Wednesday, January 2nd 11:51 AM IST

Ethiopia to boost Gold production this year

# Ethiopia gold  # Tigray region  # Ezana Mining  

The ministry said it was expecting to produce some 6,000 kilogramme of gold from both reserves within the next three years.

ADIS ABABA(BullionStreet): East African nation Ethiopia said efforts were in full swing to explore large deposits of gold found in the central and northern parts of the country.

According to country's Ministry of Mines the gold deposit amounted to 550,000 kilograms of gold which at current prices would be worth over $4 billion and the mine would have a lifespan of 20 years.

The reserves at Werri, in Tigray region, are estimated to be able to provide 18,000 kilogrammes of gold worth about $792 million.

The ministry said it was expecting to produce some 6,000 kilogramme of gold from both reserves within the next three years.

The corporation said the Werri area also had 1.9 million kilogrammes reserves of silver, lead (50.4 million kilogrammes) and zinc (42.4 million kilograms).

The ministry signed a deal with Ezana Mining Development Plc, one of the subsidiary companies under the Endowment Fund For Rehabilitation of Tigray, that would enable the latter to produce gold.

The agreement enables Ezana to produce 2,000Kg of gold within two years at an estimated cost of 393.7 million Br.

Currently, 135 local and foreign investors are running 250 exploration and production projects in Ethiopia.

Ethiopia has prioritized exploration of minerals and oil with more than 20 companies involved in mining currently exploring for gold and oil in the eastern parts of the country.

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