MIDROC Launches Arjo Coal Plant with 1.2m Ton Capacity, Replacing Imports

MIDROC Investment Group has commissioned a 1 billion birr coal processing plant in East Wollega, adding 1.2 million tons of annual capacity to Ethiopia’s industrial supply chain and marking a significant step toward import substitution.

The Arjo facility, located in Diga Woreda, was inaugurated in the presence of senior federal officials. Operated by the National Mining Corporation under MIDROC, the plant processes up to 200 tons of coal per hour, supplying washed and dried coal to cement, steel, textile, and other energy-intensive industries.

Ethiopia’s full annual coal demand, which is estimated to be as high as 2.3 million tons, is now satisfied by domestic production. This achievement, according to the Ministry of Mines, significantly reduces the country’s dependence on imports and alleviates foreign exchange constraints.

Construction of the plant was completed within 18 months and has created 250 permanent jobs for the local community. Company officials stated that the facility operates using a chemical-free processing method, positioning it as an environmentally conscious addition to the country’s industrial base.

The Arjo plant forms part of broader efforts to strengthen Ethiopia’s mining and manufacturing ecosystem, reduce external dependency, and support industrial growth under the country’s economic reform agenda.