ADDIS ABABA – MIDROC Investment Group has officially inaugurated its state-of-the-art coal processing facility in the Arjo area of the Oromia Region, marking a strategic shift in Ethiopia’s industrial energy sector. The ceremony was attended by high-ranking officials, including Prime Minister Abiy Ahmed and Oromia Regional President Shimelis Abdisa.

Strategic Import Substitution

In a move aimed at preserving foreign currency reserves, MIDROC’s new plant is designed to replace high-cost coal imports. Traditionally, Ethiopia has relied on coal from South Africa and Australia to fuel its heavy industries. According to the CEO of MIDROC, this facility utilizes 100% local natural resources and advanced processing techniques—requiring no imported chemicals—to produce high-grade industrial fuel.

Technical Specifications and Capacity

The “Beneficiation Plant” represents a significant technological leap for the Ethiopian mining sector:

• Production Volume: The facility has a capacity of 200 tons per hour.
• Energy Efficiency: While typical imported coal averages a calorific value of 5,300, MIDROC’s processed coal reaches up to 6,600, offering a more efficient burn for industrial boilers.
• Precision Engineering: The plant features a density separator system that automatically grades coal quality, ensuring the output meets rigorous international standards.

B2B Supply Chain Integration

The plant has already secured a strong foothold in the domestic market, targeting the energy-intensive cement and paper sectors:

• Cement Sector: MIDROC has already begun supplying coal to Derba Cement and is in the final stages of contract signing with Habesha Cement.
• Broader Industry: The high-quality “fine” coal produced is also being marketed to paper factories and other manufacturers requiring high-performance boiler fuel.

Expanding Investment Footprint

This project marks MIDROC’s first major entry into the Wollega zone. The CEO confirmed that this is just the beginning of a broader expansion strategy in the region, which includes a partnership for tea development in the Bedele area.

By improving the quality of locally sourced coal, MIDROC expects to extend the operational lifespan of industrial machinery across Ethiopia while significantly reducing the country’s trade deficit.

Source Video: MIDROC CEO Message at Inauguration