Ethiopia's gold exports have remained lukewarm as the country remains highly dependent on artisanal and informal miners, according to Habtamu Tegegn, Minister of Mines.
Speaking to parliament today during his presentation of the ministry's nine month report, Habtamu  said that while Ethiopia has an estimated potential of mining 500 tons of gold annually, this is not being properly utilized.
"Though the potential is 500 tons, that is not being properly utilized because we are highly dependent on artisanal miners," Habtamu stated.
The Minister has reported that although the country’s formal gold exports have increased over the past nine months, they remain below the annual target.
During his presentation, Minister Habtamu stated that over three tons of gold were exported during the period, reaching 75 percent of the yearly target. This represents a 12.6% increase compared to the same period last budget year.
Of the total exports, 2.4 tons came from mining companies while 0.4 tons were contributed by artisanal miners.
However, Habtamu noted that revenue from gold exports has reduced compared to the target, even if it is higher than the previous year. He attributed this to delays in production from some investors and the ongoing issue of gold smuggling.
Despite falling short of its target, Ethiopia's gold exports during the nine month period raked in $274 million in revenue. This marked an 83 percent jump in foreign exchange earnings compared to the same period last year.
He noted that currently, state-owned Ezana and Midro are the only large-scale gold mining companies Ethiopia can rely on for exports. However, their contribution remains limited because one of them, Ezana, sustained damage during the two year civil war in Tigray between 2020 and 2022. "It is being reconstructed now," he said.
Habtamu emphasized that a country cannot depend solely on informal mining to meet its gold export targets. Formal, industrialized mining is needed to properly tap Ethiopia's gold reserves.
However, Habtamu expressed optimism for the future, citing two large scale mining projects that are expected to start commercial extraction in the near future. These include the Tulu Kapi gold project owned by UK-listed Kefi Minerals and the Kumuruk project majority owned by Allied Gold Corporation.
The minister hopes these projects will help reduce Ethiopia's heavy reliance on artisanal mining and boost its formal gold sector exports.
