Ethiopia to increase gold production

The government of Ethiopia has announced plans to increase gold production. Million Mathewos, State Minister of the Ministry of Mines made the announcement and said production will be boosted with the upcoming operation of three new gold mining companies.

These mines are located in the Benishangul, Gambela, and Tigray regions, with the largest in Kurmuk District, Benishangul-Gumuz State, expected to yield around nine tons of gold annually. Once fully operational, these projects will collectively add 10 tons to the country’s yearly gold output, significantly enhancing mineral exports and foreign currency earnings.

Role of gold mining in Ethiopia

Last year, Ethiopia generated $420 million from mineral exports, with gold being the primary contributor. The government projects that with the new mining projects operational, annual earnings from gold could reach around $800 million in the current fiscal year. Additionally, the Gugi Gold Mining Company is undergoing an expansion, and potash mining projects are also being planned for the Afar region. However, the mining sector has faced challenges in recent years due to instability and insecurity, affecting foreign currency earnings.

In today’s Ethiopia, gold is the mineral that is the biggest hard currency earner for the country. Although Ethiopia exports other minerals including sapphire, opal, tantalum, emerald, gemstones, and marble, gold has become a focus for Ethiopia a priority sector to transform the country’s economy. The government of Ethiopia wants to use the sector as an engine of growth to propel the country’s economic growth. It hopes to create one million jobs in the sector and generate over a billion dollar annual export revenue.