Mining in Ethiopia

Mining is important to the economy of Ethiopia as a diversification from agriculture. Currently, mining comprises only 1% of GDP. Gold, gemstones (diamonds and sapphires), and industrial minerals are important commodities for the country's export-oriented growth strategy.Tantalum mining has also been profitable. It was reported that in the late 1980s, the mineral industry lacked importance given that it contributed less than 0.2 percent of Ethiopia's GDP. Mining for gold is a key development sector in the country. Gold export, which was just US$5 million in 2001, has recorded a large increase to US$602 million in 2012.

The Ethiopian Geological Survey of the Ministry of Mines and Energy (MME) with assistance from UNDP and private companies have assessed the mineral and petroleum resources of Ethiopia. The resources discovered in different regions of the country are mainly gold, tantalum, phosphorus, iron, salt, potash, soda ash, gemstones, coal, geothermal and natural gas, apart from many industrial and construction materials. Other mineral resources are platinum, niobium, copper, nickel, manganese and molybdenum; marble is found extensively in most parts of the country.

Gold has been exploited since ancient times. Large ore based gold mines are the Lega Dembi (the largest mine in the Sidamo province of southern Ethiopia) and Sakaro, which have been mined by private companies; the amount of gold produced by these mines is reported to be about 5 tons per year. In the Western and Northern Greenstone Belts of the country (finest mining reserve in gold mining), orogenic mines have been located; also discovered in this area are ores of the volcanogenic massive sulfide (VMS). Tantalum is mined at the Kenticha Tantalite mining. It is found in the pegmatitic rocks of the Southern Greenstone Belt. Tantalum is used in making all electronic devices such as mobile phones, cameras, computers and so forth; and its mining programme is the sixth largest in the world. Kenticha mines has resources to the extent of 9,000 tonnes of processed potash which could be extracted over the next 15 years. This mine also produces quartz, feldspar, kaolin and dolomite used in industries. The gas fields are located in the southeastern part of the country at Calub, Hilala and Genale gas fields in the Ogaden Basin. The gas resources potential of these fields have been assessed as 4.6 Trillion Cubic Feet (TCF).Precambrian to Recent period rock formations are found suitable for use in construction and in industrial use.

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