Iron Potential of Ethiopia

Opportunities for Iron resources development in Ethiopia 2002Eth.C/2010

27

Ironore

This promotion document is dedicated to the late

Haymanot Merhabetsedek whose contribution to

the successful drilling project of Bikilal was so

enormous.


1

At 1,126,829sq.km, Ethiopia

is theworld's27th largest coun

try. Its population has grown

from 33.5 million in 1983 to

73,918,505 inMay2007 (Central

Statistical Agency, 2008, Ethio

pia).

Ethiopia isoneof the fastest

growingeconomies in theworld.

It has shown a fastgrowing an

nualGDPand itwas the fastest

growing nonoildependent Afri

can nation in 2007 and 2008

(http://en.wikipedia. org). The

GDPon2008/09(2001Eth.C)was

443USD (Central Statistical

Agency,2008,Ethiopia).

Iron (Fe) isametallicelement

and composes about 5% of the

Earthscrust.Whenpureitisadark,silverygraymetal.Itisaveryreac

tiveelementandoxidizes(rusts)veryeasily.Thereds,orangesandyel

lowsseeninsomesoilsandonrocksarerelatedtoironoxides.

Elemental Iron (Fe) is ranked fourth in abundance in the earth's

crustandisthemajorconstituentoftheEarth'score.Itrarelyoccursin

natureasanativemetal.

Thepuremetalissilverywhite,veryductile,stronglymagneticandmelts

at1528C(Figure1).Ironaccountsforapproximately95%ofallmetalsused

bymodernindustrialsociety(http://Outernode.pir.sa.gov.au/).

About98%ofironoreisusedtomakesteeloneofthegreatestin

ventionsandmostusefulmaterialsevercreated(Figure3).Powdered

iron is used in metallurgy products, magnets, highfrequency cores,

autoparts,catalyst(ibid).

Ironisessentialtoanimallifeandnecessaryforthehealthofplants.

Thehumanbody is0.006% iron,themajorityofwhich is intheblood.

Bloodcellsrich in ironcarryoxygen from the lungs toallpartsof the

body.Lackofironalsolowersapersonsresistancetoinfection.

1. Introduction

Figure1Iron

(source:http//:radelinks.in)


2

C urrently, there are four main types of iron ore deposits depending on their mineral-ogy. These are magnetite, titanomagnetite, massive hematite and pisolitic ironstone deposits.

Based on the geological setting, the varieties of Iron

-ore deposits can be grouped as described in the fol-lowing subheadings.

2.1 Banded iron deposits

Banded iron formations (BIF) are metamorphosed sedimentary rocks composed predominantly of thinly bedded iron minerals and silica (quartz). The iron min-eral present in such Formation may be the carbonate iron-- siderite, but those used as iron ores contain the oxides magnetite or hematite.

2.2 Magmatic magnetite ore deposits

Occasionally granite and ultrapotassic igneous rocks contain segregated magnetite crystals and form masses of magnetite suitable for economic concentra-tion.

2.3 Hematite ore

Hematite iron ore deposits are currently exploited in all continents, with the largest intensity in South America, Australia and Asia. Most large hematite iron ore deposits are sourced from metasomatically altered banded iron formations and rarely from igneous accu-mulations (Figure 2) (http//:Google-Iron Ore-Wikpedia.org).

Hematite iron is typically

rarer than magnetite bear-ing BIF or other rocks which form its main source or protolith rock, but it is considerably cheaper to process as it generally does not require beneficiation due to its higher iron con-tent. However, hematite ores are harder than mag-netite ores and therefore require considerably more energy to crush and grind if beneficiation is required (http//:Google-Iron Ore-Wikpedia).

2. Geology of Iron-Ore Resources.

Figure2Hematite:themainironoreinBrazilianmines.

Source:http//:GoogleIronOreWikpedia

Figure3Thisheapofironorepellets

willbeusedinsteelproduction

Source:(http//:GoogleIronOreWikpedia)


3

Iron ores are rocks and minerals from which metallic iron can be economically extracted. The ores are usually

rich in iron oxides and vary in color from dark grey, bright

yellow, deep purple, to rusty red. The iron itself is usually

found in the form of magnetite (Fe3O4), hematite (Fe2O3),

goethite (FeO (OH)), limonite (FeO(OH).n(H2O)) or siderite

(FeCO3). Hematite is also known as "natural ore". The

name refers to the early years of mining, when certain

hematite ores contained 66% iron and could be fed directly

into iron making blast furnaces. Iron ore is the raw mate-

rial used to make pig iron, which is one of the main raw

materials to make steel. 98% of the mined iron ore is used

to make steel. Indeed, it has been argued that iron ore is

"more integral to the global economy than any other com-

modity, except perhaps oil.

The major rock types mined for the production of metal-

lic iron are massive hematite, pisolitic goethite/limonite,

which provide a 'high-grade' ore. Banded metasedimentary ironstone, magnetite-rich metasomatite, rocks rich either

in siderite or chamosite provide a 'low-grade' ore.

3.1 High-grade ore

Currently most of the iron ore mined in the world comes

from large deposits of massive hematite rock formed by the

in situ enrichment, most commonly a banded iron forma-

tion (BIF). Two of the best known Australian examples of massive

hematite deposits are Tom Price and Mount Whaleback in

the Hamersley Range, Western Australia. Another type of

high-grade deposit is pisolitic limonite/goethite ore formed

in ancient river channels,

e.g. Yandicoogina, Hamer-

sley Basin, Western Austra-

lia.

High-grade ore generally

has a cut off grade of 60%

Fe. Historically it has pro-

vided a direct feed to smelt-

ers either as a raw lump or

fines, also in a processed

form such as sinter or pel-

lets.

3.2 Low-grade ore

Low-grade ore is a term

applied to iron-rich rocks

with cut-off grades in the

range of 2530% Fe. It was

the main supply of iron ore

for many centuries of the

World's early history of pro-

duction of iron. Since the

1950s North America's

main supply has been low-

grade ore.

The dominant economic

iron mineral in low-grade

ore is magnetite. The ore

may be easily beneficiated

by a process known as wet-

magnetic separation. This

process has been employed

3. Types of iron ores


4

for many decades in North America (Iron Ore-

http://Outernode.pir.sa.gov.au).

Metallic iron is most commonly pro-

duced from the smelting of iron ore to

produce pig iron (http://Outernode.

pir.sa.gov.au/).

Steel is a processed form of pig iron

with impurities such as silicon, phospho-

rus and sulphur removed and with a re-

duction in the carbon content (Figure 4).

Iron metal may be produced from the

smelting of certain iron compounds. Their

concentration in economic proportions is

referred to as 'iron ore'.

Well known uses of iron compounds are:

% Iron sulphate - used as fungicide, the oxalate of iron in photographic develop-

ment; limonite, goethite and hematite as pigments & abrasives, and magnetite in the production of industrial electrodes and also for washing coal.

% Iron chloride and nitrate - used as in-dustrial reagents in the production of several types of inks

% Iron carbonyl - as a catalyst of many chemical reactions

% Micaceous hematite - as a protective paint on steel superstructures.

% Radioactive iron (iron 59) - used in medicine, tracer element in biochemical

and metallurgical research.

% Iron blue - in paints, printing inks, plas-tics, cosmetics (eye shadow), artist col-

ors, laundry blue, paper dyeing, fertilizer

ingredient, baked enamel finishes for

autos and appliances, industrial finishes.

% Black iron oxide - as pigment, in polish-ing compounds, metallurgy, medicine,

magnetic inks, in ferrites for electronics

industry.

Almost all of the iron ore that is mined is used for making steel. Raw iron by itself is not as strong and hard as needed for con-struction and other purposes. So, the raw iron is alloyed with a variety of elements (such as tungsten, manganese, nickel, va-nadium, chromium) to strengthen and harden it, making useful steel for construc-tion, automobiles, and other forms of transportation such as trucks, trains and train tracks.

Figure4BelletsattheEthiopianIronandSteelFactory

4. Uses and Mining of Iron


5

Iron ore occurrences of Ethiopia can be classified based on the geological setting

as follows:

% Metamorphic type is of primary sedi-mentary origin, altered mineralogically

and texturally by subsequent regional

metamorphism.

% Combined metamorphic-contact me-tasomatic type that was formed by a

combination of sedimentation, meta-

morphism and metasomatism. % Residual concentration type, having

resulted from decomposition and

leaching of extrusive or other ferrugi-

nous siliceous rocks % Magmatic type which is genetically re-

lated to the emplacement of igneous

rocks (Harmla, 1966).

The Geological Survey of Ethiopia (GSE)

identified many iron occurrences in Wollega

(Bikilal, Gordana, Worakalu, Chago,

Yubdo, Nejo, Kata, Tsoli, Sirba-Korkandi,

Kiltukara and Wobera Kiltu), Bale(Melka

Arba), Kefa (Mai Gudo and Ghimira), and

Hararghie ( Cherecher and Jijiga) regions

(Appendix 1).

The following are the major iron occur-

rences and deposits so far explored in

Ethiopia (Fig-6).

Name Formula %Fe

Hematite Fe2O3 69.9

Magnetite Fe3O4 74.2

Goethite/Limonite HFeO2 ~ 63

Siderite FeCO3 48.2

Chamosite (Mg,Fe,Al)6(Si,Al)414(OH)8 29.61

Pyrite FeS 46.6

Ilmenite FeTiO3 36.81

Table1Majorironcompounds

Source:IronOrehttp://Outernode.pir.sa.gov.au/

Figure 5 Reinforcement Bar at the Ethiopian Iron and SteelFactory

5. Iron Resources of Ethiopia


6

Figure6LocationMapofIronOccurrencesandDepositsofEthiopia


7

5.1 Bikilal Bikilal area is located 24 km NE of Ghimbi town (Figure 7 and 9). The Bikilal iron de-

posit was explored in detail by the Ethio-Korean Iron Exploration Project (1984-1987).

Trenches (Figure 11) of 1000m length were dug and 54 bore holes to a total depth of

13,000m were drilled (Figure 10).

Figure7LocationmapofBikilalArea.


28


8

A total ore reserve of about 57.8 million tons (C1+C2 reserve category) with average

grade of 23.3% magnetic iron and 41% to-

tal iron was calculated for 27 identified el-

lipsoidal ore bodies, which are intimately

related to a metagabbro and amphibolite

complex (Ethio-Korean Iron Exploration

Project, 1988).

According to (Contech, 1995) the iron ore

reserve is calculated to be 22Mt with an av-

erage grade of 40.7% total iron and 28% of

Magnetic iron.

The Bikilal gabbro body generally con-

sists of olivine gabbro, hornblende gabbro

with an intercalation of hornblendite. The

hornblende gabbro unit is further subdi-

vided into barren and apatite-bearing. The

apatite bearing hornblende gabbro unit is

mainly distributed in the southwestern and

northern part of the target area, with an

EW, NW-SE and NS strike, dipping towards

south and south west at angle of 400-500,

in the southwestern part and from 700-750,

at the northern and northeastern part of

the target area (Figure 8). The Bikilal phos-

phate deposit consists of apatite, magnet-

ite and ilmenite in variable proportions. In

the zone of apatite enrichment, 181 million tons of apatite ore has been estimated with

Figure9Aviewoverthevalley,seenfromBikilal

Mountain

Figure10CoresamplesfromIronOre

Figure11MagnetiteexposuresatBikilal


9

low grade (21.5%) total iron content,

3.1% P2O5, 6.6% TiO2 and 0.04% V2O5

(CONSULT 4 International, 2002).

The iron ore bodies occur as veins with

200m-1400m length, 2-6m width, and 200-

300m depth (Figure 8). The ore contains on

average 30% limonite, 40% magnetite and

30% silicate and accessory sulfides (pyrite,

pyrrhotite and apatite).

The average chemical composition has

been given as 41.1% total iron, (23.3%Fe in

magnetic minerals), 16.7%Tio2, 0.24%V2O5,

36%P2O5 and 0.77%S (CONSULT 4 Interna-

tional ,2002)

Figure12AviewofGelelRiver

Water is available (Fig 12)

from nearby streams and riv-

ers and the dry-weather road

requires maintenance. There is

also adequate labor force

around Gimbi town to carry-

out mining of the Iron at Bi-

kilal. The infrastructure condi-

tions such as power and com-

munications should be studied

to exploit the iron deposit of

Bikilal.

Opportunity


10

5.2 Gordana

The iron deposits of the Wollega region

include the Gordona, Koree, Dima, Wora-

kalu, and Chago occurrences(Figure13-15),

which were investigated in 1963 under a

contract agreement between the Mining In-

dustrial Association (RUDIS, 1964) of the

then Yugoslavia and the Ethiopian govern-

ment.

The Gordana ore body (Figure13) lo-

cated, 16km N of Yubdo, consists of a sin-

gle, exposed ore body striking northerly

and dipping steeply to the west, and ex-

tending for 194m at an average width of

3.5m. The ore is composed of martized

magnetite, which is associated with ferrugi-

nous quartzite. An area of 6km2 including

the village of Dima and Gordana was sur-

veyed (RUDIS, 1964). Two belts of magnetic

anomalies were outlined. The ore reserve of

the main exposure was inferred to be about

250,000 tons of both probable and possible

ores, at an average grade of 66.95% total

iron (Table-2 ) (Hamrla 1966) to a depth of nearly 100m (Masresha et al., 2000).

5.3 Koree

The Koree iron occurrence is located

some 16km south of Yubdo. It occurs with

in the Precambrian rock of Birbir group

consisting of various schists, metasand-

stone, and ferruginous quartzite (Figure

14). The ore outcrop has a length of 200m,

with an assumed extension of 100m

(Masresha et al., 2000). The outcrop forms

a pronounced ridge trending 350N with a

vertical dip. The ore consists of magnetite

and martite blocks with quartzite lamina-

tion. Chip samples showed 71.6% total

iron; Table1(Hamrla 1966).The possible re-serve was inferred to be 150,000-200,000

tons, taking the depth as half the length of

the ore body on surface.

Figure13IronoreexposureatGordana

Figure14IronoreexposureatKoree


11

5.4 Chago

The Chago occurrences is situated 5km

south of Guliso village located along the

road from Ghimbi to Dembidolo. The iron

ore lenses are composed of magnetite and

hematite, and are believed to be syngenetic

with the intercalated ferruginous quartzite

bands (Figure 15). They occur in a se-

quence of pelitic and arenaceous Protero-

zoic rocks (Masresha et al., 2000).The fer-

ruginous quartzite and iron lenses occupy

the core of an anticline. The maximum lens

width, as outlined by trenching, reaches

2m over the full extent of the ore zone ex-

tending for 280m. A reserve of 440,000

tons of high-grade ore (57-68% iron) for

400m length and 5m width, which is un-

derlain by low-grade ore (33% iron content)

was inferred. Later, the ore reserve is re-

duced to 12,000 tons of high grade and

27,000 tons of low grade ore.(ibid.)

A more recent magneto metric survey suggested that this occurrence was non-profitable for even medium-scale mining operations.

Figure15IronoreexposureatChago

T he areas of Gordana, Koree andChago are recommended forsmall scale mining as the resources are

nothugeenough.Waterisavailablefrom

nearby streams and rivers and the dry

weather road requires maintenance.

Thereisalsoadequatelaborforcearound

Ghimbi town to carryoutmining of the

IronatGordana,KoreeandChago.There

fore there is a good opportunity to de

velop these Iron deposits as small scale

miningindustry.

Locality Fe TIO2 SIO2 P2O5 S MnO Kore 71.6 0.0 0.82 0.06 0.09 0.09

Yubdo 70.9 tr 1.2 0.08 tr 0.12

Gor-dana

70.8 tr 3.1 0.03 0.05 0.23

Chago 68.8 tr 1.8 0.14 tr 0.12

Nejo(Kata)

65.2 tr 8.7

Table 2 Chemical analysis results of Iron-ore in western wollega (Hamrla, 1966).


12

5.5 Tsole The Tsole banded Ironstone, located

75 km north of Mendi town, show two par-allel to sub parallel regional extent along the north-south direction. West of Tsole vil-

lage, a massive to banded ironstone trend-

ing NNE-SSW was found in the chlorite

schist that was cut by an intrusive (Figure

16). The iron extends to about one km

strike length and the exposed width is from

4m to 4.5m. The Iron in the Tsole area is of mag-

netite-hematite composition, that grades to

localized limonite due to strong weathering

(Tibebu, 1986).

5.6 Belowteoist locality

Belowteoist iron lies 25km east of the

town Kumruk, east of the Assosa-Kurmuk

road, 7-8km northeast of the Famassari vil-

lage. At the locality the iron ore occurrence

was found in 1982. It belongs to the hill

striking to NE. The area of the deposit is

built by low-grade metamorphosed rocks of

upper proterozoic age. At the locality, the

host rock is represented by different am-

phiboles chlorite and mica schists and

quartzites. In the fractured zones of the

schists, tourmalinization and sulphidiza-

tion are observed. Outcrop of ferruginous quartzite-

hematite with manganese and magnetite is

exposed on the southeastern slope of the

hill over the length of more than 500m.The

width of the outcrop is about 10m. It is dip-

ping to the NW at an angle of 600-650. The

iron ore is banded, fine grained and dark

gray. Ferruginous quartzite may occur to

the northeast and southwest of the area.

On the northwestern slope of the hill frag-

ments of iron rich ores (limonite hematite)

are encountered. Possible reserves of fer-

ruginous quartzite of the locality can be es-

timated at 2,500,000 tons per 100m depth

(N.I. Golivkin et al., 1982).

Figure16IronoreexposureatTsoleOpportunity

T heareaofBelowteoistisrecommendedforsmallscaleselectivemining.Thereisadequatelaborintheareaandthereisagood

opportunity tomine the iron occurrence for

householdutilitiesasthereserveissmall.


13

5.7 Werfedo Iron ore occurrence

Werfedo is located in Oromia region,

Western Harerghe zone, geographically

bounded between 90 0455 -90 08 04 N,

and 410 0543-410 0750E. Werfedo iron

ore body is hosted by marble. The marble is

strongly brecciated and mylonitized in the

proximity of the iron occurrence. Spots of

magnetite and iron sulphide minerals

(0.1cm-0.3 cm in size) are distributed

within the rock. The average grade of the

iron is 42% and the reserve under C2 cate-

gory is estimated to be 20,911 tons (EKIEP, 1990).

5.8 Other Iron ore resources/occurrences

There are also minor occurrences at Dime

(Gamogofa) that is derived from volcanics,

brown to purple and free of quartz. At

depth it is richer in iron, containing 40% to

50% Fe2O3 (Alemayehu, et al., 1978).

Iron ore is also known to be found around

Adwa, the ore type is supposed to be mag-

netite, limonite with inferred resource of

5Mt, and that of Enticho is 14.23Mt.

The Iron ore occurrence of Kaffa region is

mainly associated with magnetite, hematite

and limonite, at the localities of Gamalu-

cho, Garo, Mai Gudo, Ghimira basin,

Kurkura valley, Melka Sedi and Dombowa

with total inferred resource of 47Mt of iron

ore (Appendix1).

TheareaofWerfedoisrecommended

forsmallscaleselectivemining.There

is adequate labor in the area and

there is a good opportunity to mine

the iron occurrence for household

utilitiesasthereserveissmall.


14

6.1 Present Situation of the Country

Ethiopia imports steel and various

iron raw materials up to 500,000 tons per annum /Ethiopian Inland Revenue and Customs Authority/(Table3). Bellets and wire rods (Figures 17 and 18) are imported

from Ukraine, Russia and Turkey, whereas Galvanized wire is imported from

China and Japan.

Source:EthiopianInlandRevenueandCustomsAuthority

The annual iron and steel raw materials input of metal factories from different coun-tries (Table 3) of the country reach up to 500,000 tons. The total production of metal factories annually reaches up to One Million tons. The countrys total reserve at different categories is approximately 100-120 Mt. With the future projected demand twice that of present level of production, the iron ore resource could be sufficient for over 50 years.

6. Market and Trade of Iron-Ore World wide

Figure17BelletsfromEthiopianIronandSteelFactory

Figure18WireRodattheEthiopianIronandSteelFactory

Figure19ReinforcementBarattheEthiopianIronandSteel

Year Unit Steel and Metal Raw materials

2005 ton 415,846.882

2006 ton 374,564.114

2007 ton 522,618.736

2008 ton 482,972.847

2009 ton 581,909.134

Table3Importedsteelandmetalrawmaterials(20052009)


15

It is hereby recommended to exploit the

indigenous iron resources of the country as

import substitution.

6.2 World production and resources

International iron ore trade reached a

new record level in 2008 as exports in-

creased for the seventh year in a row and

reached 882 Mt ( up to 7.8 %). Total iron

ore exports have doubled since 1999. Bra-

zil's exports increased by 4.5 % to 282 Mt

in 2008. The increase was smaller than last

year and pushed Brazil back again to sec-

ond place among iron ore exporting coun-

tries. With over 300 Mt and an increase in

2007 by 16 %; Australia is now again ex-

porting more iron ore than Brazil. Indian

exports grew for the nine consecutive years

and the country is now, at 101.4 Mt, the

third most important exporter. China is

still by far the world's largest iron ore im-

porter. In 2008, its imports were 444 Mt,

an increase by 16 % compared to 2007. Ja-

pan's imports increased by a comparatively

modest 1.1 % to 140 Mt. European im-

ports, which fell by 5 % in 2008, reached

164 Mt, corresponding to 18 % of world im-

ports (Table 9). Iron is the world's most commonly used

metal - steel, of which iron ore is the key

ingredient, represents almost 95% of all

metal used per year. It is used primarily in

structural engineering applications and in

maritime purposes, automobiles, and gen-

eral industrial applications (machinery).

Iron-rich rocks are common worldwide,

but ore-grade commercial mining opera-

tions are dominated by the countries listed

in Table 9. The major constraint to eco-

nomics for iron ore deposits is not neces-

sarily the grade or size of the deposits; be-

cause it is not particularly hard to geologi-

cally prove enough tonnage of the rocks

that exist. The main constraint is the posi-

tion of the iron ore relative to market, the

cost of rail infrastructure to get it to market

and the energy cost required to do so.

Mining iron ore is a high volume low

margin business, as the value of iron is sig-

nificantly lower than base metals. It is

highly capital intensive, and requires sig-

nificant investment in infrastructure such

as rail in order to transport the ore from

the mine to a freight ship. For these rea-

sons, iron ore production is concentrated in

the hands of a few major players (Iron Ore-http://Outernode.pir.sa.gov.au/).

World production averages one billion

metric tons of raw ore annually. The

world's largest producer of iron ore is the

Brazilian mining corporation Vale, followed

by Anglo-Australian companies BHP Billi-

ton and Rio Tinto Group. A further Austra-

lian supplier, Fortes cue Metals Group Ltd

may eventually bring Australia's production


16

to second in the world.

World consumption of iron ore grows

10% per annum on average with the main

consumers being China, Japan, Korea, the United States and the European Un-ion.

China is currently the largest consumer

of iron ore, which made her the world's

largest steel producing country. It is also

the largest importer, buying 52% of the

seaborne trade in iron ore in 2004. China

is followed by Japan and Korea, which con-

sume a significant amount of raw iron ore

and metallurgical coal. In 2006, China pro-

duced 588 million tons of iron ore, with an

annual growth of 38%.

Current world production of iron ore is

dominated by supply from massive hema-

tite deposits.

Ore production in Australia is exclu-

sively from high-grade hematite and pisoli-

tic goethite-limonite deposits, mostly in the

Hamersley Basin region of Western Austra-

lia.

World resources of crude iron ore are

estimated to exceed 800 billion tones con-

taining more than 230 billion tones of iron.

The world's resources are dominated by low

-grade ore. Most significant are resources of BIF

preserved in the remnants of Palaeopro-

terozoic sedimentary basins. The global dis-

tribution of Palaeoproterozoic BIF marks a

unique period in Earth's geological history.

Examples include BIF in the:

Hamersley Basin in Western Australia Lake Superior Region in North America Transvaal Region in South Africa Krivoy Rog Region in the Ukraine Minas Gerais Region in Brazil. Iron oxides of metasomatic origin form a

significant resource. The best example is

the Kiruna deposit in Sweden which is the

world's largest mine developed on a low-

grade, magnetite-rich metasomatite rock.

In South Australia iron oxides of me-

tasomatic origin form a potentially signifi-

cant resource I ron . (O re -h t tp ://Outernode.pir.sa.gov.au).

2005 Local ImportedAluminum 18 708

GalvanizedCoils 339,405IronScrap 432 SteelSheet 997 30,038WireRod 1,505.51

Zinc 2,539Iron(Billet) 1 1,432.37

PigIron 74IronBars 16 973

ChemicalforMetals 1 23

376,697tons

Table 4 Annual Raw Material Consumption (Input) of Metal

Manufacturing Companies (2005).

FDRE Ministry of Trade and Industry.


17

2006 Local ImportedAluminum 40 1,330

GalvanizedCoils

7,466,345 34,560

IronScrap 20 6,733

SteelSheet 344 35,672

WireRod 13,874

Zinc 1,304

Iron(Billet) 9 15,797

PigIron 473

IronBars 1,055 7ChemicalFor

Metals 27 109,777tons


Manufacturing Companies(2006).



Manufacturing Companies (2005-2009).


2007 Local ImportedAluminum 3 557Galvanized

Coils 42,586IronScrap 7,004

SteelSheet 52,532 63,095

WireRod 41 49,688

Zinc 2,878

Iron(Billet) 18,360

PigIron 10 467

IronBars 37 250Chemicalfor

Metals 2,403 180,285tons

Table.7 Annual Raw Material Consumption (Input) of Metal

Manufacturing Companies(2005-2009).


2008 Local ImportedAluminum 310 385,633Galvanized

Coils 18,261IronScrap 6,996 3,410SteelSheet 53 227,032WireRod 3,726 4,694.00

Zinc Iron(Billet)

PigIron 26 86IronBars 961 451

ChemicalForMetals

95 303

639,870tons

Table8 Annual Raw Material Consumption (Input) of Metal

Manufacturing Companies(2005-2009).


2009 Local Imported

Aluminum 1,516

GalvanizedCoils 3,608

IronScrap 5,681

SteelSheet 1,608

WireRod 13 36,350

Zinc 102 18,224Iron(Billet) 1,773

PigIron 8

IronBars 1 232ChemicalFor

Metals 21 67,405tons


18

Table9Productionandconsumption

Country Production

China 520

Australia 270

Brazil 250

India 150

Russia 105

Ukraine 73

UnitedStates 54

SouthAfrica 40

Iran 35

Canada 33

Sweden 24

Venezuela 20

Kazakhstan 15

Mauritania 11

Othercountries 43

Totalworld 1690

(Estimated iron ore production in million metric tons for 2006 according to U.S. Geological Survey)


19

LOCALITY STATUS LONGITUDE LATITUDE ESTIMATED RESERVE

ORE TYPE LITHOLOGY

Adwa (Tigray)

Mineral Occur-rence

38.79 14.14 5 Mt (Adwa+ Axum + Enti-

cho)

Magnetite, Limonite

Gossan related de-posit: Au,Ag, Zn

Aira (Wollega)

Mineral Occur-rence

35.36 9.07 < 10 Mt Hematite Magnetite

Weathered basalt

Assale (Tigray)

Mineral Occur-rence

40.06 14.38 < 10 Mt Magnetite Unspecified ore de-posit type

Beligal (Tigray)

Mineral Occur-rence

39.99 14.39 No data Magnetite, limonite

Unspecified ore de-posit type

Bikilal (Wollega)

Industrial pro-ject

35.80 9.37 57 Mt Magnetite Ore deposit hosted by basic intrusions: Fe, Ti, V. Ni-.Cu, (Au,Co)

Billa (Wollega)

Mineral Occur-rence

35.59 9.34

.

No data Hematite Magnetite- Hematite

Gossan related de-posit: Au, Ag, Zn

Bissidimo (Harar)

Mineral Occur-rence

.12 19 9. 19 No data Hematite Li-monite

Cretaceous sandstone

Chago (Wollega)

Mineral Occur-rence

35.60 9.17 0.20 Mt, 64% Fe Magnetite- Hematite, Limonite- Hematite

Gossan (VMS, MVT, Veins, etc: related deposits: Au, Ag. Zn

Chilachikin (Tigray)

Mineral Occurrence

38.41 13.87 No data Hematite Gossans (VMS. MVT, Veins etc: re-lated deposits: Au, Ag, Zn

Dimma (Wollega)

Mineral Oc-currence

35.58 8.95 0.05 Mt, 65% Fe

Hematite Magnetite. Limonite- Hematite Magnetite-Hematite

Gossan (VMS, MVT. Veins.: Au, Ag, Zn

Appendix 1. Iron Ore occurrence and deposits of Ethiopia (Solomon Tadesse, 2009, Mineral Resources Potential of Ethiopia).


20


ORE TYPE LITHOLOGY

Enticho (Tigray)

Mineral Occurrence

39.12 39.12 14.23 See above Limonite

Famasari (Wollega)

Mineral Occur-rence

65-68% Fe Hematite. Magnetite

Galetti (Harar)

Mineral Occur-rence

41.14 41.14 9.01 No data Hematite. Magnetite, Mar-tite

Gambo (Wollega)

Mineral Occur-rence

35.51 35.51 9.50 No data Magnetite

Gamalucho (Kaffa)

Deposit or prospect

Deposit or pros-pect

37.21 7.59 12,50 Mt Magnetite

Garo (Kaffa) Mineral Occur-rence

Mineral Occur-rence

37.19 7.51 l2.5OMt Hematite Limo-nite

Gato (Mai Gudo) (Kaffa)

Mineral Occur-rence

Mineral Occur-rence

37.17 7.41 0.075 Mt, 40% Fe

Hematite Limonite

Ghimira basin (Kaffa)

Mineral Occur-rence

36.01 7.02 No data Hematite Li-monite

Gossan related ore type

Gordona (Korree) (Wollega)

Deposit 35.54 8.77

0.27 Mt. 63% Fe

Magnetite- Hematite Magnetite


Kata Valley (Wollega)

Mineral Occur-rence

35.62 9.49 0.10 Ml, 69% Fe

Magnetite, Martite

Gossan: (VMS, MVT. related deposits: Au.

Appendix 1 contd.


21


ORE TYPE LITHOLOGY

Kenticha (Sidamo)

Mineral Occur-rence

39.18 5.19 No data Magnetite Ore deposits related to basic-ultrabasic mag-matic rocks

Kunni (Harar)

Mineral Occur-rence

40.94 8 94

No data Hematite Mag-netite

Unspecified ore type

Kurkure Valley (Kaffa)

Mineral Occur-rence

37.28 7.38 No data Hematite Limonite


Like (Kaffa) Mineral Occur-rence

37.29 7.49 No data Hematite Magnetite

Gossan related ore deposits

Melka Arba (Sidamo))

Prospect 39.55 6.32 4.60 Mt Related to basic intrusion

Melka Sedi (Kaffa)

Deposit or Prospect

39.55 7.50 12.50Mt Hematite Magnetite

Laterite-relaled ore Fe. Mn, Ni- Co. Au, Corundum. REE, Nb, Pt

Shakisso (Sidamo)

Mineral Occur-rence

38.63 5 22 No data Magnetite Ore deposits related so basic-ultrabasic mag-matic rocks

Ujau (Harar) Mineral Occurrence

41.42 9.25 No data Hematite- Magnetite

Unspecified ore type

Wcllega Deposit or Prospect

35.31 8.71 4.48 Ml Magnetite. hematite

Banded Iron Formations (BIF Superior Fe

Appendix 1 contd.


22


ORE TYPE LITHOLOGY

Yubdo (Wollega)

Producing small scale

35.49 8.93 0.O5Mt, 71%Fe

Magnetite Laterite-related ore-deposits: Fe, Mn, Ni-Co, Au, Corundum, REE Nb, Pt

Adi Berbere (Tigray)

Mineral Occurrences

38.55 14.36 No data Magnetite Gossan : (VMS, MVT. Veins, etc related deposits; Ay., Ag ,Zn

Gambela- Dembidolo (Wollegal

Prospect or deposit

34.80 8.53 No data Magnetite .

Ore deposits in lay-ered ring complexes(Ural and Alaskan subtypes), PGE, Cr

Gimbi-Daleti (Wollega)

Prospect or deposit

35.05 8.85 No data Magnetite Anorthosite hosted ilmenite and hema-tite ilmenite deposit: Ti, Fe. V. (Cr, Mn, Ni)

Dombowa (Kaffa)

Prospect 12.50 Mt Limonite Laterite related ore deposit

Wankey (Area)

Wabera- Kiltu

(Wollega)

Prospret under (upstream) reconnais-sance

35.27 9.84 No data Volcano sedimentary and sedimentary exhala-tive ore deposits

Belowtuist (Wollega)

Mineral Occurrence

2.50 Mt Magnetite, Hematite Limonite

Ferruginous quartet Art, REE, Pb, Ni, Pt

Worakalu lWoIIcga)

Mineral Occurrences

35.53 9.07 0.05 Mt. 62%Fe

Magnetite- Hamatite

Gossan; (VMS, MVT, Veins, etc related deposits; Au. Ag, Zn

Appendix 1 contd.


23

So far three exploration and one small scale

mining licenses are issued by the Ministry of

MinesandEnergyandoneexplorationlicenseis

underprocessbyOromiaMineralDevelopment

Agencyforironore.

But currently only one exploration license is

holdbyAbyssiniaCementPlcatBidimo locality

(MelekaArbaarea)inBaleZoneandtheothers

arecancelled.

TheBikilalironandassociatedmineralsexplora

tion area is under licensing process, issued by

OromiaMineralDevelopmentAgency.


24

Between1974 and1991private investment

was not allowed in the mineral sector rather

government institutionsweregiventherightto

exploreanddevelop themineralwealthof the

country.Asa resultof thepoliticalchange that

tookplace in1991,anewmarketorientedeco

nomicpolicywas introduced in the country. In

theminingsector,thegovernmentpromulgated

anewminingproclamationandmining income

tax proclamations to encourage the participa

tion of private capital in mineral prospecting,

explorationanddevelopmentactivity.

The Mining Proclamation No. 52/1993, Mining

RegulationsNo.182/1994andIncomeTaxproc

lamations No. 53/1993 were issued to attract

private investment. The proclamations were

consecutivelyamendedsoastobecompetitive

internationallyandinfavouroftheinvestors.

Themajor issuesaddressed in the legisla

tions are: they inviteprivate investment in all

kinds of mineral operations, Provide exclusive

license right (a oneyear prospecting license,

three years exploration licenses, with two re

newalsofoneyeareach,andmining licensefor

tenor twentyyearswithunlimited renewalsof

10 years each), require adequate health and

safetyofemployeesandenvironmentalprotec

tionandenvironmentalimpactstudydepending

on typeandnatureofaproject,guarantee the

licensees right to sell the minerals locally or

abroad,provideexemptionfromcustomsduties

and taxes on equipment, machinery and vehi

clesnecessaryforanymineraloperations,guar

antees theopening andoperationof a foreign

currency account in Ethiopia and retention of

portion of foreign currency earning and remit

tanceofprofits,dividends,principalandinterest

on a foreign loan etc. out of Ethiopia, require

relatively low royalties of 2 % (Mineral water

andconstructionmaterials) to5% (forprecious

stones) ad valoremonproduction site,dispute

settlement through negotiation and interna

tionalarbitration,andprovidelosscarryforward

for ten years (National Report on Mining to

UNCSD,2009).


25

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lishedReport.EIGS.AddisAbaba.BolidenContech.June1995.PrefeasibilityStudyofBikilalIronoreproject,FinalReport,phase1.EIGS.

AddisAbaba.CONSULT 4 International.2002.Bikilal Phosphate Exploration and PreFeasibility Study FinalReport.

EIGS.AddisAbaba.

EthioKoreanIronExplorationproject.September1990.GeologicalandGeophysicalExplorationReport

onKunni,DederandGalletiWerfedo(Hararge).EIGS.AddisAbaba.EthioKorean IronExplorationproject.1999.GeologicalandGeophysicalExploration workonthe iron

oreofMelkaArba.EIGS.AddisAbaba.HaileMichaelFentaw.November2003.GeologyandGeochemistryandEconomicaspectsofApatite

IlmeniteMagnetitebearingmagmaticRocksofMelkaArbaarea.UnpublishedReport.GSE.Addis

Ababa.MasreshaG.SelassieandWolfUweReimold.2000.AReviewofmetallicmineralresourcepotentialof

Ethiopia.Chron.Rech.min.,2000,540.1132.MilanHamrla.December1964.IronoredepositinGollisoYubdokoreeArea(WollegaProviene).Ljubl

jana.SocialistRepublicofYugoslavia.MilanHamrla.1966.TheironandManganeseOredepositsinEthiopia.UnpublishedReport.Ljubljana.

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Wellega,Eritrea,HarrarandKaffaofSocialistEthiopia.EIGS.AddisAbaba.

SaidMohammedandMelkamuMengiste.August2009.ShortreportontheCoalandLateriteIronOc

currencesatDuzi&churchuralocalities(EseraWereda,DawroZone,SNNPRState,SouthernEthiopia).

UnpublishedReport.GSE.AddisAbaba.


26

SolomonTadesse.2009.MineralResourcesPotentialofEthiopia.AddisAbabaUniversityPress.AddisAbaba.StatisticalAbstract2008.CentralStatisticalAgency.AddisAbaba. TibebuTesema.November1986.ReportontheGeologyandIronOccurrenceofWestofTsoliarea.Unpub

lishedReport.GSE.AddisAbaba.TigistuMelka.April2007.ReportonApatiteIlmeniteMagnetiteMineralizationofMelkaArbaarea.Un

publishedReport.GSE.AddisAbaba.

Google/INFOCOMM,MarketInformationIntheCommoditiesArea.

http//:GoogleIronOreWikpedia.org

http://Outernode.pir.sa.gov.au/

http://en.wikipedia.Org

Sourceofinformation:GeologicalSurveyofEthiopia(GSE)

Preparedby:WondafrashMammo;[email protected];

LayoutDesign&copyediting:GeremewNegassa;[email protected]

GeologicalSurveyofEthiopia(GSE)

P.O.Box2302,AddisAbeba,Ethiopia

Tel:(2511)463325

Fax:(2511)463326,712033

Email:[email protected]

Iron Potential of Ethiopia

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