Ethiopia is endowed with potential wealth of the world’s most sought-after precious and ornamental minerals such as opal, emerald, sapphire, ruby, agate and quartz. However, so far, the work done in developing these resources to bring economic benefits is insignificant. In particular, data indicates that efforts to earn foreign currency by developing precious and ornamental minerals, which have been proven by research, are not yielding results.
According to data, a wealth worth about 250 to 300 billion Dollars transacts annually in the field of precious and ornamental minerals. In Ethiopia, it generated 3 to 4 million Dollars until last year. This shows that it is possible to get great achievements if the activities that enable the proper use of the resources that are driving the world economy are done.
However, since the last five years, encouraging changes are being seen due to the government’s attention to the sector. In particular, the work of developing precious and ornamental minerals to be used for economic benefits by exporting them to the foreign market has been strengthened.
Presently, by increasing the value of precious and ornamental minerals to the foreign market, they are being made to bring in foreign currency. However, raw minerals without any value addition still dominate the market. The sector’s five-year foreign market data indicates this. About 95% of the precious and ornamental minerals sent to the foreign market in their raw form during five years. The remaining only 5% are exported value added.
This indicates that the country needs to do a lot to develop its mineral wealth and earn the foreign currency it deserves from the sector. Especially in this digital age, it requires the use of options developed countries used to go the distance they have gone and be competitive at the international level.
The Ethiopian Mining Corporation is one of the institutions engaged in the mining sector and working to promote the country’s mineral wealth. The corporation has been engaged in the sector for the past 80 years. It is working to make Ethiopia’s mineral wealth known to the world and to produce high-quality mineral jewelry at an affordable price.
The Corporation was formerly known as the Ethiopian Mining, Petroleum and Biofuel Corporation; it is a development company that was re-established under Decree No. 462/2020 and changed its name to Ethiopian Mining Corporation. The purpose of its establishment is to directly participate in mining, oil and bio-fuel activities, to enable it to benefit from the country’s natural resources by developing them appropriately.
According to the Acting Director of Ethiopian Mining Corporation, Ahmed Abagisa; Ethiopian Mining Corporation is a public development company engaged in the mining sector. The corporation carries out activities such as exploration and mining, analysis and identification of minerals, marketing and export of precious metals, providing training and consulting for the sector.
Ahmed pointed out that using the long years of experience, the corporation is making Ethiopia’s mineral resources contribute to the country’s economy. In recent times, it has made various changes and is more ready to work in the sector. He stated that Ethiopia is doing many things to fulfill its role so that it can use its mineral wealth. It is working on value addition to increase foreign exchange earnings.
He further stated that efforts are being made to prevent the illegal transfer of minerals by introducing precious and ornamental minerals to the world and offering the minerals through digital market, so that the country can get the foreign currency it deserves.
Ahmed said, “The Corporation has been given the responsibility by the government to do its part in the Ethiopian economy by strengthening it in manpower and material than before.” Though opal has been widely used in mining, he pointed out that efforts are being made to increase the value of others like emerald; sapphire and other precious minerals found in Ethiopia and bring them to the market. Ahmed stated that the corporation has a precious metals enrichment workshop equipped with qualified professionals and necessary machines. The workshop will be used for the production of quality jewelry by molding precious metals. They are in the process of buying a machine to make the jewelry in silver and gold. Many jewelry pieces such as necklaces, bracelets and earrings are being made by carving the minerals. He also explained that they will produce various types of jewelry products plated with gold and silver that can earn foreign currency.
“We are increasing the work done on precious metals by working in different ways and making them be used for different purposes,” the representative director said. Ethiopia has many unknown minerals. Opal is also a recent discovery that hasn’t been around for very long. Therefore, there is a situation where opal can be sold raw and value added. “Precious minerals have a limited share in the country’s economy, so efforts are being made to boost the country’s economy by promoting the minerals,” he said.
Adding value to the minerals and using the digital market are taken as options to increase the foreign exchange. He indicated that they are currently offering precious metals for sale by organizing precious metals shops and keeping them at the head office, Ethiopian Tourist Trade Organization and Ethiopian Airlines’ foreign terminal.
In addition, it is working in coordination with various institutions to provide value added minerals to the local and foreign markets through digital platform. The preparation for selling precious metals in the digital market through Dashen Bank, Eagle Line and Mastercard has been completed.
Ahmed said that concrete works are being done so that they can play a part in the development of the country by promoting precious metals. It is necessary to strengthen and hold on this work. They are preparing to buy various materials and ornaments that can work with gold and silver in an attractive manner. “When we look at the experience of other countries such as India and Turkey, they are known for precious metals, and have gone a long way in the field. Therefore, by importing these materials from these countries, it is possible to be competitive in the world market,” he explained.
When the corporation obtained minerals from small producers engaged in the sector four months ago, it provided training to 34 small associations engaged in precious metals production. The training provided them with an understanding of how the minerals can be processed and converted into the market and how they can be transferred. After the training, a system was set up where they can work with the corporation identifying the types of mines in which the associations will participate, he pointed out.
As he said, at present, the minerals come from various regions of Ethiopia (Tigray, Amhara, Oromia, Benshangul and Gambella regions). Opal is widely produced in the Wolo Delanta area of the Amhara region. The opal producing associations are being extensively trained to sell the mineral to the company with a legal transfer license. When the corporation buys minerals, it is legal. Working with the corporation that works in accordance with the law will prevent the illegality of mining.
Ahmed stated that the minerals are supplied to the local and foreign markets through various shops and digital markets. The country’s foreign exchange will be increased by promoting the country’s minerals in the world market through the digital market. With this, he announced that efforts are being made for the country to earn the foreign currency it deserves from the sector.
He said that many works are being done to provide value added precious metals to the foreign market since it needs a lot of work that includes purchasing necessary materials to be globally competitive in terms of value addition. “Currently, the work being done around precious and ornamental minerals is not said to be fulfilling its role in the economy; it shows that it is growing.” He pointed out that there are still many works to be done in terms of value addition; so many efforts will be made to do it as required.
“Mining is one of the pillars of the economy that ensures the prosperity of our country,” he underlined. He mentioned that the mineral expo organized by the Ministry of Mines last October would allow minerals to be introduced to the world. He also noted that it was an eye-opener for mining to play its part in the country’s economy, to avoid illegality, to do quality mining work, and to do effective work based on research.
Recalling that the corporation was also participating in the expo; he pointed out that it is making extensive efforts to contribute to the development of the country through mining. The results are constantly improving, he noted.
The Acting Director mentioned that there are various challenges that are faced because the mineral exploration and production work is carried out in different places in the country. The challenges faced with peace and tranquility are being gradually solved and fixed, so good conditions are being created that will help the mining industry in the future.
He concluded that the efforts being made for the country to benefit from the sector will continue to be strengthened by taking an active part in extracting and using the mineral resources and other resources that Ethiopia has.
Dyed-Ethiopian-opal-beads
BY BACHA ZEWDIE
THE ETHIOPIAN HERALD THURSDAY 16 MAY 2024
