Ethiopia has launched its first gold refinery, with an initial investment of $50 million, Prime Minister Abiy Ahmed said.
He inaugurated the National Precious Metals Refinery at Bole Lemi Special Economic Zone on Saturday, 10 October. The project aims to process more gold in Ethiopia and serve regional mining companies.
The plant is a partnership between state-owned Ethiopian Investment Holdings (EIH) and Sam Precious Metals. EIH holds a majority stake, Abiy said, according to Reuters.
Stated capacity of more than 600 tonnes
The Prime Minister’s Office says the refinery is designed to process more than 600 tonnes of precious metals a year at full capacity.
That figure describes the plant’s stated capacity, rather than the amount it currently processes.
Its services include testing metal purity, refining gold and producing gold and silver bars. Reuters also reported plans for melting, casting, minting bars and making the tools used to stamp them.
Plans to serve regional miners
Abiy said the refinery would offer refining, certification and sales services to neighbouring countries and regional mining companies.
The Government Communication Service said the project aims to reduce the need to send gold outside Africa for processing.
Gold exports are one of Ethiopia’s main sources of foreign currency, Reuters reported. The government says local refining could support export earnings, create skilled jobs and help the jewellery industry.
These are expected benefits rather than results established by the launch.
Trivane View
The launch gives Ethiopia a new way to process precious metals at home. Its wider value will depend on how much metal the plant actually handles, whether regional miners use it and whether the expected gains in jobs and earnings follow.
