Etno Mining, YMG halts operations within five months after PM inaugurated them
The decision to float the currency in late July 2024 has directly resulted in a historic leap in the volume of gold making its way into the vaults of the central bank, according to a new Ministry of Mines report.
A total of 22.5 tons of gold was supplied to the National Bank of Ethiopia (NBE) over the past eight months, Habtamu Tegegn, minister of Mines, told Parliament on Thursday. The figure is nearly double the record-high 12 tons registered a decade ago.
“Gold supply skyrocketed immediately following the currency floating. Assuming the trend of the past months continues, we plan to realize over 33 tons of gold by the end of the fiscal year,” the Minister told MPs.
Mineral exports generated close to USD 1.9 billion over the first eight months of the financial year, with gold accounting for the bulk, according to Habtamu.
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He stated that an average of 4.3 tons is supplied to the central bank each month.
“It’s unlike any time in the past,” said the Minister.
However, Habtamu did not detail whether the gold is supplied by artisanal miners of large-scale mining outfits. He told MPs that although three gold mining firms recently went operational, they have been unable to produce at full capacity.
Among them is Etno Mining, which launched its operations in November 2024 at a ceremony attended by the Prime Minister. However, the gold processing plant in Gambella is facing technical problems and has paused production after processing just three kilograms of the mineral, according to Habtamu. Etno Mining is subsidiary of Akobo Minerals. Similarly, YMG, which was inaugurated by the PM in Shakiso in December 2024, has faced production difficulties, according to Habtamu.
The problems are reportedly related to unsuitable plant design.
The Ministry’s report indicates that despite the floating and improved gold supply, the mining sector is still mired in challenges. These include illicit mining, weak regulatory backing, weak institutional support, absence of mining data, and several other issues.
“Institutions in mining are very weak. They lack manpower. But mining is basic for an industrial revolution. We have designed ten initiatives to build up mining institutions. We have worked intensively with the Ministry of Finance. Although the government is not providing funding for capital projects in other sectors, considering the critical situation in the mining sector, it has allocated five billion birr,” said Habtamu.
The Ministry is working with universities to build capacity at regional mining bureaus, and has entered into an agreement with the Information Network Security Administration (INSA) aimed at digitalizing the sector, according to the Minister.
The funding is also being used for exploration works in Sekota (Wello) and parts of southern and eastern Ethiopia in a bid to source critical minerals currently in great global demand, according to Habtamu
He told MPs the construction of a data center slated to aggregate mining data is underway, with plans to sell the data to potential buyers in the future.
“We can’t rely on sparse data collected by artisanal miners,” said Habtamu.
Age-old calls for the establishment of a capable testing facility in the country are finally being addressed through the construction of a sample testing laboratory, according to the Minister. The lab is slated to open over the coming year.
Federal Auditor General Meseret Damte was also present during the parliamentary session. A few months ago, she presented a bleak report on the mining sector, criticizing the Ministry over its poor performance, and rampant mismanagement and corruption.
Minister Habtamu was notably absent when she presented the report to MPs.
On Thursday, while he presented the Ministry’s eight month report, Meseret again raised valid points. She reiterated that Ethiopia’s mining sector is still performing far behind its potential on several parameters.
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