting the grain-size distribution, together
frequently coloured by impurities, such as
with removing contaminating impurities in
iron, and may then be any colour. Quartz
the sand and from the surface of the
may be transparent to translucent, hence its
individual quartz grains. The presence of
use in glassmaking, and have a vitreous
metallic oxides in glassmaking sands usually
lustre. Quartz is a hard mineral owing to the
results in colored glass. If iron is present, the
strength of the bonds between the atoms and
resulting glass is coloured green or brown.
it will scratch glass. It is also relatively inert
The iron level is consequently the most
and does not react with dilute acid. These
critical parameter in determining whether
are prized qualities in various industrial
particular sand can be used to make clear
uses. Depending on how the silica deposit
glass. Sands used to manufacture colourless
was formed, quartz grains may be sharp and
glass are therefore likely to be processed
angular, sub-angular, sub-rounded or
further by methods such as acid leaching,
rounded. Foundry and filtration applications
froth flotation or gravity separation.
require subrounded or rounded grains for
best performance.
1.3 Geology and Occurrences
Silica sand is an industrial term used for
1.2 Processing Technologies
sand or easily disaggregated sandstone with
Silica deposits are normally exploited by
a veryhigh percentage of quartz (silica)
quarrying and the material extracted may
grains. Quartz is the most common silica

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 Opportunities for Silica Sand development in Ethiopia

crystal and thesecond most common mineral quartz-bearing igneousand metamorphic

on the earth's surface. It is found in almost rocks such as granites and some gneiss.
every type ofrock; igneous, metamorphic Erosion and chemicalweathering break
and sedimentary. While quartz deposits are down the less stable minerals such as
abundant, andquartz is present in some form feldspars and release the morestable ones
in nearly all mining operations, high purity such as quartz and zircon. The stable
and commerciallyviable deposits occur less mineral fragments are transported
frequently. Silica sand deposits are most andredeposited in water. Wave and stream
commonly surfaceminedin open pit action may further modify the deposits by
operations, but dredging and underground sortingand washing until a relatively pure
mining are also employed.Extracted ore deposit of silica sand remains.
undergoes considerable processing to Most of the products sold for industrial use
increase the silica content by are termedsilica sand. The word "sand"
reducingimpurities. It is then dried and sized denotes a material whosegrain size
to produce the optimum particle size distribution falls within the range 0.06-
distribution for theintended application. 2.00millimetres. The silica in the sand will
normally be in thecrystalline form of quartz.
For industrial use, pure depositsof silica
capable of yielding products of at least 95%
SiO2are required. Often much higher purity
values are needed.Silica sand may be
produced from sandstones, quartziteand
loosely cemented or unconsolidated sand
deposits.High grade silica is normally found
in unconsolidateddeposits below thin layers
Figure 3Horizontally bedded, light grey silica sand deposit of overburden. It is also found as "veins" of
with yellowish grey bands in between light bands(Photo.by
Michael N.)
quartz within otherrocks and these veins can
Silica sand may be produced from both be many meters thick. On occasions,
unconsolidated sands and crushed extremely high purityquartz in lump form is
sandstones.The sand is a product of required and this is produced from quartzite
mechanical and chemical weathering of rock. Silica is usuallyexploited by quarrying

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 Opportunities for Silica Sand development in Ethiopia
and it is rare for it to be extracted by
underground mining.
2 APPLICATIONS
Glassmaking: Silica sand is the primary
component of all types of standard and
specialtyglass. It provides the essential SiO 2
component of glass formulation and its
chemical purityis the primary determinant of
colour, clarity and strength. Industrial sand
is used to produceflat glass for building and
automotive use, container glass for foods
and beverages, andtableware. In its
pulverized form, ground silica is required
for production of fiberglass insulation and
reinforcing glass fibres. Specialty glass
applications include test tubes andother
scientific tools, incandescent and fluorescent
lamps, television and computer
CRTmonitors.
Metal Casting: Industrial sand is an
essential part of the ferrous and non-ferrous
foundryindustry. Metal parts ranging from
engine blocks to sink faucets are cast in sand
and claymould to produce the external
shape, and a resin bonded core that creates
the desiredinternal shape. Silica’s high
fusion point (1760°C) and low rate of
thermal expansionproduce stable cores and
moulds compatible with all pouring
temperatures and alloysystems. Its chemical
Geological Survey of Ethiopia (GSE)
purity also helps prevent interaction with
catalysts or curing rate ofchemical binders.
Following the casting process, core sand can
be thermally ormechanically recycled to
produce new cores or moulds.
Metallurgical: Industrial sand plays a
critical role in the production of a wide
variety offerrous and non-ferrous metals. In
metal production, silica sand operates as a
flux to lowerthe melting point and viscosity
of the slag to make them more reactive and
efficient. Lumpsilica is used either alone or
in conjunction with lime to achieve the
desired base/acid ratiorequired for
purification. These base metals can be
further refined and modified with
otheringredients to achieve specific
properties such as high strength, corrosion
resistance orelectrical conductivity.
Ferroalloys are essential to specialty steel
production, and industrialsand is used by the
steel and foundry industries for de-oxidation
and grain refinement.
Chemical Production: Silicon-based
chemicals are the foundation of thousands
ofeveryday applications ranging from food
processing to soap and dye production. In
thiscase, SiO2 is reduced to silicon metal by
coke in an arc furnace, to produce the
Siprecursor of other chemical processes.
Industrial sand is the main component in
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 Opportunities for Silica Sand development in Ethiopia

chemicalssuch as sodium silicate, silicon mildew, cracking and weathering. Low oil
tetrachloride and silicon gels. These absorption allowsincreased pigment loading
chemicals are used inproducts like for improved finish color.
household and industrial cleaners, to Ceramics & Refractories: Ground silica is
manufacture fiber optics and to an essential component of the glaze and
removeimpurities from cooking oil and bodyformulations of all types of ceramic
brewed beverages. products, including tableware, sanitary ware
Building Products: Industrial sand is the and floorand wall tile. In the ceramic body,
primary structural component in a wide silica is the skeletal structure upon which
variety ofbuilding and construction clays and fluxcomponents attach. The SiO2
products. Whole grain silica is put to use in contribution is used to modify thermal
flooring compounds,mortars, specialty expansion, regulatedrying and shrinkage,
cements, stucco, roofing shingles, skid and improve structural integrity and
resistant surfaces and asphaltmixtures to appearance. Silica products arealso used as
provide packing density and flexural the primary aggregate in both shape and
strength without adversely affecting monolithic type refractories toprovide high
thechemical properties of the binding temperature resistance to acidic attack in
system. Ground silica performs as a industrial furnaces.
functional extenderto add durability and Filtration and Water Production:
anti-corrosion and weathering properties in Industrial sand is used in the filtration of
epoxy based compounds,sealants and caulks. drinking water,the processing of wastewater
Paint and Coatings: Paint formulators and the production of water from wells.
select micron-sized industrial sands to Uniform grain shapesand grain size
improve theappearance and durability of distributions produce efficient filtration bed
architectural and industrial paint and operation in removal ofcontaminants in both
coatings. High puritysilica contributes potable water and wastewater. Chemically
critical performance properties such as inert, silica will not degradeor react when it
brightness and reflectance, colorconsistency, comes in contact with acids, contaminants,
and oil absorption. In architectural paints, volatile organics or solvents.Silica gravel is
silica fillers improve tint used as packing material in deep-water wells
retention,durability, and resistance to dirt, to increase yield from theaquifer by

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 Opportunities for Silica Sand development in Ethiopia

expanding the permeable zone around the fertilization. The natural grain shapeand
well screen and preventing theinfiltration of controlled particle size distribution of silica
fine particles from the formation. provides the required permeability
Oil and Gas Recovery: Known commonly andcompaction properties for drainage,
as proppant, or “fracsand,” industrial sand healthy plant growth and stability.
ispumped down holes in deep well
applications to prop open rock fissures and 3 SILICA SAND POTENTIAL OF
increase theflow rate of natural gas or oil. In ETHIOPIA
this specialized application round, whole Consolidated sandstone may be crushed for

grain deposits areused to maximize aggregate (construction) and if aesthetically

permeability and prevent formation cuttings attractive, cut and shaped into blocks or

from entering the well bore.Silica’s hardness slabs for building (dimension stone). When

and its overall structural integrity combine sandstone, silica sand and quartzite are

to deliver the required crushresistance of the crushed or ground are a source of SiO2

high pressures present in wells up to 2,450 (glass, ceramics, chemical) and fluxingagent

meters deep. Its chemicalpurity is required (iron and steel). Silica is a principal glass-

to resist chemical attack in corrosive forming oxide making approximately 60%

environments. of the soda-lime-silica glass batch.

Recreational: Industrial sand even finds its Cretaceous sandstones are the main sources

way into sports and recreation. Silica sand of silica sand in Ethiopia. Silica sand occurs

isused for golf course bunkers and greens as in the Mugher Valley, in the Jemma-

well as the construction of natural or Wonchit River basin, and in the Enticho

syntheticathletic fields. In golf and sports units of Adigrat Group of Tigray region.
Table 1 Estimated reserves of Silica sand
turf applications silica sand is the structural
ID Location X Y Reserve
component ofan inert, uncontaminated,
(M tons)
growing media. Silica sand is also used to 1 Fetra 485908 1107781 212.5
2 Mugher 454244 1031638 3. 413
repair greens and tofacilitate everyday 3 Enticho 571865 1593770
maintenance like root aeration and

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 Opportunities for Silica Sand development in Ethiopia
3.1 FeteraSilica sand/Sandstone
The Fetera silica sand deposit is part of the
Upper Sandstone Formation of the Abay
basinsedimentary succession. Its white to
light grey in color, composition with quartz
dominant and kaolin minor, friable, well
exposed horizontal bedding with promising
vertical and lateralextent.
The fetrasandstone is outcropped at the
northeast of Wenchit area and at the middle
Feteraarea. The sandstone unit at Wenchit
overlays the mudstone claystone unit and is
Table 2 Chemical composition of Silica sand in Fetra and Mugher area
ID Location SiO2 Fe2O3
1 Fetra(Unwashed) 91.15 0.75
2 Fetra(Washed) 97.9 0.65
3 Mugher 96.43 0.20
4 Enticho 99.0 0.21
The sandstone deposit of fetra is light gray
to white some pink layers few centimeters to
one meter thick. These layers interlayer with
the light grey sand layers. The pink layers
commonly are coarser in grain size and
contain relatively lower clay content than
the gray to white varieties.
The chemical analysis of 58 unwashed
samples showed about 91.29% silica, 5.29%
aluminum xide and 0.75% iron oxide (table
2). While 8 washed samples showed about
97.9% silica, 0.8% alumina, 0.65% iron
Geological Survey of Ethiopia (GSE)
light yellowish to reddish, mostly massive
and cross bedded at the bottom and light
gray to light yellowish at the top. This unit
forms a sharp cliff covered with Tertiary
basalt at the top (figure3). The Fetera
sandstone is a little different in that it has a
thick layer of white to light gray friable
sandstone layers above the reddish and
compacted lower part. The light gray to
white friable sandstone is promising for
silica sand production(Melkamu M etal.
2010).
Al2O3 TiO2 Cr2O3
5.29 0.4
0.8 0.2
1.37 <0.02
0.35
oxide and 0.4% titanium oxide. This result
indicated that washing increases percent of
silica and decreases percent of alumina
while unchanging the value of iron and
titanium oxide in the silt to sand size grains.
The result verifies that silica content is
related to the silt to sand sized quartz grains.
Whereas, the iron and titanium would be
associated to either silt to sand sized quartz
as coating, intergrowth or as a free iron and
titanium bearing mineral grain.
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 Opportunities for Silica Sand development in Ethiopia

Figure 4 Geological map of Fetra area (Modified after Melkamu M.etal.,2010)

Therefore beneficiation processes (washing, Selective mining might be necessary to mine

screening, attrition scrubbing, acid leaching, high quality beds(Melkamu M et.al. 2010).
heavy mineral separation and magnetic The pink to yellowish layer contain
mineral separation) are vital to reduce iron relatively higher coloring oxides. If
and titanium content before using the silica beneficiation on these colored bands can
sand for different applications. reduce the coloring components to the
The grain size of Fetera sand is dominantly required level, then the whole thickness can
sandy (82%) with minor clay (12%) and be considered as potential resource,
granule(6%) showing a suitable size range otherwise selective mining might be
of sand for glass and other applications. The necessary.Theestimated resource of silica
Fetera silica sand resource is calculated to sand in fetra area is calculated to be 212.5
213 million ton at indicated resource million tons.
category. It has an open mining possibility.

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 Opportunities for Silica Sand development in Ethiopia

3.2 MugherSilica sand/Sandstone carbonate-clay and gypsiferous of late

The area is located north west of Addis
Jurassic age (Tibebu M.et al.,1989).
Ababa with an aerial distance of 55 KM. It
The mineralogical composition of mugher
lies between 380 35’-380 38’longitude and 90
sandstone consists of:-Quartz 96-98%,
20’-9030’ latitude (figure5) and about 22
Feldspar 1- 2%, Muscovite 1-2 % and traces
Km north west of chancho, in northern shoa
of ilmenite, carbonate minerals, magnetite,
administrative region.The silica sand deposit
graphite, garnet, zircon, tourmaline and
at Koffi-mute is situated about 3 Km south
pyrite. Mineralogical composition of the
west of Kittery. Derba is reached from
mugher sandstone varies depending on the
addis Ababa by following the main asphalt
grain size.
road toDebremarkos for about 35 km from
Micas, graphite, carbonate minerals,
addisababa and then turning to the
feldspar, garnet and pyrite are common in
left, following a good gravel road from
coarser fractions (0.5-0.25mm), of which the
chanocho for 22Km.
percentage of this fraction is negligible.And
The silica sandstone deposit is situated 3 km
their presence doesn’t essentially influence
south-west of mugher limestone quarry
the bulk composition. Washing and sieving
(Kittery) and Confined to Mesozoic
removes these impurities (mica, Carbonate
sedimentary rock. The deposit consisted of
minerals, feldspar and clay fractions) from
near horizontally bedded cretaceous
the sandstone and thus improve the
granometrical and mineralogical
composition of the silica sand and upgrade
the quality.
Simple benefication such as attrition
washing upgrade the quality of silica sand
deposits for various industrial applications
(Tibebu M. et al.,1989).
Figure 5 Light to light grey, cross bedded and horizontallylayered
silica sand deposit at Fetera(Photo.by Michael N.)

sandstone sandwiched between sandy clay

and calcareous succession of the same age.
Underlying the cretaceous succession are

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 Opportunities for Silica Sand development in Ethiopia

Figure 6 Location map of Silica sand occurrences

The average chemical composition of the The estimated reserve of the area is found to
Koffe-Mute sandstone is shown in table 2. be 3.414 million tons (table1). Generally,
The analyses were carried out on the 0.1- the chemical, mineralogical and
0.25mm sand fractions. In SiO2 indices the granulometric assessment of channel and
averageSiO2contents in excess of 95% after core samples from Koffe-mute area
simple washing, theFe2O3contents in 95% of (mugher) proves that it could be used for
the channel and core samples ranges bottle and sheet glass factories.
between 0.01-0.38% (table 2).

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 Opportunities for Silica Sand development in Ethiopia

Table 3 Standards for chemical composition of Silica sand for different countries

ID Location SiO2 Fe2O3 Al2O3 Cr2O3 Ti2O3

1 USSR 95-98.5 0.03-0.2 0.6-2 0.005
2 USE 95-98.2 0.06 0.5-4 -
3 Czech 98.5-99 0.02-0.04 0.3-0.4 0.15
4 Belgium - 0.005-0.01 - -
5 Poland - 0.06-0.01 - -
6 UK 96-99 0.02-0.014 0.2-1.6 -
7 GDR 98-98.8 0.03-0.04 0.3-2 -

3.3 EntichoSilica Sand /Sandstone 0.1mm and the coarser fraction (>0.63mm)
The silica sand deposits of Enticho area are
ranges from 11% to 30%. Chemical
grouped within the Upper Paleozoic-
analyses of Senkata silica sand shows 98.4-
Mesozoic sediments of lower part of Adigrat
99.6% SiO2, 0.1-0.33% Fe2O3 and 0.1-0.6%
group. The rocks of Adigrat group
Al2O3 (Table 2). It is possible to obtain high
comprises of three formations (Garland,
quality material by washing, sieving and
1980), namely Enticho sandstone,
attrition so that the raw material can have
EdgaArbiglacials and Adigrat sandstones,
acceptable grade for the sheet glass
which overlay unconformably on the
manufacturing (Tibebu M.et al.,2002).
Precambrian rocks of Upper Complex and
overlain by the JurrasicAntalo limestone,
AmbaAradom formation and Tertiary
volcanics.
The silica sand deposits of Enticho
Sandstone at the localities of EdagaHamus
and Senkata are generally white to grey,
medium to coarse grained and at places
kaolinized. The thickness of the sandstone
ranges from 15-30m. According to Tadelle Figure 7Fetra Silica sand deposit (Photo.by Michael N.)

1996 the average granulometric composition

of the silica sand ranges between 62% and
65% for a size fraction between 0.63mm and

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 Opportunities for Silica Sand development in Ethiopia

4 MARKET AND TRADE
World production of industrial sand, based
on information usually provided by foreign
Governments, was estimated to be 120
million metric tons, about the same as 1994.
low priced silica while higher priced silica
came from Belgium, Canada, Germany,
Japan, Sweden, and the United Kingdom.
Table 4 Industrial (Silica) Sand: World Production by
Country

The United States was the leading producer Country 1996 1997 1998 1999 2000
United 27,800 28,500 28,200 28,900 28,400
followed by, in descending order, Germany, States
Germany 5,503 6,000 6,000 7,000 7,000
Austria, Spain and France. Most countries Austria 6,012 6,000 6,329 6,857 6,800
in the world had some production and Spain 5,300 5,800 6,200 6,550 6,600
France 6,550 6,560 6,500 6,500 6,500
consumption of industrial sand because it is United 4,816 4,800 4,800 4,000 4,000
Kingdom
essential to the glass and foundry industries. Italy 2,950 3,000 3,000 3,000 3,000
Japan 3,557 3,306 3,049 2,764 2,800
Beyond those countries listed, several other
Brazil 2,700 2,700 2,700 2,700 2,700
countries were believed to have had some Australia 2,500 2,500 2,500 2,500 2,500
Belgium 2,300 2,300 2,400 2,400 2,400
type of silica production and consumption.
South 2,168 2,439 2,273 2,163 2,100
Africa
(table4) Czech 2,486 1,800 2,000 2,000 2,000
Republic

Exports of industrial sand were essentially

unchanged from 1994, while the associated
value increased 4%. Export distribution is
as follows: 76% went to Canada, 7% went
toMexico, 8% went to Asia, 6.5% went to
Europe, and the remainder went to the
Middle East, Oceania, and South America.

Compared with those of 1994, imports for

consumption of industrial sand increased
170% to 65,000 tons valued at $2.7 million.
Silica imports vary greatly from year to year
but are always rather insignificant.
Australia supplied 95% of the silica imports
for 1995, averaging about $25.50 per ton.
The Australian imports were the relatively

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 Opportunities for Silica Sand development in Ethiopia

Table 5 Silica sand Production in Ethiopia, 2000-2005 (BGS, 2007)

Commodity (tons) 2000 2001 2002 2003 2004 2005

Sand 1221000
Sand stone 5601 6000 6000 6000 6000
Silica Sand 15761 17000 19000 19000 19000

Sources: Data for 2004-04: Yager TR (2004) US Geol.Surv. Accordingly the Federal Government’s
Minerals Yearbook 2004, 17.1-17.5.

4.1 Opportunities
Ministry of Mines is responsible to
The accessibility of the deposit area to the administer and supervise all large scale
capital city, a large potential mining operations including:issuing
resource/reserve and the increasing demand prospecting, exploration and mining licenses
of the booming construction industry will for foreign investors and to these in joint
create a huge market in the country. The venture with Ethiopians as per the reform
chemical, mineralogical and granulometric issued in 1998 on the Mining proclamation
assessment of channel and core samples following the realization of previous
from Koffe-mute area (Mugher) proves that shortcomings of earlier laws and policies.
it could be used for bottle and sheet glass
The reform clearly stipulated the
factories.By using simple beneficiation
responsibility of National Regional
process such as washing, screening, attrition
Governments to issue licenses and
scrubbing, acid leaching, the Fetra and
administer all small scale mining operations
Entichosandstones can easily be improvedto
owned by Ethiopians and collecting all fees
the required quality for production of
in addition to issue prospecting and
various glasses.
exploration licenses for national investors.

5 ABOUT THE MINISTRY OF MINES 5.1 Mining Legislation

In June 1993 new Mining and Mining
In compliance with the market oriented
Income Tax Proclamations were issued
economic policy of Ethiopia the parliament
having considered knowledge-based
declared that it is the continuing policy of
experiences in some competitive countries
the Federal Government in the national
and given the following;
interest to foster and encourage private
enterprises in developing economically Invite private investment in all kinds
sound and stable mineral mining. of mineral operations

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 Opportunities for Silica Sand development in Ethiopia
Provides a prospecting license for
one year
Provides an exploration license for
an initial period of three years and
renewed twice for one year each
Provides a mining license for 20
years and renewed for 10 years
unlimitedly;
Guarantee the licensee’s right to sell
all the minerals locally or abroad
giving marketing freedom
Provides for exemptions
custom duties and taxes
equipment, machinery, vehicles and
spare parts
Gives securities of tenure
Gives clear provisions on fiscal and
other issues
Considering taxation on repatriation
of profits and capitals, a licensee
shall pay a 2-5% royalty on ad Val
Orem at production site, and a 35%
income tax on taxable income.
Taxable income is computed by
subtracting from gross income for
any accounting year all allowable
revenue expenditure, a four years
straight line depreciation,
reinvestment deduction
permitted loses;
The mining proclamation guarantees the
Geological Survey of Ethiopia (GSE)
opening and operation of a foreign currency
account in banks in Ethiopia, retention of
portion of foreign currency earning and
remittances of profits, dividends, principal
and interest on a foreign loan etc. out of
Ethiopia.
Of course this fiscal package is still subject
to frequent reviews for we want to maintain
a balance between the objective of the
government and investors as is evident by a
series of amendments of the 1993.
from
on 5.2 Investment Climate of Ethiopia
The Federal Democratic republic of Ethiopia
has created a conducive investment
environment to ensure, (promote) private
investment play a leading role in the
development of the national economy. This
favorable climate for foreign investment has
been created as consequence of the solid
foundation of political and economic reform,
particularly the stably secured
macroeconomic reforms which are achieved
by carefully managed sequential reforms
coupled with faire fiscal and monetary
policies. By virtues of Ethiopia’s unique and
untapped natural resources, its proximity to
Middle East and European markets, its 80
million populations, and huge labor force
and
both disciplined and easily trainable are
some of the comparative advantages worthy
of consideration while investing in Ethiopia.
July 2012 Page 16
 Opportunities for Silica Sand development in Ethiopia
This is further enhanced by specific
incentives and efficient administrative
procedures.
5.3 Mineral Investment
Between 1974 and 1991 private investments
were not allowed in the mineral sector. The
government was fully responsible for the
exploration and development of the sector,
before the advent of the new economic
policy of Ethiopia. In compliance with the
new market oriented economic policy of
Ethiopia the parliament declares that it is
continuing policy of the Federal
Government in the national interest to foster
and encourage private enterprises in
developing economically sound and stable
mineral mining.
For a successful implementation of the
policy a number of steps have been taken
aiming to boost the confidence of the private
sector following the governments strong
believe that rapid mineral development can
only be realized when the private sector is
given a full right of operating managing and
owning mineral enterprises.
This is the underlined reason for the
government’s active response to the concern
of the International mining Companies.
Accordingly it has restricted its role to basic
mineral resources exploration, regulation
Geological Survey of Ethiopia (GSE)
and promotion only such as;
To avoid the fear of controlling a
large tract of prospective land by
state owned companies
To avoid the fear of seeable high risk
due to unexpected unfair competition
with state owned enterprises.
In this connection a measure stick for such
truck record of the government’s
commitment is manifested by the privatized
LegeDembi Gold Mine, the only one
government owned large scale gold mining ,
and the small scale Kenticha Tantalum Mine
which is already in the pipeline for
privatization. This includes the reform of the
mining law which is taking place since 1993
and many changes that have happened
justify the sincerity of the government.
Furthermore the commitment is much
affirmed following the establishment of a
fair and clear cut mining legislation giving
investors assurances of the fruits of their
success. It constitutes a fair setup of efficient
and effective licensing and mineral right
administration system, a fair set of
environmental laws, rules to monitor and
mitigate and reclamation effects by mining
operation, fair laws to regulate the safety
and health of the work force and securing of
tenure. It also gives to license holders with a
July 2012 Page 17
 Opportunities for Silica Sand development in Ethiopia

number of incentives including low royalty,

exemption from custom duties and taxes on
the equipment, machineries vehicles, and
spare parts necessary for mineral operations
with a 10 years provision to allow investors
to carry forward losses.

6 REFERENCES
BGS, (2007): Demand/ Supply Survey of the
Ethipian Industrial minerals Sub-sector,GSE,
Addis Ababa.
Garland, G. R. (1980): Geology of the Adigrat
area, Ministry of Mines, Energy and Water
Resources, EIGS Memoir No.1.
KamarA., (2004): What is silica, EBS 425 – Mineral
Perindustrian.
Lavrinenco L., Tibebu M., Tesfaye E., HagosT.and
Wondafrash M. (1989) evaluation of sheet glass
row material(silcasand,,Dolomite and Calcite
marble, Feldspar at North Shoa,West
Hararghe,Sidamo),GSE Addis
Melkamu M.,Michael N.,Genenew B. and Nigussie
D. (2010): Report onDetail Exploration and
Evaluation ofIndustrial Resources ofParts of
Wenchit and Jema river valleys,GSE Addis
Ababa, Ethiopia
Mengistu, T. and Fentaw, H.M. (2002): Industrial
Minerals And Rocks ResourcePotential Of
Ethiopia,GSE
Tadele, H., (1996): Assessment of Sheet Glass
and Ceramics Raw Materials in Tigray Region.

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