Afar’s Mineral Industry Grapples With Data, Legal And Governance Gaps Amid License Revocations

Ethiopia’s mineral-rich Afar Regional State is facing mounting investment and governance risks as data gaps and regulatory bottlenecks threaten to stall development of its vast resource base, according to a new report obtained by The Reporter.

The Afar Mining Development Corporation (AMDC) warns that, despite proven deposits of over 24 minerals—including potash, lithium brine, gold, copper, and salt—the region still lacks comprehensive geological mapping, reserve estimates, and quality assessments.

“The absence of organized and reliable geoscientific data makes it difficult for both government and investors to plan and develop the sector effectively,” the AMDC report stated, calling for urgent reforms to attract responsible investors.

The presentation highlights persistent gaps in geodata, skilled manpower, and modern exploration technology, as well as weak legal and regulatory frameworks that create inconsistencies in licensing and enforcement.

“The region must work to formalize community participation and ensure benefit-sharing,” the report stressed, urging an overhaul of mining laws and operational systems to improve security and investor confidence.

While the Corporation has secured 30,000 square meters of land in Afdera for industrial-scale salt production and signed partnership agreements with domestic and foreign firms, officials warn such projects will only succeed if governance issues are addressed.

“It is critical to align community, investor, and government interests through clear policy, strong enforcement, and investment security guarantees,” the report concluded.

The call for reform comes as the Ministry of Mines continues a sweeping crackdown on potash miners that has seen three companies lose their licenses in 2025.

EthioPotash B.V., formerly Yara Dallol, was the last to have its concession in Dallul Woreda revoked in March 2025 after failing to commence production within the eight-year window granted under its 2017 license agreement.

“Our office has repeatedly extended the development period to compensate for time wasted due to force majeure. However, your company has not conducted mining development activity and has failed to commence commercial production,” reads a notice signed by Million Mathiwos, state minister of Mines.

EthioPotash followed Circum Minerals and United Potash, whose licenses were also canceled this year over production failures. The revocations are part of a push to clean up idle concessions and accelerate output from one of the country’s most strategic mineral assets, according to federal officials.