WorldWide Drilling Resource

50 JANUARY 2015 WorldWide Drilling Resource ® Ethiopia has Great Mining Potential Compiled by Bonnie Love, Editor WorldWide Drilling Resource ® A recent study conducted with the assis- tance of the World Bank and other devel- opmental partners from Australia, Canada, Denmark, and the United Kingdom sug- gests Ethiopia could potentially earn billions with the country’s unique geological features. The report, Strategic assessment of the Ethiopian mineral sector , estimates Ethiopia has the potential to earn $5 billion a year from themining sector. Minister of Mines Tolosa Shagi, said the country had obtained more than $2.3 billion by exporting gold, tantalum, opal, marble, and other minerals during the last four years. Mineral and petroleum exploration by the Geological Survey of Ethiopia and private companies, although limited, indicate the country has favorable geological environments for a wide range of mineral potential. Even with over 130 companies cur- rently working in the minerals and oil and gas fields, the country has not realized the full potential of its mining industry. Some of the hurdles the nation faces are limited geological data, lack of an educated work- force, and regulatory issues. Although placer gold has been mined in Ethiopia for more than 2000 years, large- scale mining is practically nonexistent. The mining industry only accounted for 19% of the country’s exports, and nearly all of it was gold. Could Ethiopia become a wealthy mining country? It’s possible, but it will take a great deal of planning, education, and research. A promising project by Canada’s Allana Potash is planned for the country’s Danakil Depression in northeastern Ethiopia and is expected to begin production in 2017. The Danakil Depression is one of the hottest places on earth; located 150 feet below sea level, this huge desert area receives very little rain. The landscape looks like something out of a science fic- tion movie with its lava lake, geysers, acid ponds, and giant yellow mounds of sulfur and salt. To encourage investment in the coun- try’s mining industry, the report suggested collecting geophysical data and geological mapping, in addition to improving the cur- rent mining regulation process. The report also addressed the issue of educating a workforce to employ at future mines; it proposed developing quality training at universities and vocational schools in the area to focus on mine engineering, as well as other mining jobs. The government of Ethiopia is also planning a new state-of-the-art standard gauge railway network to help accelerate the growth of the country’s overall econo- my. This will also aid in the further devel- opment of the mining industry and solve some of the logistical issues. Wi l l investors see the potential of Ethiopia’s mining industry? Only time will tell. Editor’s note: In between our print issues, the WWDR Team prepares an elec- tronic newsletter called E-News Flash . Based on readership, this was the most popular E-News Flash article of the month. Get in on the action and subscribe today at: worldwidedrillingresource.com Photo of the Danakil Depression courtesy of weather.com