Tigray To ‘Resume’ Mining Activity Under New Directive

EFFORT, Ezana accounts frozen as fed demands audit

Tadesse Werede, president of Tigray Interim Administration (TIA), has moved to resume gold mining in the region, which had been suspended, at least officially, since he replaced Getachew Reda at the helm.

A new directive from Tadesse’s office sets new rules for mining operators looking to work in the region. Operators who held a license prior to the suspension can apply for renewal, which will entail an inquiry into their original application, according to the directive.

Operators who previously held a license but are implicated in illicit mining will be investigated, according to the directive.

Permits for construction, mining, and manufacturing that were in the process of approval will be halted pending a review from officials at the Tigray Mining Bureau.

Machinery, chemical, and technology providers also will be licensed. Operators will be obliged to pay royalties, manage waste, plant trees and redevelop mined land.

The directive does not directly address foreign mining companies who have been waiting to resume operations in Tigray. However, it states that investors will need consent from locals and approval from the region’s mining bureau to proceed.

Several foreign mining firms, many of whom entered Tigray through joint ventures with Ezana Mining Development—part of the Endowment Fund for the Rehabilitation of Tigray (EFFORT) — are in limbo as Ezana’s future looks uncertain.

Sources say the federal government has demanded the regional administration and EFFORT’s managers to audit and restructure the endowment fund and Ezana. However, members of the TPLF have resisted the demands, according to the sources.

The dispute led the federal government to freeze bank accounts associated with EFFORT. The fund issued a strong statement this week insisting that it consents to an audit.

“The federal government ordered a blanket freeze on all EFFORT companies’ bank accounts starting December 3, 2025. The government must reverse this decision as it threatens to derail Tigray’s post-war recovery efforts,” reads the statement.

Formed in 1995, EFFORT is a conglomerate that has 17 companies under its wing across several sectors, including mining.

A scramble for control of EFFORT’s resources led to infighting between TPLF leaders, which culminated with former TIA chief Getachew Reda leaving the group to form a new political party. Beyene Mekru, former CEO of EFFORT, was ousted from his position and has also joined the Simret (Tigray Democratic Solidarity) party led by Getachew.

Officials fear that EFFORT’s resources could be diverted to finance military activity in Tigray as tensions between the regional administration and the federal government threaten to spill over into renewed conflict.

Despite Tadesse’s freeze on mining, reports indicate that gold has continued to flow out steadily from Tigray to places like Dubai through illegal routes. Insiders claim the freeze on mining was a cover for reclaiming mining sites from operators who were licensed under Getachew’s TIA.

Insiders and miners in the region say Tadesse is looking to redistribute the sites to his own supporters.

There were over 100,000 small-scale and artisanal gold miners active in Tigray during Getachew’s tenure as president, according to a report presented by Ezana’s managers during a mining and technology expo organized at Addis Ababa’s Millennium Hall in November 2024.

There were also over 90 large-scale gold mining companies licensed in the region, according to the Ministry of Mines digital portal.

However, the Tigray mining bureau sent a letter to the Ministry last year, requesting the revocation of the licenses of close to 30 large-scale companies in the region. Their project sites have since been claimed by military officers as compensation for their contributions to the war effort, according to sources close to the issue.