One of the areas known for coal production is the new region of Southwest Ethiopia. Data indicate that the region is home to coal products capable of generating large amounts of energy. Especially Dauro, Konta and Kefa zones of the region are known for their coal production.
Mengesha Medalcho, Deputy Director General and Head of the Mining Sector of the South West Ethiopian People’s Region Mining and Energy Development Agency, told the Ethiopian Press Agency about the coal reserves in the region, and said that research is needed to find out its potential.
As to him, in the present case, the coal-bearing indicator areas of the region are geographically separated. The work being done is to mine the ore that is on the surface and partially on the surface.
As the studies show, it is three to four meters deep to find coal; in some areas, there are three levels of coal deposits up to 22 meters deep. He then mentioned that there are indications that it may exist at a deeper level. A study was conducted on the identified locations based on the indicators and the study will continue in a wider range.
Based on this study, 15 small-scale producers and three high-level producers, a total of 18 producers, have obtained licenses and started working to produce coal. It was planned to produce 748,024 tons of coal from the region in the 2022/23 fiscal year. It was possible to produce 209,398 tons.
Though many problems can be cited as a reason, the performance is miner in terms of the plan. In terms of income, it was planned to earn 30 million Birr and was able to earn 29.3 million Birr, he said.
In view of the employment opportunities, the plan was to create job for 600 citizens only through coal production, and it has been possible to create permanent and temporary employment opportunities for 525 citizens.
He said that according to the procedure laid down in the guidelines of the region’s mining sector regarding job creation, every manufacturer has to allocate 10% of their product sales income to create job opportunities for unemployed citizens. In the future, if these producers come to work with their full capacity, the sector will generate good capital and better work will be done.
The official said that it is impossible to say that coal production is effective in the process underway so far. The demand and the market conditions are not compatible. He also mentioned that there are investors who want to engage in the sector but the existing market is not reliable. It is very difficult for the investors to break into the market and be successful in the sector.
If there is a situation where the market and the producer will be connected, it would be possible to avoid coal importation with high foreign exchange. The current market bottleneck is dangerous if not resolved, he said.
As to him, it is difficult for producers to supply their products directly to factories. The problem is the presence of brokers between the manufacturer and the factory. The producers also say that there is a situation where the quality of the product will be low even after supplying the ore to the factory. There is also a situation where the product is said to have not been accepted by the factory and they take the ore back. Besides, abnormal relationship is created to gain improper benefit and the sector is victim of unhealthy process.
The problems are raised widely in regular consultation forums so that new licenses have been suspended until these problems are resolved and a secure market is established. However, there is a situation where the existing producers renew their licenses and continue to produce.
While talking about the problems that arise in connection with this, he mentioned that the production is widespread in the Dauro and Konta zones, and the coal production inspection work is being done in Kefam zone.
He also mentioned that infrastructure problems such as lack of road are widespread in these areas. The asphalt road from Tercha center to Sodo has been cut and the road is closed and it is difficult for cargo transport. At the same time, the company that is working on the road from Tercha to Jimma has left because of the new road work and the distance of the road. Road breakdowns are said to be difficult for companies transporting coal.
As to him, among the problems raised so far that delayed the work is related to the local community’s benefit. Environmental impacts are not clearly identified and the absence of a legal justification for legal benefits has been hindering operations for some time. In September 2022, after the regulation of the region was issued, it was put into operation in accordance with the procedures and guidelines in order to ensure the benefit of the local community.
In the 2023/24 fiscal year, it is planned to work to strengthen the coal production. A plan has been prepared to gain 500,000 tons of produce in the fiscal year. The producers’ demand for production is higher than the set number, compared to last year’s performance. The work to achieve this year’s plan will continue.
The production process will take place in a manner that suits the needs of the next product seekers and manufacturers. It is essential to establish a procedure that the manufacturer will accept the products unconditionally so that the supplier can produce without any risk. Doing this requires the cooperation of concerned bodies who lead the industry and the stakeholders; otherwise it will not be possible to achieve what is planned.
He mentioned that the area where coal is produced is in the fields of farmers and people’s residences. In this regard, holes made here and there create various environmental damages and causing problems of good governance. Such problems should be solved and is being worked on in coordination with the relevant parties. Likewise, the works to solve the problems raised on the road will be done with the relevant parties.
The deputy general director further said that if the problems raised in the sector are solved, it is possible to produce better products. Mainly the problems related to the market should be solved and there should be a reliable market. As a result, out of the 15 existing manufacturers, four are able to cope with the current market conditions and are working effectively because they have a direct market connection.
At present, the production of top producers who are licensed to produce more than 20 thousand tons per year is not more than one thousand tons. If these producers are monitored by the Federal Ministry of Mines and the region to produce at full capacity, better results can be achieved than the current level.
There are also problems regarding coal from a consumers’ perspective. Coal with a power generation capacity of 3,000 calories to 6,000 calories is required in different factories. Coal products with lower amounts of up to 3,000 calories are used to generate energy in textile, paint, and other industries; Coals with higher value of 6,000 calories and above are desirable for cement plant.
The official pointed out that coal production may be reduced in terms of production process to meet the standard. Mixing things like ash, stone and other mixed materials together can put adverse impact on the quality. In the process of finding a solution for this, the process of installing a processing machine to separate such things in Dauro Zone is being completed by Ethio Mining Corporation.
He also said that there are encouraging works related to quality. The efficiency of the previously installed machine will be seen in order to facilitate the production of coal that meets the market demand and quality standards for the foreign and domestic markets. At the same time, there are works to be done with the Ministry of Mines to solve the market and quality problems.
The official pointed out that though the work of substituting coal production in the country has started recently, it has created a revival now. He thinks that as far as the work is underway via using the favorable conditions, there will be better results in the future.
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD FRIDAY 6 OCTOBER 2023
