Premier African Minerals Faces Uncertainty as Ethiopia Revokes Mining License of Key Partner
Premier African Minerals Limited is navigating fresh turbulence after the Ethiopian Ministry of Mines revoked the Mining and License Agreement (MLA) held by Circum Minerals Limited, a company in which Premier has an indirect but substantial stake.
The license termination comes amid an ongoing Force Majeure declared by Circum in September 2022—an extraordinary legal status that typically shields companies from penalties due to unforeseeable disruptions. Premier’s interest in Circum is held through Vortex Limited, which owns 36.7% of Circum’s shares. Premier itself holds a 13.1% stake in Vortex, valued at just over half a million US dollars as of June 2024.
In response to the Ethiopian government’s decision, Circum has contested the revocation and initiated formal dispute proceedings. The company has retained international law firm Boies Schiller Flexner to represent it in arbitration, seeking resolution through legal means rather than direct negotiation.
Premier CEO George Roach emphasized confidence in the long-term value of the asset and maintained hope that the license would be reinstated following arbitration. However, the move raises fresh questions for investors, particularly regarding the timing and outcome of the legal process, as well as the broader stability of mining investments in Ethiopia.
The development also underscores the risks of geopolitical and regulatory volatility in African mining jurisdictions, where legal protections like Force Majeure may not always guarantee immunity from state intervention.