Tigray's Future in Mining: A Tale of Resumption and Controversy
The Tigray region is gearing up to resume its mining activities, a move that has sparked both excitement and concern. Under the leadership of Tadesse Werede, the president of the Tigray Interim Administration (TIA), the region is set to revive its gold mining operations, which had been officially suspended since his appointment. This decision comes with a new directive that outlines strict rules for mining operators.
The directive allows licensed operators to apply for renewal, but it also includes a critical investigation into any illicit mining activities. This means that any operator implicated in such practices will face scrutiny. Meanwhile, permits for construction, mining, and manufacturing that were in the process of approval will be paused for review by the Tigray Mining Bureau.
One of the most intriguing aspects of this development is the fate of foreign mining companies. While the directive doesn't explicitly address them, it does state that investors will need consent from locals and approval from the region's mining bureau to proceed. This leaves several foreign firms, many of whom operate through joint ventures with Ezana Mining Development, in a state of uncertainty as the future of Ezana remains unclear.
The federal government has demanded an audit and restructuring of the Endowment Fund for the Rehabilitation of Tigray (EFFORT) and Ezana, but TPLF members have resisted these demands. This dispute has led to the freezing of bank accounts associated with EFFORT, causing further uncertainty. EFFORT, a conglomerate with 17 companies across various sectors, including mining, has issued a strong statement consenting to an audit, warning that the freeze threatens Tigray's post-war recovery efforts.
The internal strife within the TPLF has led to infighting, with former TIA chief Getachew Reda forming a new political party and ousting Beyene Mekru, the former CEO of EFFORT, from his position. There are fears that EFFORT's resources could be diverted for military purposes, exacerbating tensions between the regional and federal governments. Despite the freeze, reports indicate that gold continues to flow out of Tigray illegally, suggesting that the mining suspension might be a facade for reclaiming sites from licensed operators.
Insiders and miners speculate that Tadesse is redistributing mining sites to his supporters. During Getachew's presidency, there were over 100,000 small-scale and artisanal gold miners in Tigray, along with over 90 large-scale mining companies. However, the Tigray mining bureau has requested the revocation of licenses for nearly 30 large-scale companies, with their project sites taken by military officers as war compensation.
This complex scenario raises questions about the future of mining in Tigray and the potential impact on the region's economy and political landscape. As the story unfolds, the mining industry in Tigray awaits its uncertain future, with both excitement and caution.
