Addis Abeba — The Oromia Mineral Development Authority (OMDA) moves to assert a significant stake over licensing and compliance matters in the region’s mushrooming mining sector.
A letter dated 05 August 2025, addressed to the Federal Ministry of Mines and copied to the Oromia Regional President’s Office, and seen by Addis Standard outlines sweeping regulatory measures that place the authority to issue, revoke, or renew mining licenses firmly in the hands of the regional government.
The decision came in the heels of an exclusive report by Addis Standard, published on 19 July, which exposed the contested renewal of three exploration licenses held by Hong Kong Xingxu Mining International Investment Co. Ltd. in West Wellega Zone. The report revealed that the licenses – covering more than 1,170 square kilometers of gold and base metal prospects – were renewed in violation of legal time limits and without proper regional consultation. OMDA cited these procedural and legal breaches in its formal request for the licenses to be revoked.
In its August letter, OMDA accuses several companies operating in Oromia of “speculative license holding for private gain” and failing to demonstrate “any verifiable track record or operational capacity.” The authority describes the current licensing regime as “riddled with non-compliance,” pointing to widespread violations of environmental regulations, neglect of community engagement obligations, and failure to fulfill regional requirements such as land rent and consultation.
Accordingly, 15 companies, including Hong Kong Xingxu Mining International Investment Co. Ltd, face “revocation of non-compliant licenses.”
A further 22 companies – among them MIDROC Gold Mine PLC’s limestone exploration license in West Hararghe, its gold and gemstone exploration licenses in Guji and East Borana respectively, as well as gold exploration licenses in Ilu Aba Bora and West Wollega zones -face “licenses requiring prior regional endorsement and agreement.”
Similarly, 21 companies have been listed for “suspension of reallocation, reassignment, or readjustment of expired or inactive licenses.”
“Most of the mineral operation licenses issued in Oromia… have consistently failed to meet regulatory obligations,” OMDA stated in the letter, arguing that the regional government is now “adopting a new strategic direction” to realign mineral governance with both Ethiopia’s reform agenda and Oromia’s constitutional rights.
The letter sets out a major policy shift. Effective immediately, no exploration or mining license will be granted, renewed, or processed by the Federal Ministry of Mines within Oromia “without prior verification and formal clearance from the Oromia Mineral Development Authority.” Any license issued without OMDA’s consent, the letter warns, “shall be deemed unauthorized by the Region.”
The move also suspends the reallocation of any expired, inactive, or terminated licenses until OMDA completes a full strategic review and reclassification process. “No administrative or technical action should be undertaken in these areas through the national cadaster system,” the letter states.
The Authority also called for a joint review of Ethiopia’s mining cadaster portal, flagging inconsistencies between mapped concessions and actual land use. Many of these listings reflect speculative claims and reveal inadequate coordination between federal and regional authorities, according to OMDA.
Among the licenses already flagged for revocation is one held by Hong Kong Xingxu Mining in West Wollega, already subject to regional reassessment according to the Addis Standard previous exposé. Appendix A of the OMDA letter formally lists Xingxu’s licenses as revoked.
The dispute over these licenses deepened when Australian mining firm Askari Metals publicly announced a “100% acquisition” of the Nejo Gold Project from Xingxu, despite no public record of federal or regional clearance for such a transaction. In a response to Addis Standard, Xingxu denied that the project had been sold outright, claiming instead that it was a joint venture or share swap agreement. “The license remains with Hong Kong Xingxu and is not transferable,” Surafel Wondimagegn, Country Manager for Hong Kong Xingxu Mining in Ethiopia, told Addis Standard, adding that Askari would contribute “technology and capital” under the terms of a partnership agreement.
OMDA, however, contests this arrangement as a backdoor attempt to circumvent regional authority. “Licenses that do not fulfill these conditions will not be recognized,” the letter said, adding that no mergers, acquisitions, or joint ventures involving existing licenses would be allowed without express written consent from OMDA.
Repeated attempts by Addis Standard to obtain comment from Askari Metals went unanswered. However, the company has continued to publish updates on its Ethiopian operations. In its most recent announcement, Askari claimed it has held multiple meetings with authorities “from both the federal Mining Ministry and the Oromia Regional Government office,” together with license holder Hong Kong Xingxu Mining International Investment Co. Ltd, securing assurances that the permits remain intact. According to the company, officials also issued a letter endorsing the March 2025 renewal.
The discussions, Askari added, concluded with agreement on an updated work program and confirmation of administrative support for the company to deploy capital and resources for exploration activities.
This latest announcement followed another on 05 August in which Askari claimed it had completed technical due diligence on the Nejo gold and copper project and finalized exploration planning for adjacent sites in Guji-Gudeya and Guliso, in preparation for a maiden drilling campaign – activity that now appears to fall under regional scrutiny.
When asked to comment, a source close to the matter told Addis Standard that the Ministry has been notified and warned that potential legal action could follow if it “continues to disseminate misleading and incorrect information.”
A senior mining consultant who spoke to Addis Standard on condition of anonymity cautions the broader implications for Ethiopia’s investment climate: “While this will strengthen local oversight, it also introduces a new layer of bureaucracy and tension on natural resource management between the federal and regional governments. Investors will have to navigate both systems, and that could either lead to better compliance – or slow down projects considerably.”
OMDA also revealed that it is preparing a comprehensive legal reform package, which will include structural critiques of the current regulatory framework and proposals for a more cooperative federal-regional governance model. The goal, OMDA stated, is to “strengthen public oversight” and ensure transparency, accountability, and equitable development in mineral investment.
While the Authority signals its alignment with Ethiopia’s broader mining reform goals, it made clear that Oromia’s sovereign right to regulate its natural resources should not be sidelined. “Strengthening the regional administrative and governance framework is essential,” the letter argued. “It enhances regulatory predictability, ensures local accountability, and builds investor confidence.”
The move by OMDA comes at a time when Ethiopia is courting global investors to scale its mining sector as one of the five pillars of the ongoing “economic reform” under the auspices of the ruling Prosperity Party. The other four are: agriculture, industry, tourism and IT sectors.
The letter’s sweeping measures are likely to trigger debate on the constitutional balance of power, regional self-determination, and resource equity and the role of the federal government.
An industry expert who spoke to Addis Standard described OMDA’s move as “a clear signal that the rules of the game have changed,” adding: “For years, regional voices in the mining sector were sidelined. This decision asserts that without local buy-in, mining operations will face legal and operational hurdles.”
Whether the Federal Ministry of Mines will accept this recalibration, challenge it, or seek to negotiate a new framework remains unclear.
Addis Standard’s repeated requests for comment from the ministry went unanswered at the time of publication.
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