MIDROC Investment Group, owned by Ethiopian-born Saudi billionaire Mohammed Al-Amoudi, is investing over 26 billion Ethiopian birr (approximately US $200 million) to build a modern gold processing factory in Ethiopia. This move is aimed at enhancing the country’s gold production capabilities and supporting the broader economic growth of the region.
The factory will be located in the Bullen District of the Metekel Zone, part of the Benishangul-Gumuz region. The area, known for its natural resources, has faced security challenges in recent years, with ethnic violence affecting local communities. However, reports suggest that the security situation has stabilized, particularly following efforts by local groups such as the Fano forces. These efforts have been aimed at addressing concerns related to the protection of ethnic groups in the region.
MIDROC representatives have reportedly engaged with senior regional government officials in Gelgel Beles town, where they received assurances of full support for the project from local authorities. This includes providing the necessary security and ensuring a favorable environment for the factory’s development and operation.
Surafel Lakew, the Mining Sector Director at MIDROC Investment Group, outlined that the new facility will employ modern techniques for gold extraction and processing, moving away from traditional, small-scale mining practices. This shift is expected to improve efficiency, reduce resource wastage, and increase the revenue generated from gold production in the region. The company aims to bolster Ethiopia’s gold sector with more advanced technology and operational practices.
Once operational, the factory is expected to create over 1,500 jobs, contributing to local employment and offering training opportunities for workers. The plant is also expected to help curb illicit gold mining activities, which have historically undermined the formal sector and resulted in financial losses.
MIDROC’s investment follows the company’s previous setback in 2018 when its mining license for the Lega Dembi gold site in the Oromia region was canceled. The license revocation came amid protests and allegations of environmental pollution due to chemicals used in gold extraction. Despite this, MIDROC continues to play a significant role in Ethiopia’s economy and maintains a diverse portfolio across multiple sectors, including mining, construction, and manufacturing.
With a reported turnover of over US $25 billion and more than 70,000 employees across Ethiopia, MIDROC’s new project is seen as an important contribution to the country’s growing gold sector. The factory is expected to enhance the country’s position as a leading producer of gold in Africa, while offering a model for modern, large-scale mining operations.
The development of the gold processing factory in Benishangul-Gumuz represents a significant investment for MIDROC Investment Group, with potential long-term benefits for Ethiopia’s mining industry and economy. The project is expected to create jobs, boost revenue, and improve the sustainability of gold extraction practices in the country.
