Oromia Regional State's artisanal mining sector is in flux after stricter re-registration requirements were implemented by the Mineral Development Authority six months ago. The Authority tightened registration procedures, requiring Taxpayer Identification Numbers (TIN), member identification documents, and association memorandums, which led to the 2,063 registered associations significantly dropping to 803. These reforms come against the backdrop of a regulatory loophole for unemployed youth permits used by employed individuals.

While the federal government's role lies in regulating small-scale industrial mines, regional states have the authority to issue artisanal mining licenses. Zewdu Taddesse, the Authority's deputy head, said the regulation aims to curb illegal mining and tighten oversight while boosting royalty revenues.

"We were quite patient," he told Fortune.

He said many associations were reluctant to provide identification documents required for re-registration after the stricter requirements were implemented in December. Only 365 were registered after the notice which concerns Zewdu  that loose regulations in the past exposed artisanal mining to exploitation.

The tension between the government's desire to increase revenue and control the mining sector, and the challenges faced by legitimate miners who must navigate the expensive regulatory road is palpable.

Oromia's royalty payments have risen by 700 million Br in eight months, suggesting the stricter regulations might be achieving their goal of increasing government revenue from mining. However, the cost of obtaining artisanal mining permits has also increased by 38pc to 1,750 Br, with similar hikes for small-scale to industrial permits between 8,502 to 15,700 Br.

A 20-year trend of tightening regulations in the artisanal mining sector suggests illegal mining appears to be on the rise, potentially due to the discovery of new mineral deposits. Exports of tantalum, lithium, and gold accounted for 142.9 million dollars in revenues during the first six months of the fiscal year.

Mengistu Waji, head of Guji Zone's Mining Bureau, points out that re-registrations aim to realise the national ambition and increase mining exports and employment despite unfinished exploration by Authorities. He said the mandatory requirement of 12Kg of gold submissions to the central bank and similar volume quotas have created anxiety in the associations.

"No one wants to get incarcerated," Mengistu told Fortune.

The drastic drop from 138 registered associations to only nine after the reforms highlights the significant impact on local miners. A pilot program started three years ago failed to get off the ground. It sought to partner with youth associations that have a local understanding of the terrain with investors looking to engage in mining operations.