Tantalising profit for Ethiopian Mineral Development

By Yohannes Anberbir

Ethiopian Mineral Development S. C (EMD), one of the 10 largest tantalite exporters in the world, has recorded a 167.8 percent net profit increase in the first half of this Ethiopian fiscal year. EMD, reestablished in 1995 as a state-owned share company, planned to make a net profit of 5.9 million birr within this fiscal year from extracting tantalum concentrate and exporting, industrial minerals production, and from exploration, drilling and laboratory analytical services. However, its actual profit after tax was 9.9 million birr.

The company produces industrial minerals such as kaolin, dolomite, quartz, and feldspar that have been supplied for local industries such as soap, paints, ceramics, and glass manufacturing.

EMD has a kaolin processing plant that has a capacity to produce 7,500 tons of kaolin per year and has a kaolin reserve of 225,397 tons. It has also 550,000 tons and two million tons of deposits of quartz and dolomite.

But the export of tantalite concentrate is the main contributor to the profit, according to the document.



The company produces tantalite concentrate in Kenticha area in southern Ethiopia, 550km from Addis Ababa. The company's Kenticha mining plant has a capacity to process 100 tons of ore per hour and a production capacity of 200 tons of tantalite concentrate per annum. It has 45-60 percent of tantalum, which is a high value mineral mainly used for the manufacturing of capacitors and other electronic equipments. China is the main importer of this product.

Though tantalite exports have helped the company to register its historic profit, some geologists argue that the company's profit would be higher if the company built its capacity and exported tantalum by extracting it from tantalite.

"China is now almost the sole importer of this tantalite that has 45 to 60 percent tantalum; the rest contains other minerals suitable for production of electric wires," the source said, explaining that if it was possible to extract the tantalum, the company would profit from the other contents, the source said.

But for now China is enjoying the other contents for free, because the company has agreed only to export tantalite, according to the source

Source: CapitalEthiopia