Ethiopia inaugurates precious metals refinery with capacity to process more than 600 tonnes annually

Ethiopia has inaugurated a national precious metals refinery with an announced annual processing capacity of more than 600 tonnes, in a move aimed at expanding domestic mineral processing and increasing the value the country derives from its natural resources.

Prime Minister Abiy Ahmed announced the opening of the facility on Saturday. Located in the Bole Lemi Special Economic Zone in Addis Ababa, the refinery was established through a partnership between state-owned Ethiopian Investment Holdings (EIH) and Sam Precious Metals, according to the Ethiopian News Agency.

The facility is intended to strengthen Ethiopia’s mining industry by enabling more precious metals to be processed domestically rather than exported in raw or less-refined form. The government says the project could help increase export earnings, create skilled jobs and support the country’s jewellery industry.

For years, Ethiopia has sought to capture more value from its mineral resources. In April, state broadcaster Ethiopian Broadcasting Corporation reported that the country had largely been exporting raw gold and that the new refinery was expected to help address the lack of domestic processing capacity.

Gold has become increasingly important to Ethiopia’s economy as authorities seek to expand foreign-exchange earnings and formalise the mining sector. The government has also pursued reforms intended to curb illicit gold trading and channel more production through official markets.

The refinery’s announced capacity of more than 600 tonnes covers precious metals and should not be interpreted as 600 tonnes of gold produced annually in Ethiopia. Nor does the inauguration establish that all Ethiopian gold will immediately be processed domestically. Actual throughput will depend on the facility’s operations and the supply of metals available for refining.

The project forms part of a broader effort to move the Ethiopian economy beyond the export of raw materials and towards higher-value industrial activity. If the refinery operates at scale, it could help retain more processing activity within the country and strengthen links between mining, manufacturing and jewellery production.

However, the extent of its economic impact will depend on utilisation rates, access to reliable supplies, international market conditions and the ability to meet buyers’ standards for quality and traceability.

The inauguration marks a significant step in Ethiopia’s plan to expand local mineral processing, although the country’s transition away from raw gold exports will depend on how effectively the new facility is integrated into the wider mining and export sector.