Ethiopia Resources Commodities 2019

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MINISTRY OF MINES

AND PETROLEUM

ETHIOPIAN
OPALS

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ETHIOPIAN OPALS

Fiery Opals

The Greeks called this stone Opallios, which literally means “to
perceive a change of colour” – a name which reflects the wild and vivid
colours of the opal. With their extraordinary colours, opals remain a
timeless favourite for jewellers across the world.

ETHIOPIAN OPALS Wollo opal


Ethiopia is well on course to become the As mentioned, the 2008 discovery of the
first challenger to Australian opals. In 2008, Wollo opal took the gemstone world by
the discovery of spectacular Wollo opals in storm. The play of colours in the Wollo
northern Ethiopia changed the game. This gemstone often goes through the whole
high quality, structurally stable and strikingly piece of the rough stone, producing a striking
beautiful opal was exhibited at the Tucson form with remarkable patterns. The opal
Gem and Mineral Show in 2010, and Ethiopian mines extend from the Wollo and Gonder
opals have been unstoppable ever since. zones over 400 square kilometres in Amhara
Between 2000 and 2014 alone, Ethiopia’s Regional State. This opal is mined 2,500
exports of opals increased by 136.6%. More meters above sea level in this mountainous
discoveries followed – there are now four terrain.
types of opals being mined in Ethiopia, with
the majority only discovered in the last Black opal
decade. Ethiopia’s most recently identified deposit,
Black opal was discovered in 2013 at the
THE OPPORTUNITY: Stayish mine just 100 kilometres from the
FOUR TYPES OF OPALS famous and historic town of Lalibela in
northern Ethiopia. This is where the stone
Showa and Mezezo opal derives its alternative name - Lalibela opal.
Showa and Mezezo opals were discovered in Mined in a distinct opal-bearing layer in a
1980s on the highland plateau located in the mountainous area of around 3,000 meters in
central Shewa province of Ethiopia, 2,500 to altitude, the general body tone of the rock is
3,299 meters above sea level and covering a dark in colour, hence the name ‘black’ opal.
large area of 100 to 200 square kilometres. But the opal itself has a vivid play-of-colour.
This is a variable opal, including stones
with chocolate, honey and fire colours and Afar opal
qualities. The Afar opal is commonly fiery, with minor
opalescence and a distinctive character. It
was discovered as recently as 2010 in the Afar
Regional State, in northern Ethiopia. Artisanal
and small scale mining of Afar opals currently
takes place in Ethiopia, but large scale mining
has not yet been realized.

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
EMERALDS

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ETHIOPIAN EMERALDS

The vibrant green stone

An ancient stone, the oldest emeralds are about 2.97 billion years old. The
first record of emeralds being mined was in Egypt around 1500 BC. In modern
times, this vibrant green stone is one of jewellery’s most beautiful and popular
gemstones. An emerald pendant necklace owned by Elizabeth Taylor sold for
$6.5 million in 2011, breaking down to about $280,000 paid per carat.

ETHIOPIAN EMERALDS THE OPPORTUNITY:


Until recently, emerald mining in Ethiopia THE GEMSTONE GIANT AWAKENS
has largely been carried out by artisanal
miners who are organised into unions and International gem forums were buzzing in
cooperatives. As such, emerald mining 2017 with the news of the high quality and size
is emerging as a major sector, creating of Ethiopia’s very recently identified emerald
job opportunities for more than 30,000 deposits. Discovered in August of 2016 by
Ethiopians. Most emeralds are then exported artisanal miners looking for tantalum, these
to Switzerland, Australia and the United new finds are comparable to those mined
States. In 2017, Ethiopia exported 2,290kg in Colombia in terms of hue and quality. The
of emeralds. Surpassing the export of opal emerald deposits are located in the Sebo Boru
and sapphire which are the current major district in the beautiful coffee-producing
gemstone types exported. Oromia Region in southern Ethiopia, where
the rural villages of Kenticha and Dermi host
particularly high quality deposits. Commercial
emeralds are suddenly a real and urgent
opportunity for investors – Ethiopia is calling.

Ethiopia is currently exploring ways to


establish a traceability and identification
protocol for emeralds, in order to certify their
origin and maximise their value.

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
SAPPHIRES

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ETHIOPIAN SAPPHIRES

Timeless sapphires

Did you know that the top-end Apple Watch has sapphire glass in its screen? It does.
But despite such industrial uses, this most beautiful gemstone is best known – and
loved – for its breathtaking appearance in jewellery. Deriving its name from the Greek
word sappheiros, sapphires have been used in jewellery for thousands of years. The
best-known sapphires are the brilliant blue variety, but they actually come in every
colour of the rainbow—including orange, green, yellow and pink. Red sapphires are
better known as rubies, although both are varieties of the mineral corundum.

ETHIOPIAN SAPPHIRES THE OPPORTUNITY:


Ethiopians have been mining sapphires QUALITY SAPPHIRE DEPOSITS ARE FOUND
artisanally for many years in Tigray, the
northernmost of the nine regions of Ethiopia, The gemstone world was rocked in November
particularly around a local town called 2016 with the news that high quality deposits
Chila. There are three well-known types of of new and unique sapphire had been found in
sapphire in Ethiopia. Blue Star sapphire and Tigray. Early samples taken near the villages
Fancy sapphire are common, but it is the of Awaet, Adi-Shumbro and Chila confirm
‘colour-changing’ sapphire from the areas the sapphires are of an impressive quality,
surrounding Chila which is of highest quality good size and with a wide variety – easily
and commercially sought. These colour comparable to the sapphires of Madagascar.
changing gemstones feature a blue, star and These deposits fall within the western
green series and can be classified as either greenstone belts that run from the north-
‘High-Fe’ sapphire or ‘Low-Fe’ sapphire, and east to the south-west of Tigray, which is
are formed by magmatic and metamorphic primarily an agricultural and cattle farming
processes. Ethiopia also produces the region. These sapphires are dominated
rare and coveted pink sapphires known as by a blue-yellow-green series but they
‘padparadscha’ (from the Sinhalese word also include exciting varieties such as red,
meaning aquatic lotus blossom), which purple, white, orange, yellow and even a
has seen renewed interest since England’s deep pink. All indications are that Ethiopia’s
Princess Eugenie revealed her salmon newly discovered deposits are ripe for
padparadscha engagement ring in early 2018. commercial exploitation. Limited geological
and geochemical work in the belt to define
the mode of occurrence means that the field
is wide open for investors to bring these
extraordinary gemstones to a global market.

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
GOLD

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ETHIOPIAN GOLD

THE ANCIENT TREASURE

Ethiopia’s long history of gold mining spans three millennia. Some historians have
estimated that the oldest mine in the world, dating back more than 6,000 years,
was in western Ethiopia near the Sudanese border. The numerous placer gold
deposits in Ethiopia’s rivers have been exploited for thousands of years by small-
scale miners using rudimentary techniques in the water and river sands. Recent
studies by independent third parties have indicated that western Ethiopia is likely to
hold one of the largest gold deposits in Africa.

ETHIOPIAN GOLD The Northern greenstone belts


Modern, commercial gold exploration in The most promising discovery in this
Ethiopia was begun tentatively in 1979 by greenstone belt is the Terakimiti prospect
the USSR, with further work done in the where trenching and drilling has revealed
1980s by the government’s own Geological grades of up to 16 grams a tonne. The deposit
Survey Department. But it was a substantial contains an estimated total of 20 million
Norwegian-Ethiopian collaboration that took tonnes of ore with a grade of 0.29 grammes
place from 1996 to 2001 which delivered per tonne and there is also 6 million tonnes of
a meaningful step forward. This project ore that contain 2.24% copper.
undertook geological mapping on both a large
and small-scale, as well as geophysical and The Southern greenstone belts
geochemical surveys. It revealed numerous There are already two gold mines in the
gold showings in western Ethiopia and a Southern greenstone belt. The Lega Dembi
follow-up project with detailed mapping, mine in the Oromia Region has two active
stream sediment sampling and diamond sites already in production – one open pit
drilling was also undertaken. and an underground gold mine. The Sakaro
mine is an underground mine in the Gujji
THE OPPORTUNITY: zone in Oromia Region which is still under
A NEW GOLD FRONTIER development.

Ethiopia’s gold deposits are clustered in a There are additional opportunities for
Proterozoic basement, which covers about investors in epithermal gold. The East African
18% of the country. A considerable part Rift Valley transecting Ethiopia hosts a large
of this area has already been surveyed by number of geothermal fields which are
aerial geophysical surveys and geochemical used for power generation, and a low grade
mapping. Good news for investors is that epithermal gold deposit was discovered
significant gold mineralization has been found at Tendaho in the Afar region. Geothermal
in three regions: drilling revealed highly silicified zones
returning gold grades of 1 gram per tonne.
The Western greenstone belts Currently, investors are intensively exploring
The presence of gold mineralization in these to better define the pockets of epithermal
areas has been known since the early 1930s, gold around the northern part of the country.
and several of the belts host gold. The most
promising gold occurrences are located in the
Tulu-Kapi and Ankore areas.

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
POTASH

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ETHIOPIAN POTASH

POTASH on the great


Salt Plane of Dallol
Did you know that the word potassium derives from potash? Potash is a form of
mined salt that contains potassium in water-soluble form. Before the industrial
revolution, plant ashes were soaked in water, usually in a pot, to create the product
– hence the name ‘pot ash’. Today the product is primarily used in fertilizers, and
rising demand from China and Asia is set to drive the market in the coming years.

ETHIOPIAN POTASH
Potash was mined in Ethiopia as early as the Past exploration undertaken by various
14th century, and one of the world’s largest companies has confirmed the presence of
deposits is located in the northern region of two ore bodies at Dallol.
Tigray. There, on the great Salt Plane of Dallol,
extraordinary deposits of evaporite minerals Firstly, there is the Crescent. Lying just one
can be found, particularly in an area called the kilometer south-west of Mount Dallol, the
Danakil Depression. Prospectors have been irregularly shaped ore body is about 1000m
aware of the Danakil Depression’s potential long and 100m wide. This surface deposit
since the early 1900s, and efforts to launch surrounds the bubbling spring of magnesium
some small-scale production were made prior chloride referred to as ‘Black Mountain’.
to the Second World War. Later, the Ralph M.
Parsons Company made a series of attempts The second is Musleyore. Named for the
at large-scale potash production between Musley Canon nearby, this ore body lies about
1958 and 1967. 4.5 km west of Mount Dallol. It is about 4 km
long and 1.5 km. wide and was extensively
THE OPPORTUNITY: explored during the 1960s. Drilling has
THE DANAKIL DEPRESSION IS CALLING OUT indicated the presence of a potash-bearing
FOR EXPLORATION horizon at 500 meters depth, similar to that
explored by underground work and shallower
The Danakil Depression lies at the junction drilling.
of three tectonic plates, and was formed as
a result of the African and Asian continents There are already companies with successful
moving apart. This caused rifting and potash operations underway in Ethiopia.
volcanic activity, resulting in its complex Yara Dallol and CERCAM Minerals Ltd are
and alluring geology. The salt formations two companies operating in the Danakil
on the surface cover an area of about 450 Depression. Both have undertaken feasibility
square miles, but only a small part of this area studies in recent years, with significant
has been explored. One can see on Mount reserves of natural resources for the
Dallol colourful layers of salt about 20 or 30 production of Sulphur of Potash (SOP) having
centimeters thick, with thin clay and gypsum been identified in their allocated exploration
layers in between, lying exposed to the air. areas.
Not only is the Danakil Depression the hottest
place on Earth in terms of year-round average
temperatures, but it is also one of the lowest
– sitting 100 metres below current sea level.

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
TANTALUM

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ETHIOPIAN TANTALUM

TECH’S HOTTEST
COMMODITY
Today tantalum capacitors are used in almost every kind of electronic device, and the
increasing penetration of the smartphone market means tantalum demand is only
set to grow in the coming years. Tantalum (Ta) and Niobium (Nb), the ‘indispensable
twins,’ are closely associated in nature. When it comes to energy storage, minerals of
the Columbite-Tantalite series, or Coltan, which contain variable quantities of both
tantalum and niobium, are in great demand in the modern world. Ethiopia has the
sixth largest documented reserve of Tantalum in the world.

ETHIOPIAN TANTALUM
Adola in southern Ethiopia is known to host Fuel Corporation (EMPBFC), which has been
a long and linear belt of this rare metal calling in recent months for partners to help
occurrence of tantalum and niobium in its develop the asset. The EMPBFC is currently
Kenticha Belt, which extends for over 100 producing approximately 200 tonnes of
kilometres and covers an area of more than tantalum concentrate a year at Kenticha,
250 kilometres. Three types of ore of the mainly for export. The mine is estimated to
deposit have been identified: contain primary ore (described above) with
a probable reserve of approximately 17,000
 Primary ore: rare tantalite bearing tonnes. In late 2017/ early 2018 the Ethiopian
granite-pegmatite with complex Ta-Nb-Li- government initiated an open bid to identify
Be mineralization has meant this is a world investor partners to develop Kenticha and
class ore reserve the process attracted the interest of four
 Lateritic-type ore: a ‘rind’ developed substantial international companies. The
over the pegmatite and granite as a result government is calling on investors to consider
of intense weathering joint ventures in exploration, development
 Elluvial, delluvial and alluvial placer ore: and expansion, mining and producing value
marked with high quality Ta-Nb added materials from tantalite concentrate,
at Kenticha.
Together, the weathered ore over the primary
ore of pegmatite in the Kenticha belt have
been recognized as one of the best deposits
of this type anywhere in the world.

THE OPPORTUNITY:
A JOINT VENTURE TO DEVELOP
KENTICHA MINE

Kenticha mine is considered to have one


of the world’s largest tantalum resources.
Located approximately 550km south of
Addis Ababa at Adola, the 25 year old mine
is technically still the property of the state-
owned Ethiopian Minerals, Petroleum and Bio

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MINISTRY OF MINES
AND PETROLEUM

ETHIOPIAN
ENERGY MINERALS

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ETHIOPIAN ENERGY MINERALS

LITHIUM & GRAPHITE


WAITING TO BE EXPLORED
With its promising geology and early
estimation of reserves, Ethiopia is the perfect
place to explore for lithium and graphite.

ETHIOPIAN ENERGY MINERALS Mengist-Chembi and Chembi areas. The


The global battery race means interest in the Ministry of Mines, Petroleum and Natural Gas,
supply of energy minerals has never been together with a university-industry linkage,
greater. Conventional batteries have an anode is currently undertaking a study to better
(or negative pole) made of graphite, the layers qualify parts of these graphite resources.
of which contain the lithium ions when in
a charged state. As the global demand for
batteries has soared over the last 30 years,
graphite and lithium are on everyone’s lips.
The rise of electric cars is only expected to
drive demand further. Did you know that
Nissan’s fully electric car, the Nissan Leaf, has
a lithium-ion battery which contains nearly 40
kilograms of graphite?

THE GRAPHITE OPPORTUNITY: THE LITHIUM OPPORTUNITY:


ETHIOPIA’S GRAPHITE DEPOSITS AT MOYALE READY FOR EXPLORATION
AND ELSEWHERE
Are you looking to explore for lithium?
In southern Ethiopia, right on the Kenyan Ethiopia is full of potential. Both the salt
border, sits the Moyale deposit with an brines in the marine strata of southern
estimated reserve of 460,000 tons of well- Ethiopia and the saline springs associated
crystalised and flaky graphite. Most likely of with volcanic activity in the Ethiopian rift of
sedimentary origin, the graphite in the Moyale Afar are likely to contain lithium, in addition to
area is hosted by quartz-feldspar-mica schist the trace elements and edible salt currently
and quartzite which form continuous bodies produced. Private sector investors could bring
extending for hundreds of meters. Studies the requisite technology and expertise to
have shown Moyale’s graphite content to be Ethiopia, which are urgently needed to better
moderate, but generally fine-grained. analyse the country’s lithium potential.

The gold and base metal bearing belts in the


Adola region in eastern Ethiopia, and others
in the west and the north of the country are
also all known to contain graphite. Several
long belts of graphitic schist extend for
many kilometers through the Adola region,
specifically in the Bekeka, Kenticha, Kibre

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