What role does the Corporation play in the mining industry of the country, and what is Ethiopia’s potential in natural resources?
We are one of the pioneers of the mining industry in Africa, with over 80 years of experience in mineral exploration, development, and marketing across resources spanning from gold, to tantalum, platinum, gemstones, and even salt. As a state-owned public enterprise, we have also been involved in drilling and laboratory services (e.g., sample preparation). Besides these, EMPBC has also participated in the discovery of the Ethiopian mining belt since 1935, and, for the last 35 years, we have been among the top six global exporters and producers of tantalum. Finally, we have a 60-year experience of exporting and processing gold, and, until recently, we have been the largest exporter in Ethiopia. We act as a one-stop shop for investors by providing guidance and consultancy, and we aim to enhance Ethiopia's presence on international markets.
What can Ethiopia's Mining industry offer to the green transition - both today and in the future?
The country has been in the mining business (mainly in the gold space) for over 3,000 years, but the mechanized activities started only 50 years ago, so the industry is still in its infancy, and has a lot of opportunities for large-scale exploration and development. Given that 70% of our resource pool has not yet been tapped, there is plenty of opportunity for all interested parties, both local and from abroad. In recent years, Ethiopia has been undergoing a number of reforms where the mining sector has been one of the five strategic pillars in the homegrown economic agenda, as well as in the ten-year development plan. By providing an investment guide, we are now making it easier for investors to access information, and we also increased the national capability in terms of providing various industry services, such as drilling, laboratory processes, and skilled manpower. Starting with 2019, the government has been increasing transparency by digitizing the licensing system and the geodata information that would, otherwise, be accessible via submitting a physical application, thus limiting international investment. The green transition has exponentially increased the number of investors coming into the country over the last three years. As a result, in the coming 24 months, we are going to see large-scale mining projects start operation, hence boosting our natural mineral production, and enhancing our exports.
What main challenges will you need to overcome in order for these investments to keep on landing in the country?
To create a conducive environment for investment, we are working on harmonizing the policy and regulatory frameworks, and continue to improve our administrative mechanisms, aligning them to the international standards. The critical components in attracting investment are the security of business, and a sustainable policy, two areas that we have been greatly consolidating as of recently. By leveraging all these advantages, Ethiopia has the chance to become one of the most attractive mining jurisdictions in Africa.
Which metals found in Ethiopia have the potential to play a central role in the economy of the future?
Besides gold, we also have a potential discovery of lithium as we have one of the largest world-class ores of tantalum, and a number of discoveries have also been made in iron ore. In addition, we have phosphate, and the largest potash discovery, both vital elements for agriculture.
The top four precious stones are abundantly found in Ethiopia, and we can pride ourselves with 45 gemstone varieties, from opals, to emeralds and sapphires. Most of our mine exploration processes are currently undertaken by Australian companies, followed by American and Canadian players - but the mineral processing and factory production are owned mainly by Chinese entities. However, very few engage in the gold or oil & gas industry.
Talent seems to be an increasingly mentioned challenge in the industry; are you taking any particular measures to make Ethiopia’s talent stand out?
In 2022, we launched a mineral processing program at Addis Ababa University, one of the oldest universities in Africa, with the purpose to produce mineral ore processors, technicians for drilling, and laboratory experts that are highly in demand nowadays. Furthermore, we are also working with many regional universities situated in the proximity of the mining sites, where we are establishing technical centers. In the dimension stone industry, Benishangul has one of the finest marble deposits in the country, comparable to the famous Carrara in Italy. However, due to the lack of expertise on the ground, the 18 investors that are injecting funds into these sites need to import talent to be able to support their developments. Seeing this situation, we took it upon ourselves to train the workforce needed, so every six months the expertise will be available for the said industry.
What is it that you find meaningful about working in this industry on a personal level?
I have a background in economics, but I have been working for the Canadian International Resource Development Institute for over six years, where I had the privilege of designing and implementing a strategy program in Ethiopia focused on improving the governance and support the long-term management of a sustainable mining sector. Seeing the immense potential found here, I became very passionate about the mining sector, especially since it can act as the driving force that leads the economic transformation of the country positively to supply the much needed mineral commodities to achieve the transition to the green economy.
