The latest quarterly performance report from the Ministry of Mines reveals a widening gap between the country’s struggling medium- and large-scale gold companies and a booming artisanal sector, raising urgent questions about the structure and the future of gold production.
The report presented to members of Parliament on Monday indicates that several gold producers delivered “very low” outputs, despite receiving operational support and policy attention. Officials told MPs that intensive follow-up work with large-scale producers did not yield the results they had hoped for.
Some of these producers underperformed dramatically.
From The Reporter Magazine
YMG, whose gold processing plant in Shakiso was inaugurated in the presence of the Prime Minister in December 2024, managed to produce less than 500 grams of gold over the first three months of the fiscal year, according to the Ministry.
Ezana, part of the Endowment Fund for the Rehabilitation of Tigray (EFFORT), produced a little more than 41 kilograms over the period, while two other large-scale firms reported a combined 22 kilograms in production, according to mining officials.
The poor performance contrasts with the country’s gold export earnings, which registered at USD 3.5 billion last year, overtaking coffee as the most valuable export commodity for the first time.
From The Reporter Magazine
Large-scale producers accounted for only a small portion of last year’s record-breaking earnings, and officials say their production over the first quarter remained far below what is needed for export earnings and macroeconomic stability.
On the other hand, artisanal mining has emerged as the country’s dominant gold source.
Contrary to the sluggish industrial producers, Ethiopia’s artisanal mining ecosystem is performing exceptionally. Over the past three months the Ministry reports that artisanal miners exceeded expectations, although officials did not provide figures to illustrate the claim.
They told MPs they expect artisanal mining to remain the nation’s primary gold source for the next five years. The report implied structural dependency as Ethiopia’s gold economy is increasingly tied to artisanal miners at a moment when industrial mining remains far below potential.
Unlike the gold sector’s buoyant artisanal output, Ethiopia’s gemstone trade remains underdeveloped. The Ministry characterized the sector’s progress as limited. It further noted that gemstone exports fell short of plans, yielding only 93 percent of targeted foreign exchange earnings.
Despite Ethiopia’s global reputation for opals and emerging potential in emeralds and garnet, the sector remains constrained by pricing distortions, weak supply chains, and low industrial processing capacity.
Officials say several new strategies for limestone, clay, construction minerals and gemstone mining have been drafted and presented to regional administrations, and technically approved. Still, they admit the implementation gap remains significant.
“In seminars and workshops, the question of how we can put these strategies on the ground is constantly raised,” said one official.
The admission marked a central concern about Ethiopia’s mining sector producing new policy frameworks faster than institutions can apply them.
The Ministry also acknowledged operational and institutional constraints within its own system.
“We are working to make our own ministry more competent and one that can provide full facilities,” said an official.
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