This article is 6 years old. Images might not display.
MIDROC Gold Mine's Lega Dembi mine in the country's south has been hit by protests recently over its environmental impact.
Ethiopia's mining ministry ramped up anger last month by renewing the two-decade old mine's licence, Reuters said, and local media reported two protesters were killed by state security.
Following two weeks of protests, mining ministry spokesman Bacha Faji told state-affiliated television the renewal would be reversed.
"The ministry suspended the licence in response to the demands of the people," he said.
According to the most recent information from Saudi-owned MIDROC, Lega Dembi produced over 150,000 ounces of gold annually but this was 10 years ago.
BBC's Amharic service reported last year there were community concerns cyanide from the mine had caused birth defects, although this was denied by the company.
Faji said an independent body would be set up to look at the contamination accusations.
