MIDROC Execs Applaud Cyanide Certificate As UN Scrutinizes Toxic Waste In Lege Dembi

Two contradictory reports surrounding toxic mining pollution at MIDROC Gold’s Lege Dembi site have placed the controversial commercial-scale gold extraction project under renewed scrutiny.

The International Cyanide Management Institute (ICMI), a non-profit that administers a voluntary international code for the safe use of cyanide in gold and silver mining, certified MIDROC’s production site in Lege Dembi, Oromia, as compliant with the international cyanide management code a few weeks ago.

Meanwhile, officials from the Ministry of Justice told a UN committee that residents in the area of the mine have been compensated for environmental damage and health impacts “regardless of the fact that the exact cause for the damage has not been clearly established and attributed to the company [MIDROC].”

MIDROC became signatory to the Cyanide Code in February 2024. Last August, a South Africa-based auditor, Eagle Environmental, conducted a week-long assessment of the mine in Lege Dembi and concluded that MIDROC is in full compliance of the Cyanide Code. Last month, ICMI granted MIDROC its first-ever certification, despite the mine having been in operation for decades.

On Thursday, ICMI directors, managers of Eagle Environmental, government officials, and MIDROC executives gathered at the Sheraton Addis to commemorate the certification, which is purported to be only the first of its kind in Ethiopia.

Representatives from dozens of countries and international companies also attended a two-day workshop on safe cyanide use in Addis Ababa this week.

Congratulating Midroc, Mines Minister Habtamu Tegegne called on other mining outfits in Ethiopia to follow its lead in safe cyanide utilization, saying it is “crucial to ensure ensure ensured safety and the well-being of local communities.”

The report from auditors at Eagle Environmental illustrated that MIDROC sources solid sodium cyanide from three suppliers in Australia, and provided an overview of how the company stocks, uses, and discharges the highly toxic, water-soluble chemical.

The auditors report their August inspection found no wildlife mortality associated with cyanide, and declared surface water in the vicinity of the mine as having a cyanide concentration far lower than the 0.07 mg/l limit enforced by regulatory authorities.

The Minister lauded the findings and told attendees they represent a turning point from previous experiences in Lege Dembi, referring to a three-year period when the mine was shuttered following protests about pollution and health impacts.

“There were a lot of concerns raised about environmental issues in Lege Dembi. There were issues with MIDROC. We’ve faced problems in Lege Dembi before, but we’ve learned from the problems and come up with a solution,” said Habtamu. “This certificate shows that MIDROC Lege Dembi is safe environmentally, safe for its employees and the local community.”

The mine in Oromia’s Guji Zone has also been on the agenda in Geneva in recent weeks. The UN Committee on the Rights of the Child met this week to assess the situation of children’s rights in Ethiopia, including the health rights of children living near the Lege Dembi mine.

A team composed of dozens of officials drawn from the Ministry of Justice and Ethiopia’s representatives at the UN presented a report to the Committee during its 100th session.

One of several questions raised by the UN committee members was the issue of environmental damage induced by chemicals discharged by MIDROC and the impacts on children and the local community.

In a written reply to the UN, the Ethiopian team stated: “In regard to the Lege Dembi gold mine, the negative impact of the mining operation on the communities has been a subject of thorough investigation and appropriate mitigation measures have been taken to make good the damage. Moreover, the developer of the Lege Dembi gold mine has effected compensation for affected members of the community regardless of the fact that the exact cause for the damage has not been clearly established and attributed to the company.”

MIDROC’s management team, including Gadisa Hirpha, a corporate director who was responsible for the ICMI audit, declined to respond to questions about the report submitted to the UN.

The audit report approved by ICMI offers a glimpse into the compensation mentioned in the report, and an overview of the controversies that have surrounded the Lege Dembi mine over the past decade.

In 2018, the government suspended the MIDROC Lege Dembi license in light of public uproar over environmental damage and health impacts. At the time, studies and reports from rights groups indicated the presence of worrying levels of mercury and cyanide near the mine, impacting newborn children, plants, and livestock.

The government pledged it would not permit the company to resume mining until the toxic waste issue was resolved.

The report from Eagle Environmental reveals that in March 2018, just days before Prime Minister Abiy Ahmed (PhD) assumed office, the Ministry of Mines and MIDROC Gold signed an agreement for the renewal of the Lege Dembi license.

The terms of the agreement required MIDROC Gold to undertake cyanide-related decommissioning activities that at the time were expected to cost 98 million Birr. The money for the decommissioning, according to the agreement, was to be deposited by MIDROC into a blocked account at a state-owned bank and released in phases based on progress.

The firm was also obliged to pay compensation to local communities.

Currently, the blocked account is with Dashen Bank (affiliated with MIDROC founder and major shareholder Sheikh Mohammed Al-Amoudi) and, as of August 2025, contained an amount of 92 million Birr, according to the audit report.

Further, it does not indicate whether any compensation has actually been disbursed or clarify who has access to the blocked account.

Financial Audit

The latest available MIRDOC Gold Mine PLC annual financial report is for the year ended July 2024, and was audited by AA Bromhead Certified Audit Firm.

It reveals 10.3 billion Birr in revenue, while profit after tax was 4.3 billion Birr, up from 2.9 billion in 2023. The audited financial report values Lege Dembi’s total assets at 17 billion Birr, and warns that MIDROC Gold is exposed to credit risk in its receivables, which stood at 9.6 billion Birr.

MIDROC Gold’s balance sheet reflects seven billion Birr in receivables from other MIDROC subsidiaries, including a six billion Birr loan given to a major shareholder, according to the report.

Connecting the Dots

Industry insiders who spoke to The Reporter expressed doubts about the impartiality of the cyanide audit process, questioning how auditors were able to conduct a thorough assessment within a week’s time.

They further argue the cyanide audit was undertaken as part of efforts to secure credit from International Finance Corporation (IFC), which is weighing a USD 80 million loan to MIDROC for the construction and renovation of hotels in Addis Ababa ahead of COP32 next year.

During the event at the Sheraton Addis this week, the Minister of Mines hinted at renewed prospects for finance.

“[ICMI] certification is crucial for the company to access financing and support from partners. MIDROC is a responsible miner now,” said Habtamu.