The International Finance Corporation (IFC), the World Bank's private sector lender, said it had invested 3.4 million pounds in Ethiopia's fledgling gold mining sector through Nyota Minerals. Nyota is exploring for gold in Ethiopia and for nickel in Burundi. It is also looking at gold mining opportunities in Swaziland and at platinum mining possibilities in Ethiopia. “This investment continues our strategy of supporting early-stage exploration companies with financing and advice,” said William Bulmer, IFC head of mining, in a statement on Friday. Ethiopia said it has identified possible reserves of up to 500 tons of gold in different parts of the poor country. It now makes $105 million a year from gold exports and plans to double that amount within a year. “Nyota is very pleased to welcome IFC as a shareholder and partner on the Tulu Kapi Gold Project in Ethiopia,” said Melissa Sturgess, Nyota's chief executive and chairman. “We look forward to drawing from IFC's expertise to help ensure that the progress at Tulu Kapi follows globally recognized best practices for the mineral exploration industry, the environment, and for working with local communities.” Nyota has announced a maiden inferred resource of 690,000 ounces of gold at the Tulu Kapi project 500 km (310 miles) west of the capital Addis Ababa. Saudi Arabia's Midroc Gold Co. and Britain's Golden Prospecting Mining Co. discovered recoverable deposits estimated at more than 40 tons of gold in November and were awarded extraction licenses. The Horn of Africa nation has made $450.5 million from about 48 tons of gold exports in the last 10 years, according to the central National Bank of Ethiopia. Reliant on agriculture and commodities like coffee and sesame, the country has posted an above 10 percent average annual growth rate over the last 10 years. The International Monetary Fund said Ethiopia's economy - which is also attracting interest from foreign investors in other areas like agriculture, hydropower, and oil and gas exploration - will grow more than 5 percent this year.
