Ethiopia Opens Gold Refinery With 600-Tonne Capacity
ETHIOPIA · MINING
Key Facts
- —What happened Ethiopia opened a national precious metals refinery on Saturday, 10 October.
- —Where Bole Lemi Special Economic Zone in Addis Ababa, the capital.
- —Capacity More than 600 tonnes of precious metals a year at full capacity.
- —Owners Ethiopian Investment Holdings 51%, Sam Precious Metals 49%.
- —The claim Exports of up to US$80 billion a year are possible, officials say.
- —Still open Cost, accreditation and date of full operation were not disclosed.
Prime Minister Abiy Ahmed wants Ethiopia to sell refined bullion, not raw gold, and to refine metal from across Africa.
Ethiopia opened a national precious metals refinery on Saturday, 10 October, in the Bole Lemi Special Economic Zone of Addis Ababa. Prime Minister Abiy Ahmed, who leads the ruling Prosperity Party, inaugurated the plant.
Fana Media Corporation, a state-aligned broadcaster, said the Ethiopia gold refinery can process more than 600 tonnes of precious metals a year. For foreign buyers and investors, it marks a bid to export finished bullion instead of unrefined gold.
Gold has become a key source of hard currency for Ethiopia since the government floated its currency in July 2024. Officials now want more of the value added at home, before the metal leaves the country.
What Abiy Said at Bole Lemi
Abiy presented the plant as a turning point for the mining sector. “From resource extraction to industrial transformation, we are creating greater value at home,” he said, according to Fana.
In remarks carried by the Ethiopian Broadcasting Corporation (EBC), the state broadcaster, he called the facility one of Africa’s leading refineries. He said the government wants Ethiopia to become a regional hub for refining precious metals.
Abiy said Ethiopia exported gold worth about US$5.6 billion to US$6 billion last year. He said earnings could have reached at least US$10 billion had the country been able to refine its own gold earlier.
He also argued that exporters had been losing value on every shipment. According to EBC, only about 70% of each exported kilogram was counted as gold, while the rest was treated as waste.
That remainder contains silver and other valuable metals, Abiy said. The new plant is meant to recover them and add their value to Ethiopian exports.
The US$80 Billion Figure Comes With Caveats
The most striking number came from Abiy himself. Fana and EBC reported that the refinery could support exports worth up to US$80 billion a year.
The same report stressed that this is potential capacity, not a guaranteed annual export value. It depends on how much gold and other precious metals the plant attracts and processes.
For scale, US$80 billion is roughly 13 to 14 times the gold exports Abiy cited for last year. Reaching it would require large volumes of gold from outside Ethiopia.
Abiy pointed to one way to secure them. EBC reported that Ethiopian Airlines, the state-owned carrier, would use its cargo capacity to bring gold from other African countries for refining.
Who Owns the Ethiopia Gold Refinery
The refinery is a partnership between Ethiopian Investment Holdings (EIH) and Sam Precious Metals. EIH is the state’s sovereign wealth fund, which holds stakes in large public companies such as Ethiopian Airlines.
Fana said EIH holds 51% and Sam Precious Metals, described as an international investor, holds 49%. Officials did not say where Sam Precious Metals is based or how much the plant cost.
The plant will assay and refine gold and cast it into export-ready bullion, according to Fana. It will also produce cast and minted gold and silver bars in various purities.
Fana said the project should improve transparency and confidence in how Ethiopian gold is valued. EBC said trained local professionals run the plant.
The launch came as Abiy assembles what officials call the new Medemer government, named after his philosophy of national “synergy”. On the same day, he appointed 62 state ministers, Fana reported.
What It Means for US Readers
Gold trades in US dollars, so any rise in refined Ethiopian output feeds into the dollar-priced bullion market. Whether US banks and dealers buy the bars is a separate question.
Major markets usually expect refiners to meet London Bullion Market Association (LBMA) Good Delivery standards, which include responsible-sourcing checks. No such accreditation was announced on Saturday.
For holders of Ethiopian debt, more export dollars matter directly. Ethiopia missed a coupon payment on its US$1 billion international bond in December 2023.
There is also a link to US industry: Ethiopian Airlines, Africa’s largest carrier, flies Boeing 777 freighters. Its cargo arm is the one Abiy wants to haul gold to Addis Ababa.
What Is Not Known
Officials did not disclose the investment cost, the plant’s current output or when it will reach full capacity. They also did not name Sam Precious Metals’ home country or its owners.
It is not clear how the US$80 billion potential was calculated, or which period the cited gold export figure covers. No supply deals with other African gold producers were announced.
Fana and EBC carried paraphrased remarks rather than a full transcript. No independent figures on the refinery’s throughput were available on Saturday.
What Comes Next
The next signals to watch are output data, any international accreditation and gold supply agreements with neighbouring producers. Monthly export figures will show whether refined bars replace raw gold shipments.
The launch does not mean Ethiopia’s gold exports will reach US$80 billion. Fana itself described that number as a potential, not a forecast.
Frequently Asked Questions
What did Ethiopia open on 10 October?
Prime Minister Abiy Ahmed inaugurated the National Precious Metals Refinery in the Bole Lemi Special Economic Zone of Addis Ababa. It refines gold and produces gold and silver bars.
How big is the refinery?
State media said it can process more than 600 tonnes of precious metals a year at full capacity. Officials did not say how much it processes today.
Who owns the Ethiopia gold refinery?
Ethiopian Investment Holdings, the state sovereign wealth fund, owns 51%. International investor Sam Precious Metals owns 49%, according to Fana.
Is the US$80 billion export figure a forecast?
No. Officials called it potential export capacity that depends on how much gold the plant attracts, not a guaranteed annual value.
Why does it matter outside Ethiopia?
Gold is priced in US dollars and is one of the main export earners for Ethiopia. Abiy also wants to refine gold flown in from other African countries.
Sources: Fana Media Corporation, refinery launch; Fana, US$80 billion potential; Fana, gold export earnings; Fana, capacity and products; Ethiopian Broadcasting Corporation (Amharic); Fana, state minister appointments (all accessed 10 October 2026).
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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