BY DANIEL ALEMAYEHU
The continent of Africa is endowed with numerous natural resources that the world can rely on. Most of the raw materials that the world has been using are from Africa. In this regard, it is proven that the continent has not been using its maximum potential to explore its natural resources to the fullest and make the best out of them.
In the present climate, the government of Ethiopia has identified sectors that believed to have great impact on the overall economic progress of the nation. Agriculture, tourism, industry, science and technology, and mining are the selected sectors that the government plans to seek out better achievements. It is the fact that those sectors are the focal points and part of the ten year development plan that the nation designs to implement using its homegrown economic reform agenda.
Regarding the usage of natural resources, especially the mining sector, the way how Ethiopia has been handling its resources has shown tangible progress. The government has given due attention to exploit more benefits from the untapped natural resources that the country is inundated with. It is true that exploiting natural resources and minerals costs much.
Metallic minerals like gold, raw materials for fertilizers, ceramics, glass and cement, gemstones such as sapphires, energy minerals, and natural gas are some of the minerals and energy sources that the nation is blessed with. With those natural resources, both local and international investors have shown strong desire to invest in the country.
It is important to remember that the nation contains excessive amount of natural resources throughout its width and breadth. While discussing about abundance of the country’s surface and underground resources, Melaku Alebel, Minister of Industry, once said,“… it is hard for the nation to be poor than to be rich.” He also stressed that to get the best out of the resources that exist in different sectors; it needs better leadership and hard work in collaboration with every stakeholder.
Months ago, Ethiopia has received the first certificate for having natural gas and oil reserves. Seven trillion cubic feet of natural gas has been discovered in Ogaden area of Somali Regional State. It is one of the highest natural gas reserves in the world. On the occasion, Minister of Mines, Eng. Takele Uma stated that from now on, the country has officially received a certificate for gas reserves.
Even recently, it is stated that nation’s immense gold reserves in various parts of the country has been explored that open doors for investors to invest on country’s gold mines. In this regard, in the coming five years, Ministry of Mines has planned to extract and produce thousands of kilograms of gold and other minerals.
Having stayed with the Ethiopian Press Agency (EPA), State Minister of Mines, Million Mathewos disclosed some of the projects that the Ministry has planned to carry out in the coming few years. The State Minister further said that there are a number of companies that are interested in investing on the mining sectors, and they are about to start operating in the coming few periods of time.
To illustrate, a company called Ethio Mines is going to be operational within three months in Gmabella. Not only that, Kurmuk Gold Company that is expected to be the largest gold producer in the country has identified 140 thousand kilograms of gold to be produced in Benishangul Gumuz and the production will be started within the next five years.
By the same token, after paying a visit to Benishangul Gumuz Regional State, Minister of Mines, Eng. Takele Uma, stated on his social media account, , “One of the indications that our dream of increasing gold production at the level of large scale companies will come true is the construction of the Kurmuk Gold Company, in the region. We get the opportunity today to visit the factory, which is being built with the investment capital of 14 billion Birr.”
The State Minister, on his part, said that a number of high- profile companies that are working on gold mining around the world have been showing their growing desire to invest their asset in gold production here in Ethiopia.
In a similar vein, the State Minister has mentioned about the nation’s gas resource. He affirmed that the country is certified for discovering seven trillion cubic feet of natural gas in Ogaden. “When gas is developed, petrochemicals are also developed and the country’s progress owing to gas and related resources is promising,” he added.
In addition, it is the fact that having natural resources could bring further advantages to the nation if they are explored and produced adequately. In this regard, as to the State Minister, the gas production and development will bring extra benefits to the nation’s economic development. Nation’s soil fertilizer production will be affected positively by the gas development. Accordingly, such benefit will bring a fundamental transformation in the agricultural system of the country.
He further elaborated that Ethiopia has a reserve of more than one billion tons of iron ore. The Ministry identified that there is more than 600 million tons of iron ore found in Sekota, and over 250 million and 80 million tons of steel is discovered in Shire Indasilassie and in Mekaneselam respectively, the State Minister added.
Million also mentioned, “There is a large stock in Wollega, Jimma, Guji, and Borena zones of Oromia region and in the next 10 years of the strategic plan, appropriate utilization of these resources will move Ethiopia to another phase of development.”
Regarding steel production in the country, the State Minister stated that at this time, there are 30 to 40 steel factories that are operating in the country, and these companies, all of them, import basic steel raw materials and sell it again by molding in different shapes.
In a shorter period, according to the plan, it is decided that the government will make those steel companies operational, but in the long run, as to the State Minister; the Ministry aspires to use Ethiopia’s iron ore to the maximum level. As a result, it will profoundly help the nation on building sustainable development.
According to Million, it is confirmed that the country has a reserve of one billion tons of iron ore and certified for discovering seven trillion cubic feet of natural gas. Unfortunately, the Ministry and other stakeholders have effectively studied only 30 % of the total mineral resources that the nation is blessed with.
To conclude what has been said above, most practices of gold mining in Ethiopia have been implemented in the traditional ways. This way of doing business traditionally has pulled the nation down from getting what is expected from the sector so that the government has been taking various actions to change the way of doing business to more advanced and modern ways.
Currently, the government and the Ministry of Mines have given due attention to the sector and bringing investors to invest in the mining sector. Consequently, the government, nowadays, is earning better income from the sector and opens more rooms for investors via creating investor- friendly environment throughout the nation.
The Ethiopian herald January 13/2023
