During Growth and Transformation Plan (GTP I) period, the focus of the mineral sector was to create conducive environment for the sector and increase its economic contribution to the country’s overall development through strengthening the generation and dissemination of basic geoscience and mineral exploration information for investment promotion and expansion, especially to the private sector.
In line with this, thus, basic geoscience mapping coverage (at scale of 1:250,000) was increased from 34 percent in 2009/10 to 63 percent by 2014/15. Geological mapping coverage, simultaneously, increased from 51 to 82.4 percent in the same period. Overall, during the five years of GTP I implementation, about 2.62 billion USD was generated from minerals exported by different companies and artisanal miners. Moreover, a number of trainings have been offered focusing on improved mining techniques, supply of modern equipment, environmental conservation and marketing to increase production and productivity of artisanal miners. Concurrently, to economically empower artisanal miners including women, the government provided the desired support in organizing operators into mining cooperatives, and micro and small enterprises.
The actions have expanded the employment opportunities in the sector, and improved earnings of artisanal miners. Currently, the Geological Survey of Ethiopia (GSE) an organization responsible to undertake researches, identify minerals potential spots and provide information on minerals for investors and other customers, has set plan to identify 30 new mineral potentials.
Approached by The Ethiopian Herald, GSE Public Relations Director Tamiru Mersha said that in the last budget year GSE identified 24 hot mining opportunities throughout the country. Currently, the country has managed to tap the sector potential through increasing the involvement of the private investors, he added As to him, the capacity of GSE to undertake mineral potential spots is increasing from time to time following the application of latest technologies. As the country is on a transformation period from agriculture to industry led economy, the mining sector is expected to contribute more through supplying substantial amount of industry raw materials.
“Ethiopia is rich in geothermal energy, iron, gold, gypsum, stone and other natural resources. Its abundant minerals can be used as inputs to the construction and industrial sectors, add greater value to expedite the construction sector and save foreign exchange. Thus, the country looks forward for energetic investors to join and invest in the sector.”
Identification of gold, industrial and construction input minerals are priorities of Geological Survey of Ethiopia. Tapping the untapped mineral resource and developing them requires relentless efforts of the government and all concerned bodies, he underlined. “Prioritizing potential areas development, ensuring reliable information to investors and utilizing latest technologies are fundamental to expedite nation’s industrialization endeavors.” While Tigray and Benishangul Gumuz are potential areas for gold mining and extraction, the Ethiopian Rift Valley, specifically, Afar State is potential spot for geothermal energy, he noted.
As geothermal energy is the other major potential of the Ethiopian Rift Valley areas in which GSE is undertaking site identification for further processes, the government is working to generate more than 10,000 MW. Thus, in the efforts to tap the potential of the country’s mineral potential, reforming and supporting the sector with latest technologies is important, he emphasized. Information from the Ministry of Mining and Petroleum indicated that in the last budget year, the country targeting to earn 351.49 million Birr, it has earned 113.57 million Birr from minerals export.
Plan and Inspection Director at the Ministry Geremew Negasa said that currently, the Ministry is working with the Government of Canada signing a 15 million USD project agreement. Extensive and thorough discussion was also made on extraction and development other minerals to augment sector’s contribution to the national economy.
Value addition on minerals export is also given due attention by the Ministry in order to gain substantial foreign exchange from the sector, he indicated. As to him, in the past, gold was the main [95 percent] source of foreign exchange in the sector. If the sector is properly developed, it has a potential to create job opportunities for the youths. Thus, more works are ahead to promote and increase sector’s contribution to the economy and create massive job opportunity for millions.
The Ethiopian Herald February 27, 2019
BY TEWODROS KASSA
