It is known that to solve the shortage of iron supply, which is one of the important inputs for the construction sector, the government has set a direction to supply the resources needed for the metal industries from within the country. It is also remembered that collecting pieces of scrap metal from different areas and providing to the industries was started. In this way, it is indicated that the task of providing the resource to the steel producing industries will continue for two years. This was a step taken temporarily to solve the problem.
At the same time, the government is subsidizing the import of soil inputs for the agricultural sector. For example, 21 billion Birr has been allocated for the procurement of soil fertilizer for the current production season. However, following the war between Russia and Ukraine, which supply fertilizer to the world, the procurement process has been facing challenges. This situation has caused delay in the efforts to deliver fertilizer to the farmers.
Besides, the issue of fertilizer factory has become a hot topic. Though the country is blessed with resources necessary for fertilizer production, it spends a lot of foreign currency for fertilizer importation.
Questions are being raised as to why no attention has been paid to building a fertilizer factory in the country; a similar question was asked at the recently held meeting of the House of People’s Representatives and explained by Prime Minister Abiy Ahmed (PhD).
It has been said that the mineral resources for these huge sectors and other industries are available in the country. But, it is impossible to say that the mining sector has been developed in the way that the country needs due to various reasons.
Following the government’s attention to the mining sub-economy, large-scale activities have been carried out in the sector in the last few years. Regions have been engaged in the research and exploration of mineral resources that enable the production of fertilizers and steel in the country.
Data indicates that research and efforts on the resources are still being strengthened. According to Tamrat Demisse, Deputy Head of the Mineral Resource Development Bureau of Amhara region, in the completed fiscal year, research work focused on gold and precious gemstones was carried out. The construction of three cement factories is going on in the region, and investors are preparing to set up five factories in Wollo.
As he said, 26 mineral research studies in the region’s 13 zones, 22 districts, three metropolitan cities and one medium-sized city are underway in this fiscal year for those who need mineral raw materials, including precious jewelry and gold minerals, for construction and industry. To this end, 73 million Birr required for the research work has been submitted to the regional government.
According to Tamrat, attention has been paid to search for better reserves and quality of iron ore in the region. In the past, there was not enough investment activity in iron ore exploration and development. Although the reasons for lack of interest are different, it is mentioned that the infrastructure and the investment required by the sector are high. Currently, the office is planning to move better in the 2023/24 fiscal year by focusing on identifying the areas where there is sufficient and quality stock.
Other agricultural mineral raw materials such as limestone and potash are included in the study plan. The presence of potash in the region has not yet been confirmed. However, minerals are available to treat soil acidity.
A development company has started working in Dejen area to produce limestone and supply it to the consumer. The office will encourage interested investors in preparing lime. The office works side-by-side to identify the quality and quantity of mineral used for agricultural input and provides it to the developer.
As to Tamrat, research activities in geological survey are carried out in three ways. One is geological research to prepare a map by studying the geological formation of the area and what can be found in the area. The second stage is studying the geochemistry or the internal part of the mineral, i.e. the amount of chemicals. Thirdly, it is possible to include the study of geophysics or the possibility of using different technologies to determine the amount of storage. Then it is sent to the laboratory. 70 to 80 percent of a mineral’s content can be determined by testing in a laboratory.
Tamrat explained that since the region does not have an organized laboratory, the testing will be done by the Ministry of Mines. since the existing laboratory is not enough even as a country, only one, they face challenges to know the results quickly due to the work pressure and go to the next step and to make it convenient for the investors who work in the sector. However, he stated that efforts are being made to strengthen research activities.
He pointed out that the office has signed a memorandum of understanding with 10 universities in the Amhara region to study the amount of mineral resources and the areas where they are located and to gather information. One of the positive aspects of the office is the involvement of partners in the research work. It is known that there are various minerals in the region. There is a need to analyze the existing situation in terms of stock quantity and quality, and work is being done accordingly.
He also announced that efforts are being made by the office by asking the government to pay attention to the issue of the laboratory, which is much needed to confirm the quantity and quality of mineral deposits, to support projects and to make resource supplies convenient.
At the same time, in order to increase the cooperation of partners, in general, efforts are being made to create awareness by making the mining issue an agenda. In addition, based on the study, the work of making the stakeholders, including the regional government, aware of possible natural disasters and taking measures to create a favorable environment is being carried out by the office, he stated.
The work done by the office via involving partners in research works is also mentioned among its strong points. By strengthening the activities they have been working on from creating an understanding of what minerals are to researching where the resources are located, the office has made comprehensive preparations for better results in the 2023/24 fiscal year.
The Southern Region Minerals and Energy Agency also stated that its focus is to conduct research in collaboration with universities and stakeholders. For this, Head of the Agency’s mining sector, Eyasu Mamo told media that it is in the preparation phase for the 2023/24 fiscal year.
According to his explanation, about seven projects have been designed in the region. Studies have been done. When the results of the study are summarized, efforts will be made to make mining operations more comfortable in addition to those already in use.
Eyasu mentioned that the region has been working on coal in order to achieve the goal set by the government to avoid spending foreign currency on purchases by substituting domestic coal resources for power input for manufacturing industries.
He announced that one of the things that will be done this summer is identifying the areas where coal reserves are located and making them convenient for the developers. Developers are working hard during the summer season to be able to work at their full capacity and to complete the work they are doing based on studies and ready for work in time.
According to Eyasu, another area of focus for the region is iron ore. Studies show that there are iron reserves in the region. Therefore, this is the period when the developers have the opportunity to develop the minerals identified in the study on a large scale.
There are all kinds of minerals in the region, and the types of minerals that are being identified in the process of research, whether in terms of quantity or content, are used for industrial inputs, especially construction finishing materials such as ceramics.
He stated that there are companies that have taken license to carry out the development and they are in the process of research. He also pointed out that there are about 16 companies that develop “dolomite” used for paint factories and supply it to the industry.
Eyasu further said that the work of identifying the minerals through research will be strengthened so that the companies can enter into major mineral developments. This is beneficial for the strengthening of the development of the jewelry minerals that the young people organized by the association make from precious stones. He indicated that work will be done to increase the development in general through research.
BY BACHA ZEWDIE
The Ethiopian Herald July 30/2023
