MIDROC Ethiopia Technology Group at the Dawn of its
10th Anniversary
MIDROC Gold is a serious partner to the nation's development

In recent days we have sadly observed some bewildering articles in some newspapers about MIDROC Gold Mine.  The timing of these articles, by chance, coincides with the preparations being made to celebrate the 10th anniversary of the establishment of the MIDOC Ethiopia Technology Group companies, where part of the preparations involves the publication on the performance of each company in the Group.  MIDROC Gold Mines Plc is one of the companies in the Group.  In light of this and other factors related to time, it became essential to briefly present some facts about MIDROC Gold Mine.  A more comprehensive publication shall be made as deemed necessary in the near future.

MIDROC Gold Mine is the only industrial scale gold mine in Ethiopia and has consistently proved to be a pride to the nation.  Moreover, the company is proud of its virtues in applying modern gold mining methods, abiding by rules and regulations of the country, implementing clear & transparent methods of selling gold and its employee-focused leadership.

The activities of MIDROC Gold Mine are closely followed by all appropriate government offices both for the purpose of regulation and support.  If any person thinks that MIDROC Gold operates at will then that person either lacks basic information or is acting maliciously for personal gain or agenda.  It is obvious that there are numerous ways of getting the right information and/or data for those who are interested to do so.

What we have witnessed and observed these past few days is a repetitive effort by some newspapers to boost their sales by writing opinion-based and inaccurate information or news on some aspects of the operation of MIDROC Gold Mine.

MIDROC Gold Mine is a huge company fully aware of its responsibility to respond to any relevant enquiry about any aspects of its operation as well as legally defend and protect itself.  Hence, we would like to make it clear that, as far as a publication does not have any indication that the source of the information is officially from MIDROC Gold, then any comment with positive or negative information, is not considered to be from MIDROC Gold and hence not recognized as such by the management of the company.  It is an established fact that the management of the MIDROC Ethiopia Technology Group provides timely announcements using press releases on any pertinent issues about the Group companies.
MIDROC Gold Mine plc is among the biggest companies in Ethiopia with 1,400 employees that support more than 5,000 family members.  The company operates on an annual budget of Birr 550 million. During the last 10 years of the company's operating life, it has made USD 466 million worth of sales. Every sale was transacted through the commercial bank of Ethiopia.  Not a single dollar from sales was kept out of country as a payment to shareholders.  The company puts into practice the sincere love of our Chairman, Sheik Mohammed Hussein Ali Al-Amoudi, to our country and uses the return from investment for further growth & expansion of the company. 

Because of the nature of mining operations, MIDROC Gold Mine operates in close cooperation with the Ministry of Mines and Energy, the Federal Revenue and Customs Authority, Ministry of Finance and Economic Development, National Bank of Ethiopia, Federal Police as well as the Federal and Regional Mine regulatory bodies.  The company has its financial records audited by external auditors starting from year 1998 to 2008 E.C.  MIDROC Gold has paid, on time, its dues of profit tax, royalty and other legal payments that have to be paid in accordance with the laws of the country.  Some relevant highlights about the company are as follows:

1. Regarding permanent employees, the number has increased from 625 just after privatization to the present 1,400.
2. Total production starting from 1998 to year 2008 amounts to 33,957 kg of gold and 9,869 kg of silver.
3. The sales volume in the past 10 years amounts to Birr 4.08 billion or USD 466 million, which has been transacted in 92 shipments of gold sales todate.  All the hard currency earned from sales of the 92 shipments was transmitted, each time, directly from the buying bank in Germany to the Commercial Bank of Ethiopia, in hard currency. 
4. During the above mentioned period, a total of 14,415,161 tones (14.4 billion kilograms) of gold bearing ore was crushed and processed in order to produce the above stated quantity of gold and silver.  This has necessitated the purchase of a number of modern machinery and earth moving equipment. 
5. A capital investment amounting in hundreds of millions of Birr was spent to modernize and rehabilitate the mining operations to enhance capacity of production.
6. All gold exports/shipments for sale are done in the presence of representatives from the National Bank and the Customs Authority and all sales documents are available in these offices as well as in the Ministry of Mines and Energy.
7. The company has made proper use of the country's mining law that is intended to encourage investment in the mining industry. The company's financial statements are audited by both internal and external auditors.  Accordingly, during the time of heavy investment to modernize the operations and the low price of gold that prevailed in those days coupled with problems related to transition, the company incurred loss during the period 1998 to 2002.  The new leadership then invigorated the company which became profitable during 2003 to 2008 and still continues to be.  The company has paid all the taxes as stipulated by law.  For instance, in 2008 a profit tax amounting to Birr 119,389,854.73 was paid on April 28, 2009 in a single check.
8. The company's budget and accounting system is based on modern financial management that is supported by internal and external auditors.  Hence, since the start-up of 1998 upto 2008 all annual financial reports have been assessed first by internal auditors followed by the re-known BROMED external auditing firm.  Annual external audit reports for years 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007 and 2008 were submitted to Revenue and Customs Authority, the Ministry of Mines and Energy, the 98% shareholders sheik Mohammed Hussein Ali Al-Amoudi and his wife as well as to the Ministry of Finance and Economic Development, for being the 2% shareholder on behalf of the government.
9. Other payments such as royalty, employee's income tax, land-use tax and license permits are all paid without delay.
10. The company, in addition to the mining license, has "exploration" licenses. It is actively investing in the search for minerals, especially gold.  Exploration license areas include Adola in Oromia Regional State and Metekel in Benshangul Gumuz Regional State.  All exploration activities are being carried out in compliance with the laws of the land.  The objective is to identify a gold deposit that can secure the continuity of mining gold after the Legadambi reserve is depleted so that all stakeholders including the employees and the community can continue benefiting from the mining activities.  The exploration activities are closely followed up by our Chairman, Sheik Mohammed Hussein Ali Al-Amoudi, who would like to see the availability of sustained and continued job opportunity for our employees.  Our Chairman, unlike others, instead of deservedly collecting money from the company, encourages the management of the company to re-invest and explore for further growth of the company.

The company has continued investing to develop underground mining technology in the country. As a result some of the money from sales is deployed to cover such investments and to pay back loans taken during the initial acquisition of the company.  The company leadership runs the operation with the understanding that company expansion is vital for the future of the mine and hence dividends' are re-invested for such purposes.

1. The company has worked hard on the knowledge transfer to Ethiopians, which has helped to Ethiopianize all except two key management & technical posts.  The annual salary for Ethiopian employees that was Birr 2,744,125 for 625 employees before privatization has increased to Birr 37,889,000 for the current 1,400 employees.  The income tax from workers paid to relevant authorities in Addis Ababa and Shakisso so far amounts to Birr 41, 500,000.
2. The company has been highly cooperative to the efforts being made by the Revenue and Customs Authority in their effort to conduct general evaluation of the financial activities and audit status of several major companies, including the Technology Group Companies, in the country as well as the finger prints of employees.
3. MIDROC Gold Mine has made public its "Year 2020 Vision" in the form of printed press release on February 4, 2008 in the presence of the media representatives including a reporter each from Reporter, Capital, Ethiopian Herald and others at the office of the CEO.  This has demonstrated the transparency of our activities to those who are genuinely seeking for relevant and useful data and information to serve the interest of the public. According to the stated vision & plan MIDROC Gold Mine is positioned to continue its mining operation well beyond the year 2020.

We, at MIDROC Gold, would like to extend our gratitude to those who have been our partners in our journey during the last ten years. We shall pursue our goal of strengthening the mining industry with the anticipation that our efforts will be rewarded by establishing an additional new mine that will supplement the efforts being made at Legedembi.  The MIDROC Gold Mine management and employees express their deepest appreciation to the person who made all these possible; the ever patriot and true son of our country, our dedicated leader and Chairman, Sheik Mohammed Hussein Ali Al-Amoudi and the other two shareholders.

Released by:
The Office of the Chief Executive Officer MIDROC Ethiopia, and
the General Manager of MIDROC Gold Mine