ADDIS ABABA, Ethiopia- Ethiopia has launched a precious metals refinery at Bole Lemi Special Economic Zone, with Prime Minister Abiy Ahmed saying the facility can process more than 600 tonnes of metals annually.
The refinery was established through a partnership between Ethiopian Investment Holdings (EIH), the government’s investment arm, and Sam Precious Metals, a Dubai-headquartered refining company.
The facility is expected to process gold and other precious metals, according to the announcement.
Abiy said the refinery would support local processing, create skilled jobs, boost export earnings and supply the jewellery industry.
He described the project as part of the government’s effort to build industrial capacity around the country’s natural resources.
The launch follows earlier government announcements that Ethiopia was building its first major gold refinery to add value to gold before export.
In April, Abiy said the facility would allow locally produced and regional gold to be processed domestically.
Gold exports drive mining growth
The refinery opens as gold becomes a major source of foreign currency for Ethiopia. The Ethiopian News Agency reported that the country produced 44 tonnes of gold in the 2018 Ethiopian fiscal year.
The government has said local refining could help Ethiopia capture more value from its minerals rather than exporting raw gold.
The facility’s annual capacity, however, covers precious metals broadly; the announcement did not specify how much gold it will process or when it will reach full capacity.
Sam Precious Metals says its services include refining, assaying, testing and minting gold and silver.
The company says it uses traceability and responsible-sourcing processes, which could support the government’s stated aim of making the gold value chain more transparent.
Bole Lemi, on the outskirts of Addis Ababa, is an industrial zone used to attract investment and support manufacturing.
Ethiopia’s Special Economic Zone framework is intended to help the country diversify its economy and strengthen its participation in global trade.
Abiy said the refinery would help position Ethiopia as a regional precious-metals processing hub.
The government has not yet detailed the facility’s operating timetable, workforce size or expected contribution to export earnings.
