Opal Minings, Can Ethiopia Make Sense of it?

Studies have shown that there are many precious metals used in construction, industry and jewelry in the Amhara National Region. It is said that there are 29 known minerals in the region. Opal is the main mineral in the region and iron and coal are also found in various parts of the region. Similarly, minerals for construction inputs are found in all parts of the state, according to the state’s Mineral Development Promotion Agency.

Public Relations Head of the Amhara State Minerals Development Agency, Yitayew Tesfahun, said Opal is one of the major mineral resources in the state. Opal is widely distributed in three districts of East Amhara Delanta, West Amhara and South Gondar. The mine is becoming a major source of livelihood, especially in Delanta Woreda. It is located in more than sixteen woredas in eastern Amhara.

Although it is not possible to determine the exact amount of opal in the region, it is widely available, especially in eastern Amhara, and is being used from time to time. Youths organized in unions in each woreda are also using opal. The crop has been relatively stable in 2012 due to the cholera epidemic, but is now in good condition.

Opal Market Center is being built in Wegel Health, South Wollo Delanta Woreda, nearing completion, to create a conducive environment for producers. This allows manufacturers to sell their products at no cost and without risking the smuggling business.

The benefits of opal production are enormous, especially in terms of foreign exchange earnings. Over the past ten years, it has imported 7.5 million USD. It has created 345,942 permanent and temporary jobs in terms of job creation. In terms of domestic revenue, more than 212 million 989 thousand revenue has been collected.

According to him, in the first quarter of 2013, opal mining created 6,772 jobs. In this regard, more than 10 million birr has been collected from domestic revenue. In terms of foreign exchange, more than 104 million USD has been collected.

Overall, opal has imported about $ 75 million over the past two decades. This is making a significant contribution in terms of generating foreign exchange and replacing imported and industrial inputs.

If this mineral resource is properly managed and used properly, it will save foreign exchange for industrial inputs. Initial activities are underway to achieve this. This shows that the state and the government are paying attention to the use of the mineral resources. If the mineral resources can be used extensively, its economic contribution can be increased.

One of the problems with the use of opal is the lack of production technology, so the mineral is mostly produced in the traditional way. In terms of market linkages, the fact that the producers are selling their products to Addis Ababa, not the area where they are produced, exposes them to high levels of smuggling. In terms of organization, there is a gap in supporting the producers below.

According to the official, a study has been submitted to the regional government and the Civil Service Commission in accordance with the direction given by the Ministry of Mines and Petroleum to the regional government at the bureau, zonal and woreda level. If the mall is to be built in the same area, this problem is expected to be solved. In collaboration with the Federal Ministry of Mines and Energy, it is necessary to facilitate and train producers in a modern way.

To address the problem of market linkages, the regional government is constructing a mall in accordance with its budget. This is expected to reduce the smuggling trade. It also allows producers to sell their products in the mall without having to come to Addis Ababa. Training is also being done in collaboration with Bahir Dar University on the need to avoid traditional production.