• COUNTRY IN FOCUS
Akobo Minerals’ Segele Mine Akobo Minerals has demonstrated the viability of high-grade, boutique underground mining. Operating in the Gambella region, Akobo Minerals achieved a historic milestone in October 2024 by producing its first gold bar, officially becoming Ethiopia’ s newest industrial gold producer.
The Segele mine is operational, with production ramping up. In October 2025 alone, the mine produced approximately 7kg of gold doré, exceeding monthly targets. The company is currently sinking a vertical shaft to access deeper, high-grade ore bodies. This will allow them to phase out the initial winzes( inclined shafts) and increase throughput. The project received a strategic vote of confidence from the state via Ethiopian Investment Holdings, which has invested in the company to ensure financial stability and support expansion.
Akobo’ s success is critical because it proves that smaller, high-grade deposits can be monetised effectively in Ethiopia’ s remote regions, providing a quick route to cash flow that funds further exploration.
Allied Gold’ s Kurmuk Project The most significant news of early 2026 is the acquisition of Allied Gold by Zijin Mining Group for approximately USD4-billion. While Allied Gold holds assets across Africa, the Kurmuk Gold Project in western Ethiopia is considered a " crown jewel " of the portfolio.
Kurmuk is a massive undertaking with a planned production profile of over 240 000 ounces per year for an initial 10-year mine life. The transition to Zijin ownership brings deep pockets and technical expertise, likely accelerating the development timeline. Zijin has a track record of rapidly constructing mines in complex jurisdictions( such as DRC and Serbia). Extensive drilling at targets such as Dish Mountain and Ashashire has confirmed the continuity of mineralisation, validating the project’ s world-class status.
This acquisition effectively de-risks the project financially and signals the arrival of Chinese majors into Ethiopian gold mining at a tier-one level.
Exploration: The next wave Beyond the " Big Three," a healthy pipeline of exploration projects is advancing, driven by junior miners encouraged by the success of their predecessors.
Australian-listed Askari Metals is actively exploring the Nejo Gold Project in the Wollega zone. Recent updates indicate they are wellfunded to execute their exploration strategy. The Nejo project sits within a prolific gold district, and early sampling has shown highgrade potential like the geology seen at Tulu Kapi.
While gold grabs the headlines, the Ethiopian government is keenly focused on diversifying into industrial minerals to support its import-substitution strategy. Projects in the Danakil Depression continue to be evaluated. With Ethiopia’ s massive agricultural needs, domestic fertiliser production is a national security priority.
The Kenticha belt remains a focal point for critical minerals. Exploration is ongoing to define lithium resources that could feed into the global battery supply chain, although this sector is still in the early exploration / definition stage compared to gold.
Processing capacity and infrastructure A major bottleneck for Ethiopian mining has historically been the lack of in-country processing. This is changing rapidly.
At Tulu Kapi, the construction of the processing plant is a central component of the current USD340-million development. The plant is designed for high recovery rates using standard Carbon-in-Leach( CIL) technology. Akobo Minerals commissioned their processing plant in mid-2024. It is a compact, modular facility designed for the specific metallurgy of the Segele high-grade ore.
Ethiopia’ s " green mining " pitch is gaining traction. The Grand Ethiopian Renaissance Dam( GERD) has come online, providing a surplus of renewable hydroelectric power. Projects like Tulu Kapi are connecting directly to the national grid. This provides a significant cost advantage over mines in other African jurisdictions that rely on expensive diesel generation.
The Ethiopian government has sanctioned cryptocurrency mining as a way to monetise excess electricity and generate foreign exchange. While not " mining " in the geological sense, this sector competes for power allocation but also drives investment in substation and transmission infrastructure that benefits the broader industrial base.
Factors negatively impacting the sector Despite the bullish outlook, significant risks remain. Investors must navigate a complex landscape of security and economic challenges. Regional instability remains the single biggest risk factor. Ongoing clashes between federal forces and regional militias( such as the Fano in Amhara and OLA in Oromia) create a volatile security environment. This impacts logistics, specifically the transport of fuel, equipment, and personnel to remote sites. While most mine sites like Tulu Kapi have dedicated security protocols and government protection, the perception of risk keeps the cost of capital high for Ethiopian projects.
Foreign Exchange and Economics remain challenging, although the birr was floated in 2024 to close the gap between official and parallel rates, hard currency remains scarce. The parallel market premium persists( albeit narrower), and companies often face delays in accessing forex for imports. The currency devaluation has spiked local inflation, increasing the cost of local labour, cement and consumables.
Bureaucracy and Transparency remain a key concern, while federal laws are improving, enforcement at the regional( Woreda) level can be inconsistent. Land access rights often require lengthy negotiation with local administrations that may not always align with federal directives. Foreign investors have occasionally reported aggressive tax assessments and retroactive claims, leading to disputes that can drag on for years.
16 • African Mining • April 2026 www. africanmining. co. za