BY BACHA ZEWDIE
The Amhara Regional Mineral Resources Development Bureau recently held a mineral investment development campaign in Bahirdar in collaboration with the Ministry of Mines under the theme “Minerals are new hope for our region”. In the movement, the entities engaged in different sectors of mineral development participated.
Minister of Mines, Engineer Takele Umma, and head of the Amhara Region, Dr. Yelikal Kefale, along with bodies who govern the sector were presented. Due to the outbreak of the COVID-19 virus and the unrest in northern Ethiopia, such forums and movements have not been held for a long time. This has been the reason for the sector to slow down even more.
The war that took place in the northern part of Ethiopia has put a lot of pressure on the activities of the mining sector, which directly or indirectly benefited from the sector and contributed to the country’s economic growth. In particular, the location of major mineral resources in the Amhara region is in a war zone, making the problem worse.
By reviving this stagnant mining development, the mineral wealth of the country should be utilized through such platforms in the efforts being made to create an invincible Ethiopia by moving in different sectors as a country. The platform is an alternative solution to encourage those working in the sector and to attract new investments.
On the stage of the Mineral Investment Development Movement, types of minerals used for the industry and the construction sector as well as for jewelry were presented for display and for new investment. In this program, which included a discussion forum, opinions were circulated that would help the sector achieve better results in the country’s economic development. Through this, different ideas regarding good performances and gaps identified in the sector were raised.
Among the suggestions raised is an exchange performed by mineral smugglers continued to be a bottleneck in the sector, and it was pointed out that lack of control and monitoring is the root cause of the problem.
Opal is mentioned among the precious minerals found in the region because of its high price and its vast popularity. Opal mining in Ethiopia is widely found in the Amhara region, especially in the Delanta district. It has also become identity of the area.
An individual who brought up opal mine in the forum said remorsefully that the opal mine, which could have a great role in the development of the country’s economy by generating income, is not even changing lives of the communities living nearby. He mentioned that the reason for this is lack of a strong operational system to prevent illegal mining transactions.
Complaints, frustrations and concerns raised by the individual and other forum participants alike are common. The problem has persisted to the extent it seems that those involved in illegal activities have been given green light.
Comments presented on the movement show that the question why is it not possible to resolve the grievances of individuals and associations continues to be a discussion agenda even today.
While explaining about the ideas raised by the participants in the forum and the general program of the movement, Haile Abebe, Head of the Amhara Region Mineral Resources Bureau said that, Opal is being illegally exported from the country. The Chinese and Indians who are engaged in the field are doing this. This happened because the government did not pay due attention to the sector.
Regarding their plan ahead, Haile mentioned that questions and comments as well as tax-free investment incentives; infrastructure development and other ideas that can encourage development have been raised and in response, he said the comments raised are relevant. The opal mineral in Ethiopia is a globally recognized brand. However, the sector’s vulnerability to illegal activities has undermined the country’s benefits.
In the last fiscal year, the region earned about seven million Dollar from opal development. Due to the amount of mineral resources in the region, it is expected to generate more income. It is an issue that has been given attention at the regional and national levels to fill such a gap.
Structural support to the sector has been among the efforts made in the past few years. A system has been developed for districts to provide close monitoring and support. The system is considered as one solution to prevent illegality. A task force involving the security force has been established to conduct monitoring and control at the zone, district and regional levels. The task force needs to be strengthened. In addition, there should be mineral trading centers in selected districts. Movement has been started to implement this.
The movement program is aimed at strengthening investment with a view to future achievements, as well as strengthening the development work in addition to rehabilitating the war affected areas of the region. Just as efforts are being made to achieve success in agriculture and other development sectors nationally, mining development is also being done by stimulating the stakeholders to contribute to the regional economy.
The bureau head explained that it is a program to create awareness about the potential of mineral resources available in the region; the importance that the sector can bring if it is used; the challenges and favorable conditions in the sector; how to overcome the challenges and the activities that need to be done in the future to enhance the positive aspects.
According to him, about 40 types of minerals, divided into five sectors, which are used for industry, construction and jewelry have been identified in the region through research. Among them, he pointed out that a large amount of lithium, which is used for car battery input, is found in the Wolo area. He further explained that one ton of lithium raw ore worth 17 thousand Dollar in the current international market.
He also announced that there is also cobalt ore used for airplanes in the region of which one ton raw ore sells for 51 thousand Dollars. There is also a mineral with huge economic benefit that can be used as input for different firms. Lack of understanding in the sector regarding international and domestic market situation as well as location of the mineral is the problem, he said.
According to him, in addition to making it possible to overcome such gaps, the movement program has also made an effort to attract investment by promoting the types of minerals available in the region and their locations. In addition to exploring the gaps in the sector, the movement platform held by organizing exhibition and discussion together, was successful in its purpose as it praised the government’s recent attention to the sector and conveyed a message to continue it.
The presence of some areas of the region in the war zone is bound to directly or indirectly affect the sector. In response to the question whether the risk of impact on the movement intended to attract investment is the same, he said that most of the mine sites are exterior to the war zone, so it is not a threat. For example, an investor who wants to build a cement factory can do in the Abay Valley; an investor who wants to engage in coal mining can find safe areas in Chilga, Ambasel, Debrelias, Ankober, and gold minerals in the Weberma area.
Because of these areas were mentioned on the movement platform, many of the participants showed interest. In particular, there have been requests for investment in coal development. It has been identified in the study that around 3.9 million tons of coal reserves can be found in Chilga area. Licenses have been given to a number of developers of coal, and among them, one developer is in the process of carrying out construction at a cost of 565 million Dollar in the Ambasal area.
According to Haile, the government’s direction of using local raw materials to replace the imported coal with high foreign currency will encourage those engaged in different mining sectors. He also mentioned the activity started in the development of coal which is used as an input for the construction sector and cement producing industries.
Asked about the criticisms of some economists who said that the organization of professionals and offices should be strong in the rural areas where the mining development is carried out, Haile said that, the favorable conditions were created for the top management who controls the work. He added that the gaps that were observed in the mining sector starts from the policy that has lowered the attitude towards the sector. It is impossible to build an institution unless the work is supported by policy. Amhara region can be taken as an example here. The sector has been made to work once under agriculture and other times under the governance of other institutions. There is no structure in zone and district. Instead of thinking that mining is the way to prosperity, it was a situation of taking mining as a source of conflict and anger. As a result, it did not receive attention from top-down management.
But now, the procedure has changed. He explained that following the national reform, operations and organizations have been changed, the regional mining agency has been organized at the office level and brought into the cabinet structure; zones have been converted into departments under the same cabinet; and districts are being organized to serve as mining offices in selected districts.
Haile said that, works will continue to be effective by strengthening the activities started with the new organization. He pointed out that the movement platform will continue with different content and based on the international mineral and technology event held at the national level from November 10, it will be held in Bahirdar city from November 19, 2022.
Minister of Mines, Engineer Takele Umma, who attended the Mineral Investment Movement Forum said; “Ethiopia can grow and prosper in the mining sector if we believe that the minerals in the country belong to Ethiopia.”
Head of Government of the Amhara Region Dr. Yelkal Kefale, on his part, confirmed that the region is ready to support the mining development by solving operational obstacles. He also called on investors to invest in the sector in order to turn the mineral wealth in the region into development.
THE ETHIOPIAN HERALD THURSDAY 10 NOVEMBER 2022
