News: Ministry of Mines gives 50 m birr collected from mining & oil companies to Somali state

Addis Abeba, December 02/2021 – Takele Uma, the Minister of Mines said the ministry has donated 50 million birr collected from mining and oil companies operating in the Somali regional state to the regional president Mustefa Omer.

The overriding principle of mining development is inclusivity and community engagement. pic.twitter.com/FuM3XxBaut

— Takele Uma Banti (@TakeleUma) December 2, 2021

The 50 million birr the ministry gave to the Somali regional state will be used to build infrastructure facilities in the region including schools and health facilities

In a Facebook message Minister Takele posted, he said that mining is a national and public resource, he said, minerals wealth is national and public resource and therefore communities should the main beneficiaries. “Communities in the mining areas should also benefit from the mineral and oil resources through employment opportunities and other means,” Minister Takele said.

The 50 million birr the ministry gave to the Somali regional state will be used to build infrastructure facilities in the region including schools and health facilities, Takele said.

#Ethiopia: The new formula for revenue share b/n federal & regional states from oil exploration incomes: revenue share will be 50% for federal gov. & 50% for a given regional state where the resource is found. Of the 50% federal revenue, 25% will be disbursed to other regions. pic.twitter.com/Iyn6OnaQ5v

— Addis Standard (@addisstandard) October 24, 2019

In October 2019, Dr Kuang Tutlan, then State Minister of Mines & Petroleum said a new formula was being devised outlining revenue share between the federal government and regional states where oil exploration incomes are generated from. According to Dr. Kunag, the revenue share formula will see 50% share for the federal government and the remaining 50% will be disbursed to a given regional state where the resource is found.

Out of the 50% revenue to be disbursed for a given region where the resource is found, 10% of it will be allocated for the specific area where the resources is found, while the remaining 40% of it will be for other parts of the region including the specific area where resource is found. Out of the 50% federal revenue, the 25% will be disbursed to other regional states, Dr Kuang Tutlan said at the time.

Dr Kuang also said at the time time some 4,000 barrels were supplied to markets from the gas field in in Ogaden of Somali regional state. Ethiopia was also preparing to commence the construction of 760-km crude oil pipeline from Ogaden to Djibouti in 2019, a project that has not been undertaken as planned. AS