Newsletter 8 /National Coffer

National coffer

Newsletter 8

Ethiopia offers excellent opportunities for mineral development. Geological studies have identified a favorable geological environment hosting a wide variety of mineral resources. According to the Ministry of Mines, Ethiopia's green stone belts offer one of the finest areas for gold mineralization anywhere in the world. More than 500 metric tones of gold deposits have already been identified by government exploration efforts. Additional gold reserves are expected to be identified in at least seven regions of the country.

In addition to gold, Ethiopia is blessed with a large deposit of precious and metallic minerals such as tantalum, iron ore, and platinum. Industrial and construction minerals such as caolin, diatomite, fieldspar, quartz, silicas and,

potash, phosphate, soda ash, salt, rocksalt, limestone, marble and granite.

Energy minerals including coal, oil shale, natural gas and hot spring have also been identified in various parts of the country.

With regard to fossil energy resources, there are significant opportunities for extracting oil and natural gas in the four major sedimentary basins, namely the Ogaden, the Gambella, the Blue Nile and the Southern Rift Valley.

It is also believed that Ethiopia is blessed with large deposits of other minerals, which are not explored so far. Nowadays, the income generated from the sector is significantly growing than prior times; for instance, from the export of major minerals: gold, tantalum and silver (produced in the gold separation process abroad), the country gained a total of Birr 1.8 billion in foreign currency between the years 1998/99 - 2003/04. Other industrial and construction minerals are also produced for local consumption; some of them, in fact, are used for import substitutions. In addition, a total income of Birr 94,840,218 was generated from different mineral operation activities (royalty and other services) between the years 1995/96 - 2003/4. On the other hand, from July 2003 up to December 2004, the value of commercial mineral items exported through National Bank of Ethiopia is 3,620,175.77 USD. Even though studies are not completed, currently the mining sector contributes about 2.5 per cent to the GDP.

The following is list of the major mineral commodities in Ethiopia with significant opportunities for extraction.

Reserve of Major Mineral Commodities in Ethiopia

No.	Mineral Commodity	Unit	Proven Reserve	Location
1. Precious & Metallic Minerals
1	Primary Gold	Ton	61.208	Lege Dembi, Southern Ethiopia
2	Platinum	Ton	12.5	Yubdo, Western Ethiopia
3	Iron	Million ton	32.5	Bikilal, Western Ethiopia
4	Tantalum	Ton	2,358.32	Kenticha, Southern Ethiopia
II Industrial & Construction Minerals
1	Kaolin	Ton	225,397	Bombawoha, Southern Ethiopia
2	Diatomite	Million ton	36,602	In different parts of the rift valley
3	Feldspar	Ton	501,000	Kenticha, Southern Ethiopia
4	Quartz	Ton	55,000	Kenticha, Southern Ethiopia
5	Silica Sand	Million ton	3.4	Mugher Valley, Central Ethiopia
6	Potash	Million ton	15	Afar region, Northern Ethiopia
7	Phosphate	Million ton	181.08	Bikilal, Western Ethiopia
8	Soda Ash	Million ton	460	Ziway in the rift valley
9	Brine salt	Million ton	290	Lake Afdera, Northern Ethiopia
10	Rock salt	Million ton	1000	Afar Region
11	Limestone	Million ton	136.7	Mugher, Central Ethiopia, Mesobo, Northern Ethiopia & Dire Dawa, Eastern Ethiopia
12	Limestone	Million M³	60	Hakim Gara, Eastern Ethiopia
13	Marble	Million ton	2.8	Daleti, Western Ethiopia
14	Granite	Million M³	15	Harar, Eastern Ethiopia
III. Energy Minerals
1	Coal	Million ton	13.73	Delbi & Moye, Western Ethiopia
2	Coal	Million ton	64.453	Yayu, Western Ethiopia
3	Oil Shale	Million ton	108.05	Yayu & Delbi, Western Ethiopia
4	Natural Gas	TCF	2.7	Calub, Eastern Ethiopia
5	Geothermal Resource	MW	33.5	Aluto-Langano & Tendaho in the rift valley
IV. Gemstone
1	Opal	Million k.g	2.83	North shoa, Central Ethiopia

Source: Ministry of mines (2005)

Ethiopia Investment Authority (2005)