An illicit gold trade in Ethiopia's northern Tigray region is exacerbating post-conflict challenges in the aftermath of a two-year conflict that ended in November 2022, according to officials and an investigation.
The Reporter newspaper, in an investigative story published today, reported that Tigrayan military commanders have taken control of gold mining operations using forced labor since the fighting ended. They are extensively extracting gold around the clock with heavy machinery.
Chinese nationals and others have joined the illegal rush, with some miners using mercury and cyanide without safety protocols, the newspaper reported. The uncontrolled mining has led to multiple clashes over lucrative sites, leaving over 20 people dead since April, the same source added.
The gold is smuggled as far as Dubai through networks exploiting aid vehicles, the report said, adding that military officers coordinate the multi-million dollar trade by monitoring global gold prices daily.
Officials estimate none of Tigray's estimated annual 600 kg gold production reaches Ethiopia's central bank or federal government. Revenues instead arm militias amid tensions since a 2022 peace agreement ended the conflict, they said.
While illegal mining has surged since the fighting and during the post-conflict period, regional authorities also blame "the low prices" set by Addis Ababa for long incentivizing black market smuggling of Tigray's mineral wealth. They are calling for price reforms to redirect flows through official channels, despite the central bank under the federal government recently raising its gold buying price to 65 percent above international levels.
Prime Minister Abiy Ahmed recently stated that illicit hubs for mining items including gold have emerged in Shire, Tigray and Assosa, Benishangul-Gumuz.