Ethiopia Grants Mining Production Licenses for Projects Worth Over $4.2 Billion

The government of Ethiopia has issued production licenses to three mining companies with a combined registered investment exceeding $4.2 billion, signaling a major push to expand the country’s mining sector and boost export revenues.

According to the Ministry of Mines (Ethiopia), the licenses were granted after the companies completed regulatory inspections and fulfilled the necessary legal requirements to begin production.

Iron Ore, Potash, and Gold Projects

Among the companies receiving licenses is ZYTB-DAM Steel Manufacturing Co., Ltd., which has been granted an iron ore production license. The company is required to complete factory construction and commence operations within two years.

A potash mining license was awarded to Ethiopian Investment Holdings (EIH), the state-owned investment entity that manages major national enterprises, including Ethiopian Airlines and Ethio Telecom.

Meanwhile, Bero Mining and Trading Co., Ltd. secured a gold production license, also with a two-year timeline to complete development and begin operations.

Potash Development in Afar

The potash project granted to Ethiopian Investment Holdings follows an application submitted in July 2025 to develop a 365-square-kilometer potash reserve located in Dalol Woreda, Afar Region, Ethiopia.

The area lies within the Danakil Depression, which is estimated to contain 11 to 12 billion tons of potash-bearing salt deposits, making it one of the largest undeveloped potash resources globally.

Fertilizer Production Strategy

The potash development is part of a broader fertilizer production strategy being pursued by Ethiopian Investment Holdings. In August 2025, EIH signed a shareholders’ agreement with Dangote Industries Limited to build and operate a major urea fertilizer production complex in Gode, Somali Region, Ethiopia.

Under the agreement, Ethiopian Investment Holdings holds 40 percent ownership, while Dangote Industries retains 60 percent.

The project, estimated at more than $2 billion, aims to produce up to three million metric tons of ammonia-based fertilizers annually, using natural gas from the Calub Gas Field and Hilala Gas Field.

Government Support for Mining Expansion

The production license agreements were previously reviewed and approved by the Council of Ministers (Ethiopia) during its fifth regular session in January. Authorities consider the projects strategic for increasing foreign currency earnings, generating employment, and reducing reliance on imported fertilizers.

Once fully operational, the projects are expected to create significant job opportunities and strengthen the role of the mining sector in Ethiopia’s broader economic development strategy.

source: EBR