Small-scale businesses trading in basaltic stone, red ash and selected material sourced from areas around Addis Abeba but within the Oromia Regional State still have to wait for the green light from regional authorities to resume operations.



They have been suspended for about nine months now by the region's Mines and Energy Resource Development Bureau, which also stopped the issuance of new licenses.



The mining plots are within the newly established special zone which administers the eight towns surrounding Addis Abeba but are within Oromia Regional State.



One of the small-scale mine extractors that owns 15,000Sqm in Akaki area in a place popularly known as Kaba were informed that they needed to stop hauling out the resource in September 2008 because the regional government has been developing a master plan on land utilization and the extension of investment around the special zone.



Around 300 small-scale exploiters in these plots have been told to temporarily stop operations and requests for new licenses have been rejected since September 2008, following research the regional government has undertaken on land utilization in the zone, Megersa Bekele, general manager at the bureau, told Fortune.



The study focused on the alleged mismanagement and misuse of land; a major constraint for development in the zone. The research covers a total area of 4,300Sqkm in the zone consisting of six districts and the eight major towns.



Previously, licensing for the mine plots consisted of little regulation. Both foreign and local investers simply paid 60 Br for a filing application registered for a license and examined the availability of the proposed project site. Well researched proposals which explained the aims of the project they planned to install resulted in investors being able to rent up to 20,000Sqm land for 150 Br per day.



The Mines and Energy Resource Development Bureau offers a mining plot of between 15,000Sqm and 20,000Sqm, depending on the landscape and the content of the mineral. If the plot is rough and the mineral cannot be consistently outpoured, they will offer scales with 20,000Sqm. But if the land is plateau and has potential for extensive extraction the bureau offers them 15,000Sqm.



The regional Land and Urban Development Planning Bureau has not yet informed the action-taker when to lift the ban.



"We are waiting for any decision from the Land Development Bureau," Megersa told Fortune.



With the demand for the stones and soil on the rise due to the booming construction, especially in Addis Abeba, large-scale miners like MIDROC Construction Plc and Wag Wal Engineering Plc are expected to supply the market. These two major companies, which mainly focus on basaltic stone, have a huge production capacity boosted by the machineries they have installed on 170,000Sqm and 42,132Sqm plots and ignited by their capital of 500 million Br and over 7.4 million Br, respectively.



The MIDROC and Wag Wal mine exploitation was started in May 2004 and November 1998. They are located in Lume Woreda of Adama town and Sululta Woreda of North Shoa Zone, in that order.



The lack of proper planning and the escalating demand have resulted in unplanned expansion and unhealthy progress of the sector, according to the research.



The current price for one carriage of a basaltic stone and selected material is 260 Br and 450 Br, respectively. The raw material for construction is transported to Addis Abeba from nearby places like Kaliti, Sebeta, Sululta and Yerer.