The Ethiopian government, along
with private sector partners, is taking steps to tap the country's vast
underground resources.
“Ethiopia has considerable
reserves of gold, potash, zinc, gemstones and tantalum,” geological survey
consultant Yalew stated. “But they remain unstudied, unexplored and
undeveloped.”
Ethiopian Minister of Mines,
Petroleum and Natural Gas Tolossa Shagi stated that the government is stepping
up efforts to support the mining industry.
“There is hope that Ethiopia will
become a country in the short term whose extraction industry will contribute
significantly to GDP,” the minister said in an interview.
The minister pointed out that
revenue from mining had not met its goal, as defined by the government’s
economic plan for 2014. Ethiopia had planned to secure mining revenue of $646
million during 2014/15 but only earned about half of that, $363 million,
according to government statistics.
“Within a period of two years,
Ethiopia will start natural gas production from its Kalub and Lala areas in the
Somali regional state where 7.4 trillion cubic feet of natural gas is being
developed for domestic use and for export via Djibouti,” the minister said. The
government is financing the project, in a public-private partnership with the
Chinese mining firm GCL; GCL will also build the pipeline to Djibouti.
“Indications of much larger
deposits of natural gas have been found along the Great Rift Valley stretching
as far south as Uganda, and exploration is underway in this area,” Shagi said.
Russian company GBP Global
Resources, which was granted the concession in 2014, is currently exploring
natural gas and oil reserves along the Ethiopian Rift valley area. Revenue will
be shared between the company and the government if reserves are found.
“Currently eight exploration
companies including from China and Russia are engaging in exploration and
development of natural gas throughout the country,” he said.
The Midroc Group, a company owned
by the Saudi businessman Al-Amoudi, is developing gold in Southern Ethiopia.
The miner Alana Potash, acquired by Israel Chemicals in March 2015, is working
on the massive deposits of potash in northeastern Ethiopia, Bekele said.
Ethiopia is developing its gem
stone industry. According to the minister, small-scale traditional miners and
middle men are earning about $25 million annually from gem stones that are to
be found in abundance in many areas in the country.
“This can be increased tenfold if
we transfer gem stone extraction to the mainstream mining sector,” Shagi said.
“That is why we have recently put in place a Gemology Institute.”
According to Bekele, only 350,000
square kilometers (135,135 square miles) in total have been studied using
seismic techniques for reserves. Ethiopia covers a total of 1,100,000 square
kilometres (420,000 sq mi).
“Exploration should be
intensified covering an expanded study area,” Bekele said; satellite images and
surveys on the ground show Ethiopia holding immense resources under the
surface.
Source: AA
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