MINISTRY OF MINES,

PETROLEUM AND NATURAL GAS

5 reasons Ethiopia
is the mining
investment
destination you’ve
been looking for
If you’re looking for a mining destination with the
right mix of mineral potential, stability, infrastructure
development and government support for investors
– consider Ethiopia. This country case study outlines
5 reasons why you need to take another look at one of
Africa’s best performing economies.

— Ethiopia’s High Economic Growth

— Extraordinary Mineral Potential
— Modern Geodata to Support Exploration
— A Stable Legal Framework
— Major Investments in Infrastructure and Accessibility

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Ministry of Mines, Petroleum and Natural Gas

WELCOME TO Reason 1:

THE LAND OF Ethiopia’s WHAT IS ETHIOPIA’S

GROWTH AND

record growth TRANSFORMATION

OPPORTURNITY Ethiopia has seen astonishing growth in the

last ten years. Growing at an average rate of
PLAN (GTP) II?

You may have heard about Ethiopia’s

Ethiopia’s virtually untapped, diverse
and vast mineral resources offer huge
potential opportunities for exploration
and development. These include - but
are not limited to - tantalum, potash,
gemstones, gold, iron ore and various
industrial, energy and construction
minerals. This extraordinary potential
coupled with improving government
policies and regulations means Ethiopia
is now very much on the radar screen of
international mining investors.
10.2% between 2006 and 2016, the country
is consistently one of Africa’s top performing
economies. The country’s Growth and
Transformation Plan II is targeting an annual
average real GDP growth rate of 11%. Ethiopian
industry is projected to grow at an annual
average rate of 20%, with projected growth
of 21.9% in the manufacturing sub-sector;
31.6% in electricity, gas and water; 15.4% in
construction; and 32.8% in the mining sector.
GDP GROWTH RATE (%)
Ethiopia Sub Saharan Africa
14
12
10
8
6
4 Plan, the mining sector aims to
2 increase its contribution to GDP from
0 2% at present to 10% by 2025.
-2
GTP. But what is it exactly? Ethiopia
aims to achieve middle income status
by 2025 by gradually transitioning
from an agricultural to an industrial
led economy. This will be achieved by
the implementation of the Growth and
Transformation Plan (GTP) II.
Currently, agriculture is the primary
driver of economic growth, accounting
for 46% of total Gross Domestic
Product (GDP), 80% of employment
and 85% of export revenues in Ethiopia.
Transformation to an industrial
World
economy requires strategic and
systemic linkages with all sectors of
the economy. The extractives sector
is well positioned to be a driver of this
transformation. Aided by the Ministry
of Mining Petroleum and Natural Gas’s
25-year Mineral Sector Development

-4

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016
Source: World Bank

2 1
Ministry of Mines, Petroleum and Natural Gas

Reason 2:

Extraordinary Spotlight 2: potash

mineral potential Of all of Ethiopia’s mineral

potential, potash has garnered
some of the greatest interest.
95% of world’s potash is
mined for use in fertilizers,
Did you know that Ethiopia has a mining pedigree dating while the rest is used for feed
back more than a millennium? Despite this long history, supplements and industrial
production. The presence of
today commercial mining is still in its early stages, providing evaporite minerals in the Danakil
Depression, and particularly
ample opportunity for those wishing to invest in its mining the Great Salt Plane of Dallol in
sector – like you. northern Ethiopia has meant
various exploration efforts
have been undertaken in the
past. These have confirmed the
Spotlight 1: Gold presence of two ore bodies at
Dallol - the Crescent ore body
and the Musley ore body, both
Artisanal miners have mined gold in Ethiopia for thousands of years, and of which represent excellent
gold deposits are widespread across the country. Southern Ethiopia’s opportunities for investors.
greenbelt already hosts two gold mines, with MIDROC Ethiopia mining at
Lega Dembi, and production having started at Sakaro in the Oromia region.
MIDROC has also been granted a large-scale gold mining licence and is
under development at Metekel in the Benishangul Gumuz region.

Several local and international large-scale gold mining companies have

been granted licences:
— Newmont is undertaking gold exploration in northern Ethiopia Spotlight 3: Tantalum
— Ezana Mining is a local mining company which is operating in the northern part
of the Tigray region;
— KEFI Minerals (Ethiopia) Ltd is a British owned company with operations under Ethiopia is already the sixth biggest producer
development in the western part of the Oromia region; of tantalum in the world. The Kenticha tantalite
— Tigray Resources has applied for a large scale gold and silver mining licence in mine in the Oromia region, in the southern part of
Tigray, in the north of Ethiopia Ethiopia, is estimated to contain sufficient deposits
— Ascom Mining Ethiopia has been prospecting for gold and base metals since to produce as much as 9,000 tons of processed
2014 and it has discovered a gold ore reserve in the Benishangul region. The tantalum products over the next 15 years, and
company is currently undertaking feasibility studies of gold prospects in the beyond. The mine also contains quartz and feldspar.
western part of the country.

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Ministry of Mines, Petroleum and Natural Gas

Reason 2:

Extraordinary mineral potential Mineral potential of Ethiopia: Metallic Minerals NORTHERN BELT:
—
—
—
Primary gold mineralisation
Base metals mineralisation
Placer gold occurrences
& deposits

Spotlight 4: Industrial Minerals WESTERN & SW BELT:

— Primary gold
deposits
A wide array of industrial minerals are already being mined very successfully in — Platinum deposits
Ethiopia. Here is a glance at a few of these: — Iron deposits &
mineralisation
— Base metals
— Soda ash is being mined at Lake Abiyata, in the rift valley about 200 kilometers south mineralisation
of the capital. The reserve at Lake Abiyata and the surrounding lakes exceeds 460 — Placer gold
deposits
million tons of sodium carbonate at salt concentration ranging from 1.1% to 1.9%. The
plant is producing about 5,000 tons of soda ash per year on a semi-industrial scale.
The consumers of soda ash are local caustic soda factories and soap and detergent
manufacturers.
— Kaolin, quartz and feldspar are being mined from the Adola belt in southern Ethiopia SOUTHERN BELT:
by a state-owned enterprise. — Gold deposits
— Silica sand is also being produced and used by local industries. The cement factories of and occurrence
— Nickel
the country are using high quality limestone, clay, gypsum and pumice as raw materials — Tantalum
for production. — Placer gold deposits
— Chromite
— Large quantities of locally mined construction minerals such as sand, gravel, scoria, mineralisation SOUTH
crushed stones, aggregates, scoria are used by the construction industry for buildings, SUDAN

roads, dams and bridges. Decorative and construction materials are also produced by 50
51
52
53
54
55
Chembi
Cheye Felege Berhan
Chilelo (Debre Gurach)
Creen
Dabus
Dalleti

foreign and local mining companies in the southern, western, central and northern
56 Dallol
57 Daneb
58 Debre Libanos
59 Debre Tabor
60 Decano
61 Delga Chebsi
62 Dewelle
63 Dilla

parts of the Ethiopia.

64 Dire Dawa
65 Dire Dawa
66 Dire Dawa
67 Dofan
68 El-Dere
69 El-Sod
70 Emei
71 Enda Gamers
72 Enticho
73 Fawly
74 Funiambira
75 Galleti
76 Gambela - Dembidollo
77 Gara Jabbe
78 Gebro
79 Gedamotta
80 Gefersa (Kersa)
81 Gerada
82 Gewane

Mineral potential of Ethiopia: INDUSTRIAL Minerals

83 Gidicho
84 Gimbi - Dalati area
85 Gimbichu
86 Godicho
87
88
89
Guba
Gudba Valley
Guder
Industrial Mineral Occurrence Map of Ethiopia
90
91
Guder
Gute Seddo Scale 1:2 000 000
92 Gypsite-Mariam
93 Haddessa Mulug-Bitatta
0 25 50 100 150 200
94 Hade Hulu Kilometers
95 Hagere Selam
96 Hakim Gara
97 Hamaressa 34°0'0"E 36°0'0"E 38°0'0"E 40°0'0"E 42°0'0"E 44°0'0"E 46°0'0"E 48°0'0"E

98 Harrar
Site Number Name Site Number Name Mineral Occurrence Legend Geological Legend
99 Hocdu
100 Hola bridge 1 Abay 86 Godicho Geology 1: 2 000 000
101 Hula Kuni 2 Abbay River Basin 87 Guba Sediments Igneous Metamorphic

3 Abdul Kadir 88 Gudba Valley Limestone

Dimension Stone (Granite) Talc Quaternary sedimentary
4 Abiyata 89 Guder Travertine
Kyanite
5 Abiyata, Shalla, Chiltu 90 Guder Phosphate
Phosphate Paleogene-Neogene (-Quaternary) sedimentary
6 Adadikoto 91 Gute Seddo Titanium Garnet, staurolite
7 Adami Tulu 92 Gypsite-Mariam Kaolin
Calcitic Marble Quaternary & Plio-Quaternary volcanic and plutonic
Olivine
8 Adami Tulu 93 Haddessa Mulug-Bitatta
Bentonite
9 Adare 94 Hade Hulu Feldspar Graphite
ERITREA Neogene-Paleogene volcanoplutonic
10 Addis Ababa 95 Hagere Selam Brick & Tile Clay
Dolomitic Marble 72
Quartz Late Cretaceous sedimentary
11 Addisge 96 Hakim Gara 122
12
160 168
12 Adigrat 97 Hamaressa Ceramic Clay
Feldspar, Quartz & Vein Quartz Asbestos 56
71 46 57 Early Cretaceous marine sedimentary
13 Adigrat 98 Harrar Gypsum
27
15 78 127
14 Adigudom 99 Hocdu Mica 13
Middle Jurassic sedimentary
14°0'0"N 134 14°0'0"N
15 Adua 100 Hola bridge Barytes 25
145
16 Afdera 101 Hula Kuni Beryl 73 Jurassic (undifferentiated age) sedimentary
Potash
17 Afkere 102 Jaja Valley Pumice 165

18 Aflata 103 Jemma Soda Ash 138 Mesozoic continental sedimentary ("Upper Nubian Sandstone" type)
Sulphur 137
19 Aghere Mariam 104 Kalamis
Rock Salt MEKELE
20 Agheremariam 105 Kebre Mengist Permian-Triassic continental sedimentary and glacial; locally Late Carboniferous
Diatomite 115
21 Akaki 106 Kecha 95
14
16
Neoproterozoic 1-2 plutonic & volcanoplutonic & "Dolerites"
22 Ambo 107 Kella Silica Sand & Sandstone
23 Ambo 108 Kenticha
Titanium mineral sands Neoproterozoic 1-2 sedimentary to volcanosedimentary with associated plutonic
24 Anno 109 Kerker
25 Assale 110 Koka Neoproterozoic 2-3 plutonic, volcanoplutonic and metamorphic
154
26 Awzet 111 Kombelcha 109
27 Axum 112 Kotcha Neoproterozoic 2 to Cambrian plutonic (carbonatite & syenite)
GONDER
28 Baruda 113 Kunni Valley
Neoproterozoic to Cambrian plutonic ("Older Granites") and volcanoplutonic
29 Bebeka 114 Lake Abiyata
30 Bedessa Tega 115 Lake Giulieth
49 Neoproterozoic 3 to Ordovician plutonic and volcanoplutonic
31 Belamor 116 Lake Langano
32 Belesa 117 Lake Shala DJIBOUTI Neoproterozoic 3 (NP3) to Ordovician sedimentary (basin); NP3 to Devonian in the Mauritanides
33 Bikalal 118 Lake Ziway 12°0'0"N 12°0'0"N
34 Bikilal 119 Lakes Region district Neoproterozoic 2-3 sedimentary to volcanosedimentary (active margin)
59 DEBRE TABOR
35 Bissidimo Valley 120 Lange WOLDIA
92 26
Neoproterozoic "Mobile Belt" with Neoproterozoic metamorphic, anatectic & plutonic, including remnants of archean to
36 Bissidimo Valley 121 Ledi
proterozoic terranes
37 Blue Nile Bridge 122 Mai Daro BAHAR DAR Mesoproterozoic (to Neoproterozoic ?) sedimentary
38 Blue Nile Gorge 123 Maji
39 Boji Dol 124 Mankush (Guba) 163
Mesoproterozoic to Neoproterozoic "Mobile Belts": MP-NP metamorphic & tectonic (including remnants of archean to
40 Boka 125 Marda 124
paleoproterozoic terranes)
SUDAN
41 Bole 126 Marechi
42 Bombase 127 Marwa DESSIE Other Features
43 Bombowha 128 Mega 62
Main Town
44 Bulen 129 Megado
121
45 Carrara 130 Meleka 51
Road

46 Chebret Ale 131 Melka Arba Railway

28 44
47 Chefe Jilla 132 Melka Jebdu 136 River
37
48 Cheha 133 Milendu (Belkoro)
54
49 Chelga 134 Moglal 133
82 3
50 Chembi 135 Mojo 32
87

51 Cheye Felege Berhan 136 Mora 31

55
1 164

52 Chilelo (Debre Gurach) 137 Mossobo 10°0'0"N 38 10°0'0"N

40 103
53 Creen 138 Mossobo 166
169
11
54 Dabus 139 Moyale
52 156
55 Dalleti 140 Mugher 126 58 132 61
56 Dallol 141 Mugher
9 112 158 35
57 Daneb 142 Mugher (Jima) 80
106 85 65
142 48 111
58 Debre Libanos 143 Mukarba 63 140 141
143 67 64
97 HARAR
59 Debre Tabor 144 Nazaret 34 41
161
120 45
33 98 96 74
60 Decano 145 Negash 159
66
42
36
61 Delga Chebsi 146 Neghele 22
10 77 102
89 2 162
62 Dewelle 147 Ogaden basin NEKEMTE ADDIS ABABA 75
155
101
91 90 23
63 Dilla 148 Osbole 84 167
94
153
64 Dire Dawa 149 Ramis Valley 113
125
21 135
65 Dire Dawa 150 Rochelle
144
66 Dire Dawa 151 Sacco River 76 110 NAZRET
150
67 Dofan 152 Samantar
68 El-Dere 153 Sebeta 151
107
69 El-Sod 154 Sekkota 149
70 Emei 155 Shebelli 118 157
119 ASELA
71 Enda Gamers 156 Shinile 8°0'0"N 8°0'0"N

72 Enticho 157 Sodero 79

47
73 Fawly 158 Sodoble 7 8
74 Funiambira 159 Soka 4
116

75 Galleti 160 Subaha 114

5
76 Gambela - Dembidollo 161 Sululta 117

77 Gara Jabbe 162 Tuluhora

78 Gebro 163 Warsissa
60
79 Gedamotta 164 Wenchit
147
80 Gefersa (Kersa) 165 Wukiro
AWASA
81 Gerada 166 Yegof GOBA
29
82 Gewane 167 Yubdo
83 Gidicho 168 Zariga
84 Gimbi - Dalati area 169 Zega Wodel
85 Gimbichu 170 Zembaba Woha 123 104 70
148 152

83
24 81

86 131
53
43 50
6°0'0"N
ARBA MINCH 130 6°0'0"N

30 170
105
88 99 39

18 108

6
20 93 17
146

19

68
100

129 69
4°0'0"N 4°0'0"N

128

139
Projection GCS_Adindan
Datum D_Adindan

Geology: Modified from: Milesi J.P.; Feybesse J.L.; Pinna P.;

Deschamps Y.; Kampunzu H.; Muhongo S.; Lescuyer J.L.; Le Goff E.; Delor C.; Billa M.; Ralay F.; Heinry C. Géologie et principaux
gisements d'Afrique - Carte et SIG à 1:10.000.000. 20ème Colloque de Géologie Africaine, Orléans - France, 02 juin - 07 juin 2004.

UGANDA Mineral Occurrences derived from:Tibebu M., & Haile Michael F., Industrial Minerals and Rocks Resource Potential of Ethiopia.
Geological Survey of Ethiopia. March 2003.
KENYA
Edited by Mitchell Clive, & Morgan David, 2007.
Map Design by Linley Kathrine.

34°0'0"E 36°0'0"E 38°0'0"E 40°0'0"E 42°0'0"E 44°0'0"E 46°0'0"E 48°0'0"E

Larger maps are available on request

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Ministry of Mines, Petroleum and Natural Gas
Reason 3:
Modern geodata to
support exploration
Exploration is so much easier with solid geodata. Although
regional maps at the scale of 1:250,000 have been
produced in Ethiopia since the early-mid 1970s, in 2017 a
major milestone was reached when 100% coverage of the
country’s land-mass at a scale of 1:250,000 was achieved by
the Geological Survey of Ethiopia (GSE).
100
As part of the government’s firm
commitment to encourage exploration
activity, and as part of the GTP II, further
activity will be significantly ramped up in the
coming years. The following targets have
already been set:
— Airborne geophysics surveys will be
increased from the current 30% to 100%
by the end of the plan period
— Geo-hazard study coverage (at a scale of
1:250,000) will increase from the current
42% to 100% by the end of the plan period
— 1:100,000 geoscience mapping will also
commence
— National Geochemical Mapping at
1:1,000,000 scale as well as a global
geochemical baseline have been initiated
recently to cover the entire landmass of
the country within a five year period.
Larger maps are available on request
6 7
%
coverage of the country’s
land-mass at a scale of
1:250,000 was achieved by
the Geological Survey of
Ethiopia (GSE) in 2017.
Reason 4:
a stable legal
framework
The Ethiopian Government understands
that stability and predictability are key for
your investment. The Government therefore
aspires to deliver a regulatory regime that is
both transparent and predictable.
Attracting mining investment is a priority.
That’s why both foreign and local mining
companies are encouraged to carry out
exploration, development, and production
according to their own plans and market
conditions. It’s also why holders of exploration
and mining licenses and their contractors are
exempt from import duties for all equipment,
machinery and vehicles that are used for the
purpose of mining operations.
The holder of small or large-scale mining
licenses may import – free of custom duties
– the consumables they require during the
development period in order to begin and
sustain commercial production for the first
three months.
The mining law also guarantees the opening
and operation of a foreign currency account in
Ethiopia, and retention of a portion of foreign
currency earnings and remittance of profits,
dividends and interest out of Ethiopia.
WORKING IN
PARTNERSHIP FOR
REFORMS AND
INVESTMENT
The Ethiopian Ministry of Mines,
Petroleum and Natural Gas (MoMPNG)
together with its development partners
is envisioning legal and institutional
reforms of the mining sector. By
overhauling the sector’s management,
the country seeks to attract investment.
To realise this vision, a Codification
Task Force has been established
within the Ministry, together with the
Canadian International Resources and
Development Institute’s (CIRDI) Support
to the Ministry of Mining (SUMM) project,
with the aim of improving the existing
legal, administrative and regulatory
frameworks. Together, these efforts will
strengthen the mineral licensing and
administration of the MoMPNG, as well as
the regional mining bureaus.
A modern and high quality Mining
Cadastre is also key to attracting
investment. The MoMPNG is working
continuously to strengthen its mineral
licensing and registry system to
ensure transparency, accountability
and efficiency. It is also working to
ensure the system is backed by high
quality geosciences data that is publicly
accessible. The five-year SUMM Project
is focussed on strengthening the mining
cadastre and registry system, and
addressing geo-data gaps.
Ministry of Mines, Petroleum and Natural Gas

Reason 5:

In a nutshell: Major investments in

what you need infrastructure and accessibility
to know about Enabling infrastructure is critical for mining investment. It is
the legal TRANSPARENCY also vital in driving Ethiopia’s transformation into an industrial

framework IN ETHIOPIA’S economy in the coming years. The Government of Ethiopia is

MINERAL SECTOR therefore investing extensively in infrastructure, including:

— ROYALTIES: In order to attract more Ethiopia is fully committed ENERGY ROADS RAILWAYS AIR
investment to the sector, the royalty to sector transparency.
payable by holders of large scale mining
The Government applied The GTP is aiming to Between 2010 and Ethiopia has been Ethiopian Airways is
licenses for precious minerals has been
reduced to 7%. Royalties in Ethiopia are
for Extractive Industries increase generation 2015, Ethiopia’s road investing heavily in now Africa’s largest
Transparency Initiative capacity to 17,000MW network has more rail construction for carrier, making Addis
calculated on an ad valorem basis, and are
by 2020 and then to than doubled to reach both passenger and Ababa a major hub
collected at two levels – for large scale (EITI) candidacy in October 35,000MW by 2037. 110 414km. cargo transportation. for the transport of
mining licenses by the federal state and for 2013, which was granted in The country is already In 2018, a 656 goods and people.
small scale mining licenses by the regional March 2014. well on track to km long railway The airline has
mining bureaus where the mining operation achieving this target. connecting Ethiopia excellent links all
is located. The EITI candidacy will be pursued It is also a source of to Djibouti’s port was over the world, and
rigorously to improve the foreign pride that Ethiopia’s commissioned and especially in Africa.
— OWNERSHIP: In line with the Constitution investment profile for the country new generation in 2015, the Addis
and the country’s Mining Proclamation, as well as encourage domestic capacity will be Ababa Light Rail was
mineral resources remain the property of accountability. An Ethiopian Extractive predominantly from opened.
renewable energy
the people of Ethiopia. The Government of Industries Transparency Initiative
sources such as hydro,
Ethiopia is therefore the official custodian Proclamation has been drafted and is
solar and wind.
of the mineral resources, with a duty to going through a consultation process
make use of them for the benefit and with different stakeholders. Greater
development of all Ethiopians. transparency in the extractive industry
has gained political momentum in
— ENVIRONMENTAL IMPACT: We care about recent years, and efforts to showcase
our environment, which is why licence Ethiopia’s commitments to such an
applicants are required to submit and initiative will be welcomed by investors
obtain approval via an Environmental and civil society organizations. Full
Impact Assessment (EIA) report from the disclosure of resource revenues allows
respective Authority before applying for an for the development of a transparent
exploration and mining license. mining sector from the very start. Such
information will also be of use to local
communities who can determine the
extent of the benefits they receive in
relation to the mining operations in the
regions where they live.

8 9
 Program undertaken with the financial support of the Government
of Canada through Global Affairs Canada
Programme realisé avec le appui financier du gouvernement du
Canada agissant par l’entremise d’Affaires mondiales Canada

MINISTRY OF MINES, PETROLEUM AND NATURAL GAS OF ETHIOPIA

P O Box 486
Addis Ababa, Ethiopia
Tel: +251 116 461 214
Fax: +251 116 463 454
Email: information@mome.gov.et

For more information and maps please visit the following websites:
http://www.mom.gov.et
http://www.gse.gov.et
http://cirdi.ca

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