Ethiopia: Mining Beyond Economic Impetus in Ethiopia

It is well recognized that mining is the process of extracting valuable minerals or other geological materials from the earth. These materials are used for a plethora of purposes, including the production of energy, constructing buildings, manufacturing various goods, among others.

The mining industry is critical to modern society because it provides raw materials for peoples’ daily life. Mining underpins practically every area of modern life, from the construction of buildings and infrastructure to the creation of electronics and renewable energy technology.

The Ministry of Mines announced that the macroeconomic reforms being implemented are increasing gold production significantly. It was also pointed out that work is being done to increase productivity by modernizing traditional mining and reducing production loss.

State Minister of Mines, Million Mathewos told the Ethiopian Press Agency that the macroeconomic reforms being implemented by the government are significantly increasing the productivity of minerals, especially gold production.

The mineral production which was produced on a small scale is increasing to a large extent. In particular, gold productivity is growing at a high level. It is planned to produce 8.6 tons of gold in the current fiscal year.

He pointed out that 70% of the plan was achieved in the last three months alone. The reform is benefiting the mineral producers, who have purchased better machinery and technologies and are entering the production process.

Having this understanding in mind, The Ethiopian Herald had a stay with Gedion Petros, a geologist graduated from Addis Ababa University, to have some sorts of information about the significance of mining for backing the economic growth of a given nation, centering Ethiopia of course.

He said, “Mining industry is in constant development on earth as a result of increasing demand for raw materials. The acquisition of mineral raw materials is the most important part of the mining industry, which produces raw materials worth hundreds of millions of wealth a year. It promotes employment and increases the value of the gross domestic product. The influence of mining activity on the development of socio-economic aspects is vital though minimal in the country due to various factors.

The Ministry of Mines, in the country, is responsible for the development of the mining sector. The role of the Ministry is mainly to generate the basic geo-sciences data of the country, promote mineral and petroleum potential, negotiate and issue licenses to private investors, and ensure that they conduct mineral and petroleum operations in accordance with their concession agreements, he said.

According to Gedion, the Ministry of Mines is responsible for management of mining and petroleum sector in Ethiopia. It was established in 2018 under Proclamation No 1097/2018. Mined materials are needed to construct roads and hospitals, build automobiles and houses, make computers and satellites as well as generate electricity.

He said, “The mining sector does have a huge impact on economy as it helps the nation create job and foster employment opportunities, prop economic growth and development, augment foreign exchange earnings and balance of Trade, promote technological advancements and innovation thereby spurring contribution to nation revenues and public services.”

As to him, the main methods of mining have to be well exploited. To mention but a few, underground mines are more expensive and are often used to reach deeper deposits, surface mines are typically used for more shallow and less valuable deposits, placer mining is used to sift out valuable metals from sediments in river channels, beach sands, or other environments.

He said, “Unless duly taken care of and managed well, environmental impacts of mining like climate change, habitat destruction or deforestation, pollution, soil erosion, human-wildlife conflict, and the loss of biodiversity would be rampant.”

Yes, he added that good mining activities can increase national income, reduce pollution, decrease land slope, improve topsoil thickness, reduce soil erosion etc. As to him, Mining is already a high-tech and sustainable industry, and many countries need mining to not only thrive, but also to survive. The mining industry supports citizens’ everyday life, indeed! Aside from supporting thousands of jobs, the mining industry provides raw materials, minerals and metals critical to the national economic drive.

According to Gedion, life-saving medical devices would not exist without many of the metals and minerals that are mined. There are even medicines that doctors and patients rely on every day that would not be available without the presence of minerals. Mining has been a fundamental part of human civilization since the dawn of time, providing the raw materials necessary for advancements in technology, infrastructure, and industry.

Miners extract valuable minerals and metals from the earth, which are essential for manufacturing a wide array of products. For instance, iron ore is a primary component of steel, used extensively in construction and manufacturing. Copper is vital for electrical wiring due to its high conductivity. Rare earth elements are crucial for producing high-tech gadgets like smart phones, computers, and renewable energy technologies such as wind turbines and electric vehicles. Without mining, the availability of these essential materials would be severely limited, stifling technological and industrial progress.

The mining industry is a major economic driver significantly contributing to the GDP of many countries. It provides jobs to millions of people worldwide, from mining engineers to laborers, thereby supporting entire communities.

“In developing nations like ours, mining can be a catalyst for economic growth, attracting investments, and providing the means for infrastructure development is given due emphasis. Additionally, mining companies often invest in local communities, supporting schools, hospitals, and other essential services,” he opined.

Modern infrastructure relies heavily on materials obtained through mining. Roads, bridges, railways, and airports all require vast amounts of metal and stone. Concrete, a fundamental building material, is made using limestone, which is also extracted through mining.

As to Gedion, even the green energy sector relies on mining; solar panels, wind turbines, and electric car batteries require specific minerals and metals to function efficiently. Thus, mining underpins the development and maintenance of the infrastructure that supports modern society with a swelled economic muscle.

He said, “Universities, which are working on minerals and offering courses along this line like for instance, Addis Ababa University, Addis Ababa Science and Technology University, not limited to of course, need to employ state-of-the-art facilities, expert faculty, and strong industry partnerships, providing students with hands-on experience and a robust professional network. Notably, the commitment of these universities would enable the nation to sustainability ensure that graduates are well-prepared to contribute to the future of green energy and responsible resource management.”

According to Gedion, technological innovation depends on materials sourced from mining. Silicon, used in semiconductors, is derived from quartz. Lithium, essential for rechargeable batteries, is mined from various mineral deposits. As technology evolves, new materials are continually being discovered and utilized, often requiring specific elements that need to be mined. For instance, the transition to a low-carbon economy, with its focus on renewable energy sources and electric vehicles, depends heavily on mined materials.

Mining provides the foundational materials for industries thereby buttressing the production and distribution of goods. A disruption in the mining sector can lead to significant economic consequences, highlighting its importance in maintaining the flow of goods and services. Many forms of energy production are tied to mining. Coal, though declining in use due to environmental concerns, has been a major source of energy for centuries. Uranium, used in nuclear power, is another mined resource. Even renewable energy sources like wind and solar power rely on mined materials for their infrastructure. This demonstrates that mining is intricately linked to both traditional and modern energy solutions.