Addis Ababa, November 25 -- Ethiopia and MIDROC Gold Company, known for its various investments in and outside Ethiopia, signed on Tuesday an agreement for the exploration of over 20,000kg gold mines, which is expected to generate hundreds of millions of dollars to Ethiopia.

According to the agreement, the company, which is already in another gold mining operation in the country, will explore gold mine in Sakaro area in the Oromia regional state of the country (southeast).

Ethiopian Mines and Energy Minister Alemayehu Tegenu and MIDROC Company Chief Executive Officer Dr. Arega Yirdaw signed the agreement, which is expected to generate a multi million investment to Ethiopia.

The Sakaro gold exploration project is reported to have around 20,483kg gold mines.

The agreement, to last for 12 years, is reported to cost the company over US$ 37 million for pre-development works.

In the past ten years, the company was able to explore over 34,000kg of gold, and supply to the international market.

MIDROC Gold started its operation as a private company in March 1998. Recently Ethiopia announced the availability of around 40 tons of gold, which is estimated to worth over US$ 2 billion.

Source: APA