Iron Potential of Ethiopia

Opportunities for Iron resources development in Ethiopia
Ironore
27
2002Eth.C/2010
This promotion document is dedicated to the late

Haymanot Merhabetsedek whose contribution to
the successful drilling project of Bikilal was so
enormous.
2002Eth.C/2010
1. Introduction
At 1,126,829sq.km, Ethiopia
Earthscrust.Whenpureitisadark,silverygraymetal.Itisaveryreac
is the world's 27th largest coun
tiveelementandoxidizes(rusts)veryeasily.Thereds,orangesandyel
try. Its population has grown
lowsseeninsomesoilsandonrocksarerelatedtoironoxides.
from 33.5 million in 1983 to
73,918,505 in May 2007 (Central
Elemental Iron (Fe) is ranked fourth in abundance in the earth's
Statistical Agency, 2008, Ethio
crustandisthemajorconstituentoftheEarth'score.Itrarelyoccursin
pia).
natureasanativemetal.
Ethiopia is one of the fastest
Thepuremetalissilverywhite,veryductile,stronglymagneticandmelts
growing economies in the world.
at1528C(Figure1).Ironaccountsforapproximately95%ofallmetalsused
It has shown a fastgrowing an
bymodernindustrialsociety(http://Outernode.pir.sa.gov.au/).
nual GDP and it was the fastest
growing nonoildependent Afri
About98%ofironoreisusedtomakesteeloneofthegreatestin
can nation in 2007 and 2008
ventionsandmostusefulmaterialsevercreated(Figure3).Powdered
(http://en.wikipedia. org). The
iron is used in metallurgy products, magnets, highfrequency cores,
GDPon2008/09(2001Eth.C)was
autoparts,catalyst(ibid).
443USD
(Central
Statistical
Agency,2008,Ethiopia).
Iron (Fe) is a metallic element

and composes about 5% of the
Ironisessentialtoanimallifeandnecessaryforthehealthofplants.
Thehumanbodyis0.006%iron,themajorityofwhichisintheblood.
Blood cells rich in iron carry oxygen from the lungs to all parts of the
body.Lackofironalsolowersapersonsresistancetoinfection.
Figure1Iron
(source:http//:radelinks.in)
1
2002Eth.C/2010
2. Geology of Iron-Ore Resources.

urrently, there are four main types of iron
ore deposits depending on their mineralogy. 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 following 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 mineral 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 concentration.
Figure2Hematite:themainironore
inBrazilianmines.
Source:http//:GoogleIronOreWikpedia
Hematite iron is typically

rarer than magnetite bearing 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 content. However, hematite
ores are harder than magnetite ores and therefore
require considerably more
energy to crush and grind if
beneficiation is required
(http//:Google-Iron
OreWikpedia).
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 accumulations (Figure 2) (http//:Google-Iron Ore-Wikpedia.org).
2
Figure3Thisheapofironorepellets
willbeusedinsteelproduction
Source:(http//:GoogleIronOreWikpedia)
3. Types of iron ores

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 material used to make pig iron, which is one of the main raw
2002Eth.C/2010
in ancient river channels,
e.g. Yandicoogina, Hamersley Basin, Western Australia.
High-grade ore generally
has a cut off grade of 60%
Fe. Historically it has provided a direct feed to smelters either as a raw lump or
fines, also in a processed
form such as sinter or pellets.
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 commodity, except perhaps oil.
3.2 Low-grade ore

Low-grade ore is a term
applied to iron-rich rocks
The major rock types mined for the production of metallic 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.
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 production of iron. Since the
1950s
North
America's
3.1 High-grade ore
main supply has been low-
Currently most of the iron ore mined in the world comes
grade ore.
from large deposits of massive hematite rock formed by the

in situ enrichment, most commonly a banded iron forma-
The dominant economic

iron mineral in low-grade
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
3
ore is magnetite. The ore

may be easily beneficiated
by a process known as wetmagnetic separation. This
process has been employed
2002Eth.C/2010
for many decades in North America (Iron Ore-
ment; limonite, goethite and hematite as
http://Outernode.pir.sa.gov.au).
pigments & abrasives, and magnetite in

the production of industrial electrodes
and also for washing coal.
Iron chloride and nitrate - used as in-
4. Uses and Mining of Iron
dustrial reagents in the production of

several types of inks
Metallic iron is most commonly pro-
Iron carbonyl - as a catalyst of many
duced from the smelting of iron ore to
chemical reactions
produce pig iron (http://Outernode.
Micaceous hematite - as a protective
pir.sa.gov.au/).
paint on steel superstructures.

Radioactive iron (iron 59) - used in
medicine, tracer element in biochemical
and metallurgical research.
Iron blue - in paints, printing inks, plastics, cosmetics (eye shadow), artist colors, laundry blue, paper dyeing, fertilizer
ingredient, baked enamel finishes for
autos and appliances, industrial finishes.
Black iron oxide - as pigment, in polishing compounds, metallurgy, medicine,
Figure4BelletsattheEthiopianIronandSteelFactory
magnetic inks, in ferrites for electronics

industry.
Steel is a processed form of pig iron

with impurities such as silicon, phospho-
Almost all of the iron ore that is mined is
rus and sulphur removed and with a re-
used for making steel. Raw iron by itself is
duction in the carbon content (Figure 4).
not as strong and hard as needed for con-
Iron metal may be produced from the
struction and other purposes. So, the raw

iron is alloyed with a variety of elements
smelting of certain iron compounds. Their
(such as tungsten, manganese, nickel, va-
concentration in economic proportions is
nadium, chromium) to strengthen and
referred to as 'iron ore'.
harden it, making useful steel for construction, automobiles, and other forms of
Well known uses of iron compounds are:
transportation such as trucks, trains and
Iron sulphate - used as fungicide, the
train tracks.
oxalate of iron in photographic develop4
2002Eth.C/2010
5. Iron Resources of Ethiopia

Table1Majorironcompounds
Name
Formula
Iron ore occurrences of Ethiopia can be

classified based on the geological setting
%Fe
as follows:
Hematite
Fe2O3
69.9
Magnetite
Fe3O4
74.2
mentary origin, altered mineralogically
Goethite/Limonite HFeO2
~ 63
and texturally by subsequent regional
Siderite
FeCO3
48.2
metamorphism.
Chamosite
(Mg,Fe,Al)6(Si,Al)414
(OH)8
29.61
Pyrite
FeS
46.6
Ilmenite
FeTiO3
36.81
Metamorphic type is of primary sedi-
Combined metamorphic-contact metasomatic type that was formed by a

combination of sedimentation, metamorphism and metasomatism.
Residual concentration type, having
resulted
Source:IronOrehttp://Outernode.pir.sa.gov.au/
from
decomposition
and
leaching of extrusive or other ferruginous siliceous rocks

Magmatic type which is genetically related 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 occurFigure 5 Reinforcement Bar at the Ethiopian Iron and Steel
Factory
rences and deposits so far explored in

Ethiopia (Fig-6).
Figure6LocationMapofIronOccurrencesandDepositsofEthiopia
2002Eth.C/2010
2002Eth.C/2010
5.1 Bikilal
Bikilal area is located 24 km NE of Ghimbi town (Figure 7 and 9). The Bikilal iron deposit 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.
7
28
2002Eth.C/2010
2002Eth.C/2010
erage grade of 40.7% total iron and 28% of

Magnetic iron.
The Bikilal gabbro body generally consists of olivine gabbro, hornblende gabbro
with an intercalation of hornblendite. The
hornblende gabbro unit is further subdivided into barren and apatite-bearing. The
apatite bearing hornblende gabbro unit is
mainly distributed in the southwestern and
Figure9Aviewoverthevalley,seenfromBikilal
northern part of the target area, with an
Mountain
EW, NW-SE and NS strike, dipping towards
A total ore reserve of about 57.8 million
south and south west at angle of 400-500,
tons (C1+C2 reserve category) with average
in the southwestern part and from 700-750,
grade of 23.3% magnetic iron and 41% to-
at the northern and northeastern part of
tal iron was calculated for 27 identified el-
the target area (Figure 8). The Bikilal phos-
lipsoidal ore bodies, which are intimately
phate deposit consists of
related to a metagabbro and amphibolite
ite and ilmenite in variable proportions. In
complex (Ethio-Korean Iron Exploration
the zone of apatite enrichment, 181 million
Project, 1988).
tons of apatite ore has been estimated with
apatite, magnet-
Figure10CoresamplesfromIronOre
According to (Contech, 1995) the iron ore

reserve is calculated to be 22Mt with an av-
Figure11MagnetiteexposuresatBikilal

low
grade
(21.5%)
total
iron
content,
2002Eth.C/2010
36%P2O5 and 0.77%S (CONSULT 4 Interna-
3.1% P2O5, 6.6% TiO2 and 0.04% V2O5
tional ,2002)
(CONSULT 4 International, 2002).
Opportunity
The iron ore bodies occur as veins with
200m-1400m length, 2-6m width, and 200300m depth (Figure 8). The ore contains on
Water is available (Fig 12)
average 30% limonite, 40% magnetite and
from nearby streams and riv-
30% silicate and accessory sulfides (pyrite,
ers and the dry-weather road
pyrrhotite and apatite).
requires maintenance. There is

also adequate labor
force
around Gimbi town to carryout mining of the Iron at
Bi-
kilal. The infrastructure conditions such as power and communications should be studied
to exploit the iron deposit of
Bikilal.
Figure12AviewofGelelRiver
The average chemical composition has

been given as 41.1% total iron, (23.3%Fe in
magnetic minerals), 16.7%Tio2, 0.24%V2O5,

5.2 Gordana
2002Eth.C/2010
iron (Table-2 )
(Hamrla 1966) to a depth
of nearly 100m (Masresha et al., 2000).
The iron deposits of the Wollega region

include the Gordona, Koree, Dima, Wora-
5.3 Koree
kalu, and Chago occurrences(Figure13-15),

which were investigated in 1963 under a
The Koree iron occurrence is located
contract agreement between the Mining In-
some 16km south of Yubdo. It occurs with
dustrial Association (RUDIS, 1964) of the
in the Precambrian rock of Birbir group
then Yugoslavia and the Ethiopian govern-
consisting of various schists, metasand-
ment.
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 lamination. Chip samples showed 71.6% total
iron; Table1(Hamrla 1966).The possible reserve was inferred to be 150,000-200,000
Figure13IronoreexposureatGordana
tons, taking the depth as half the length of

The Gordana ore body (Figure13)
lo-
the ore body on surface.
cated, 16km N of Yubdo, consists of a single, exposed ore body striking northerly
and dipping steeply to the west, and extending for 194m at an average width of
3.5m. The ore is composed of martized
magnetite, which is associated with ferruginous quartzite. An area of 6km2 including
the village of Dima and Gordana was surveyed (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
Figure14IronoreexposureatKoree
ores, at an average grade of 66.95% total

10

5.4 Chago
A more recent magneto metric survey

suggested that this occurrence was nonprofitable for even medium-scale mining
operations.
The Chago occurrences is situated 5km

south
2002Eth.C/2010
of Guliso village located along the
road from Ghimbi to Dembidolo. The iron
Table 2 Chemical analysis results of Iron-ore in western
ore lenses are composed of magnetite and
wollega (Hamrla, 1966).
hematite, and are believed to be syngenetic
Locality
with the intercalated ferruginous quartzite
Fe
TIO2
SIO2
P2O5
MnO
Kore
71.6
0.0
0.82
0.06
0.09
0.09
bands (Figure 15). They occur in a se-
Yubdo
70.9
tr
1.2
0.08
tr
0.12
quence of pelitic and arenaceous Protero-
Gor-
70.8
tr
3.1
0.03
0.05
0.23
zoic rocks (Masresha et al., 2000).The fer-
dana
Chago
68.8
tr
1.8
0.14
tr
0.12
ruginous quartzite and iron lenses occupy
Nejo
65.2
tr
8.7
the core of an anticline. The maximum lens
(Kata)
width, as outlined by trenching, reaches

2m over the full extent of the ore zone extending 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 reduced to 12,000 tons of high grade
and
27,000 tons of low grade ore.(ibid.)
he areas of Gordana, Koree and

Chago are recommended for
small scale mining as the resources are

nothugeenough.Waterisavailablefrom
nearby streams and rivers and the dry
weather road requires maintenance.
Thereisalsoadequatelaborforcearound
Ghimbi town to carryout mining of the
IronatGordana,KoreeandChago.There
fore there is a good opportunity to de
velop these Iron deposits as small scale
Figure15IronoreexposureatChago
miningindustry.
11

5.5 Tsole
2002Eth.C/2010
was found in 1982. It belongs to the hill

striking to NE. The area of the deposit is
The Tsole banded Ironstone, located
built by low-grade metamorphosed rocks of
75 km north of Mendi town, show two par-
upper proterozoic age. At the locality, the
allel to sub parallel regional extent along
host rock is represented by different am-
the north-south direction. West of Tsole vil-
phiboles chlorite and mica schists and
lage, a massive to banded ironstone trend-
quartzites. In the fractured zones of the
ing NNE-SSW was found in the chlorite
schists, tourmalinization and
schist that was cut by an intrusive (Figure
sulphidiza-
tion are observed.
16). The iron extends to about one km

strike length and the exposed width is from
Outcrop
4m to 4.5m.
of
ferruginous
quartzite-
hematite with manganese and magnetite is

exposed on the southeastern slope of the
The Iron in the Tsole area is of mag-
hill over the length of more than 500m.The
netite-hematite composition, that grades to
width of the outcrop is about 10m. It is dip-
localized limonite due to strong weathering
ping to the NW at an angle of 600-650. The
(Tibebu, 1986).
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 fragments of iron rich ores (limonite hematite)
are encountered. Possible reserves of ferruginous quartzite of the locality can be estimated at 2,500,000 tons per 100m depth
(N.I. Golivkin et al., 1982).
Figure16IronoreexposureatTsole
Opportunity
5.6 Belowteoist locality

Belowteoist iron lies 25km east of the
heareaofBelowteoistisrecommended
forsmallscaleselectivemining.Thereis
adequatelaborintheareaandthereisagood
town Kumruk, east of the Assosa-Kurmuk
opportunity to mine the iron occurrence for
road, 7-8km northeast of the Famassari vil-
householdutilitiesasthereserveissmall.
lage. At the locality the iron ore occurrence

12

5.7 Werfedo Iron ore occurrence
2002Eth.C/2010
5.8 Other Iron ore resources/

occurrences
Werfedo is located in Oromia region,

geographically
There are also minor occurrences at Dime
bounded between 90 0455 -90 08 04 N,
(Gamogofa) that is derived from volcanics,
and 410 0543-410 0750E. Werfedo iron
brown to purple and free of quartz. At
ore body is hosted by marble. The marble is
depth it is richer in iron, containing 40% to
strongly brecciated and mylonitized in the
50% Fe2O3 (Alemayehu, et al., 1978).
Western
Harerghe
zone,
proximity of the iron occurrence. Spots of

minerals
Iron ore is also known to be found around
(0.1cm-0.3 cm in size) are distributed
Adwa, the ore type is supposed to be mag-
within the rock. The average grade of the
netite, limonite with inferred resource of
iron is 42% and the reserve under C2 cate-
5Mt, and that of Enticho is 14.23Mt.
magnetite
and
iron
sulphide
gory is estimated to be 20,911 tons

The Iron ore occurrence of Kaffa region is
(EKIEP, 1990).
mainly associated with magnetite, hematite

and limonite, at the localities of Gamalucho, 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.
13
2002Eth.C/2010
6. Market and Trade of Iron-Ore World wide

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
Figure18WireRodattheEthiopianIronandSteelFactory
China and Japan.
The annual iron and steel raw materials

input of metal factories from different countries (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 100120 Mt. With the future projected demand
twice that of present level of production,
the iron ore resource could be sufficient for
over 50 years.
Table3Importedsteelandmetalrawmaterials
(20052009)
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
Source:EthiopianInlandRevenueandCustomsAuthority
Figure17BelletsfromEthiopianIronandSteelFactory
Figure19ReinforcementBarattheEthiopianIronandSteel
14

It is hereby recommended to exploit the
2002Eth.C/2010
eral industrial applications (machinery).
indigenous iron resources of the country as

import substitution.
Iron-rich rocks are common worldwide,

but ore-grade commercial mining opera-
6.2 World production and resources
tions are dominated by the countries listed
International iron ore trade reached a
in Table 9. The major constraint to eco-
new record level in 2008 as exports in-
nomics for iron ore deposits is not neces-
creased for the seventh year in a row and
sarily the grade or size of the deposits; be-
reached 882 Mt ( up to 7.8 %). Total iron
cause it is not particularly hard to geologi-
ore exports have doubled since 1999. Bra-
cally prove enough tonnage of the rocks
zil's exports increased by 4.5 % to 282 Mt
that exist. The main constraint is the posi-
in 2008. The increase was smaller than last
tion of the iron ore relative to market, the
year and pushed Brazil back again to sec-
cost of rail infrastructure to get it to market
ond place among iron ore exporting coun-
and the energy cost required to do so.
tries. With over 300 Mt and an increase in

2007 by 16 %; Australia is now again ex-
Mining iron ore is a high volume low
porting more iron ore than Brazil. Indian
margin business, as the value of iron is sig-
exports grew for the nine consecutive years
nificantly lower than base metals. It is
and the country is now, at 101.4 Mt, the
highly capital intensive, and requires sig-
third most important exporter. China is
nificant investment in infrastructure such
still by far the world's largest iron ore im-
as rail in order to transport the ore from
porter. In 2008, its imports were 444 Mt,
the mine to a freight ship. For these rea-
an increase by 16 % compared to 2007. Ja-
sons, iron ore production is concentrated in
pan's imports increased by a comparatively
the hands of a few major players (Iron Ore-
modest 1.1 % to 140 Mt. European im-
http://Outernode.pir.sa.gov.au/).
ports, which fell by 5 % in 2008, reached

World production averages one billion
164 Mt, corresponding to 18 % of world im-
metric tons of raw ore annually. The
ports (Table 9).
world's largest producer of iron ore is the
Iron is the world's most commonly used
Brazilian mining corporation Vale, followed
metal - steel, of which iron ore is the key
by Anglo-Australian companies BHP Billi-
ingredient, represents almost 95% of all
ton and Rio Tinto Group. A further Austra-
metal used per year. It is used primarily in
lian supplier, Fortes cue Metals Group Ltd
structural engineering applications and in
may eventually bring Australia's production
maritime purposes, automobiles, and gen15

to second in the world.
2002Eth.C/2010
preserved in the remnants of Palaeoproterozoic sedimentary basins. The global dis-
World consumption of iron ore grows
tribution of Palaeoproterozoic BIF marks a
10% per annum on average with the main
unique period in Earth's geological history.
consumers being China, Japan, Korea,
Examples include BIF in the:
the United States and the European Un-
Hamersley Basin in Western Australia
ion.
Lake Superior Region in North America
China is currently the largest consumer
Transvaal Region in South Africa
of iron ore, which made her the world's
Krivoy Rog Region in the Ukraine
largest steel producing country. It is also
Minas Gerais Region in Brazil.
the largest importer, buying 52% of the
Iron oxides of metasomatic origin form a
seaborne trade in iron ore in 2004. China
significant resource. The best example is
is followed by Japan and Korea, which con-
the Kiruna deposit in Sweden which is the
sume a significant amount of raw iron ore
world's largest mine developed on a low-
and metallurgical coal. In 2006, China pro-
grade, magnetite-rich metasomatite rock.
duced 588 million tons of iron ore, with an

annual growth of 38%.
In South Australia iron oxides of metasomatic origin form a potentially signifi-
Current world production of iron ore is

dominated by supply from massive hema-
cant
resource
Iron.(Ore-http://
tite deposits.
Outernode.pir.sa.gov.au).
Ore production in Australia is excluTable 4 Annual Raw Material Consumption (Input) of Metal
sively from high-grade hematite and pisoli-
Manufacturing Companies (2005).
tic goethite-limonite deposits, mostly in the
FDRE Ministry of Trade and Industry.
Hamersley Basin region of Western Australia.

World resources of crude iron ore are
estimated to exceed 800 billion tones containing more than 230 billion tones of iron.
The world's resources are dominated by low
-grade ore.
Most significant are resources of BIF
16
2005
Local
Imported
Aluminum
GalvanizedCoils
IronScrap
SteelSheet
WireRod
Zinc
Iron(Billet)
PigIron
IronBars
18
432
997
16
708
339,405
30,038
1,505.51
2,539
1,432.37
74
973
ChemicalforMetals
23
376,697tons
2002Eth.C/2010
Table 5 Annual Raw Material Consumption (Input) of Metal
Table.7 Annual Raw Material Consumption (Input) of Metal
Manufacturing Companies(2006).
Manufacturing Companies(2005-2009).
2006
Local
Imported
Aluminum
Galvanized
Coils
IronScrap
40
7,466,34
5
20
1,330
34,560
6,733
SteelSheet
WireRod
Zinc
344
35,672
13,874
1,304
Iron(Billet)
15,797
PigIron
473
IronBars
ChemicalFor
Metals
1,055
27
109,777tons
2008
Local
Imported
Aluminum
Galvanized
Coils
IronScrap
SteelSheet
WireRod
Zinc
Iron(Billet)
PigIron
IronBars
310
385,633
6,996
53
3,726
26
961
95
18,261
3,410
227,032
4,694.00
86
451
639,870tons
ChemicalFor
Metals
303
Table8 Annual Raw Material Consumption (Input) of Metal
Table 6 Annual Raw Material Consumption (Input) of Metal
Manufacturing Companies(2005-2009).
Manufacturing Companies (2005-2009).
2007
Local
Imported
Aluminum
Galvanized
Coils
IronScrap
SteelSheet
WireRod
Zinc
Iron(Billet)
PigIron
IronBars
Chemicalfor
Metals
557
7,004
52,532
41
10
37
42,586
63,095
49,688
2,878
18,360
467
250
2,403
180,285tons
17
2009
Aluminum
Local
Imported
1,516
GalvanizedCoils
IronScrap
SteelSheet
WireRod
Zinc
Iron(Billet)
PigIron
IronBars
ChemicalFor
Metals
1,608
13
102
8
1
3,608
5,681
36,350
18,224
1,773
232
21
67,405tons

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)
18
2002Eth.C/2010
2002Eth.C/2010
Appendix 1. Iron Ore occurrence and deposits of Ethiopia

(Solomon Tadesse, 2009, Mineral Resources Potential of Ethiopia).
LOCALITY
STATUS
LONGITUDE
LATITUDE
ESTIMATED
RESERVE
ORE TYPE
LITHOLOGY
Mineral Occurrence
38.79
14.14
5 Mt (Adwa+
Axum + Enticho)
Magnetite,
Limonite
Gossan related deposit: Au,Ag, Zn
Aira
(Wollega)
Mineral Occurrence
35.36
9.07
< 10 Mt
Hematite
Magnetite
Weathered
basalt
Assale
(Tigray)
Mineral Occurrence
40.06
14.38
< 10 Mt
Magnetite
Unspecified ore deposit type
Beligal
(Tigray)
Mineral Occurrence
39.99
14.39
No data
Magnetite,
limonite
Unspecified ore deposit type
Bikilal
(Wollega)
Industrial project
35.80
9.37
57 Mt
Magnetite
Ore deposit hosted by

basic intrusions: Fe,
Ti, V. Ni-.Cu,
(Au,Co)
Billa
(Wollega)
Mineral Occurrence
35.59
No data
Hematite
MagnetiteHematite
Gossan related deposit: Au, Ag, Zn
Bissidimo
(Harar)
Mineral Occurrence
.12 19
9. 19
No data
Hematite Limonite
Cretaceous sandstone
Chago
(Wollega)
Mineral Occurrence
35.60
9.17
Chilachikin
(Tigray)
Mineral
Occurrence
38.41
13.87
35.58
8.95
Adwa
(Tigray)
Dimma
(Wollega)
Mineral Occurrence
9.34
.
19
0.20 Mt, 64% Fe MagnetiteHematite,

LimoniteHematite
No data
0.05 Mt, 65%

Fe
Gossan (VMS, MVT,

Veins, etc: related
deposits: Au, Ag. Zn
Hematite
Gossans (VMS.
MVT, Veins etc: related deposits: Au,
Ag, Zn
Hematite
Magnetite.
LimoniteHematite
MagnetiteHematite
Gossan (VMS,
MVT. Veins.:
Au, Ag, Zn
2002Eth.C/2010
Appendix 1 contd.
LOCALITY
STATUS
LONGITUDE
LATITUDE
ESTIMATED
RESERVE
ORE TYPE
LITHOLOGY
Enticho
(Tigray)
Mineral
Occurrence
39.12
39.12
14.23
See above
Limonite
Famasari
(Wollega)
Mineral Occurrence
65-68% Fe
Hematite.
Magnetite
Galetti
(Harar)
Mineral Occur- 41.14

rence
41.14
9.01
No data
Hematite.
Magnetite, Martite
Gambo
(Wollega)

rence
35.51
9.50
No data
Magnetite
Gamalucho
(Kaffa)
Deposit or
prospect
37.21
7.59
12,50 Mt
Magnetite
Garo (Kaffa)
Mineral Occur- Mineral Occurrence

rence
37.19
7.51
l2.5OMt
Hematite Limonite
Gato (Mai
Gudo)
(Kaffa)
Mineral Occur- Mineral Occurrence

rence
37.17
7.41
0.075 Mt, 40%

Fe
Hematite
Limonite
Ghimira basin
(Kaffa)

rence
7.02
No data
Hematite Limonite
Gossan related
ore type
Gordona
(Korree)
(Wollega)
Deposit
8.77
0.27 Mt. 63%

Fe
MagnetiteHematite
Magnetite
Gossan related
ore type
Kata Valley
(Wollega)

rence
0.10 Ml, 69%

Fe
Magnetite,
Martite
Gossan: (VMS,
MVT. related
deposits: Au.
Deposit or prospect
35.54
9.49
20
2002Eth.C/2010
Appendix 1 contd.
LOCALITY
STATUS
LONGITUDE
Kenticha
(Sidamo)

rence
Kunni
(Harar)

rence
LATITUDE
ESTIMATED
RESERVE
ORE TYPE
LITHOLOGY
5.19
No data
Magnetite
Ore deposits
related to basicultrabasic magmatic rocks
No data
Hematite Mag- Unspecified

netite
ore type
8 94
Kurkure Valley Mineral Occur- 37.28

(Kaffa)
rence
7.38
No data
Hematite
Limonite
Gossan
related ore type
Like (Kaffa)

rence
7.49
No data
Hematite
Magnetite
Gossan related
ore deposits
Melka Arba
(Sidamo))
Prospect
39.55
6.32
4.60 Mt
Melka Sedi
(Kaffa)
Deposit or
Prospect
39.55
7.50
12.50Mt
Hematite
Magnetite
Laterite-relaled
ore Fe. Mn, NiCo. Au,
Corundum.
REE, Nb, Pt
Shakisso
(Sidamo)

rence
5 22
No data
Magnetite
Ore deposits
related so basicultrabasic magmatic rocks
Ujau (Harar)
Mineral
Occurrence
41.42
9.25
No data
HematiteMagnetite
Unspecified ore
type
Wcllega
Deposit or
Prospect
35.31
8.71
4.48 Ml
Magnetite.
hematite
Banded Iron
Formations
(BIF Superior
Fe
21
Related to basic
intrusion
2002Eth.C/2010
Appendix 1 contd.
LOCALITY
Worakalu
lWoIIcga)
STATUS
LATITUDE
ESTIMATED
RESERVE
ORE TYPE
LITHOLOGY
35.53
9.07
0.05 Mt.
62%Fe
MagnetiteHamatite
Gossan; (VMS,
MVT, Veins, etc
related deposits; Au.
Ag, Zn
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
GambelaDembidolo
(Wollegal
Prospect or
deposit
34.80
8.53
No data
Magnetite
Ore deposits in layered ring complexes

(Ural and Alaskan
subtypes), PGE, Cr
Gimbi-Daleti
(Wollega)
Prospect or
deposit
Yubdo
(Wollega)
Mineral
Occurrences
LONGITUDE
Dombowa
(Kaffa)
Prospect
Wankey
(Area)
WaberaKiltu
(Wollega)
Prospret
under
(upstream)
reconnaissance
Belowtuist
(Wollega)
Mineral
Occurrence
35.05
35.27
8.85
9.84
No data
Magnetite
Anorthosite hosted
ilmenite and hematite ilmenite deposit:
Ti, Fe. V. (Cr, Mn,
Ni)
12.50 Mt
Limonite
Laterite related ore

deposit
No data
2.50 Mt
22
Volcano sedimentary
and
sedimentary exhalative ore deposits
Magnetite,
Hematite
Limonite
Ferruginous
quartet Art, REE,
Pb, Ni, Pt
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

hold by AbyssiniaCement Plc at Bidimo locality
(MelekaArbaarea)inBaleZoneandtheothers
arecancelled.
TheBikilalironandassociatedmineralsexplora
tion area is under licensing process, issued by
OromiaMineralDevelopmentAgency.
23
2002Eth.C/2010
2002Eth.C/2010
10 years each), require adequate health and
safety of employeesand environmental protec
tionandenvironmentalimpactstudydepending
on type and nature of a project, guarantee the
Between 1974 and 1991 private investment
licensees right to sell the minerals locally or
was not allowed in the mineral sector rather
abroad,provideexemptionfromcustomsduties
governmentinstitutionsweregiventherightto
and taxes on equipment, machinery and vehi
explore and develop the mineral wealth of the
clesnecessaryforanymineraloperations,guar
country. As a result of the political change that
antees the opening and operation of a foreign
tookplacein1991,anewmarketorientedeco
currency account in Ethiopia and retention of
nomic policy was introduced in the country. In
portion of foreign currency earning and remit
theminingsector,thegovernmentpromulgated
tanceofprofits,dividends,principalandinterest
a new mining proclamation and mining income
on a foreign loan etc. out of Ethiopia, require
tax proclamations to encourage the participa
relatively low royalties of 2 % (Mineral water
tion of private capital in mineral prospecting,
and construction materials) to 5% (for precious
explorationanddevelopmentactivity.
stones) ad valorem on production site, dispute
settlement through negotiation and interna
The Mining Proclamation No. 52/1993, Mining
tionalarbitration,andprovidelosscarryforward
RegulationsNo.182/1994andIncomeTaxproc
for ten years (National Report on Mining to
lamations No. 53/1993 were issued to attract
UNCSD,2009).
private investment. The proclamations were

consecutivelyamendedsoastobecompetitive
internationallyandinfavouroftheinvestors.
The majorissues addressed in the legisla

tions are: they invite private investment in all
kinds of mineral operations, Provide exclusive
license right (a oneyear prospecting license,
three years exploration licenses, with two re
newalsofoneyeareach,andmininglicensefor
ten or twenty years with unlimited renewals of
24
2002Eth.C/2010
Reference
AlemayehuGuyasaandHailuEbba.September1978.IronatDimaandArbaminch,Gamogofa.Unpub
lishedReport.EIGS.AddisAbaba.
BolidenContech.June1995.PrefeasibilityStudyofBikilalIronoreproject,FinalReport,phase1.EIGS.
AddisAbaba.
CONSULT 4 International.2002. Bikilal Phosphate Exploration and PreFeasibility Study Final Report.
EIGS.AddisAbaba.
EthioKoreanIronExplorationproject.September1990.GeologicalandGeophysicalExplorationReport
onKunni,DederandGalletiWerfedo(Hararge).EIGS.AddisAbaba.
EthioKoreanIronExplorationproject.1999.GeologicalandGeophysicalExplorationworkontheiron
oreofMelkaArba.EIGS.AddisAbaba.
HaileMichaelFentaw.November2003.GeologyandGeochemistryandEconomicaspectsofApatite
Ilmenite Magnetite bearing magmatic Rocks of Melka Arba area. Unpublished Report. 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.
SocialistRepublicofYugoslavia.
National Report on Mining.2009.FDRE Ministry of Mines and Energy. Paper presented for United
NationCommissiononSustainableDevelopment(UNCSD),NewYork,November2009.
N.I.GolivkinandV.B.Kovalevich.1982.PreliminaryreportonIronOreoccurrencesintheprovinceof
Wellega,Eritrea,HarrarandKaffaofSocialistEthiopia.EIGS.AddisAbaba.
SaidMohammedandMelkamuMengiste.August2009.ShortreportontheCoalandLateriteIronOc
currencesatDuzi&churchuralocalities(EseraWereda,DawroZone,SNNPRState,SouthernEthiopia).
UnpublishedReport.GSE.AddisAbaba.
25
2002Eth.C/2010
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;wondgebre@yahoo.com;
LayoutDesign&copyediting:GeremewNegassa;geremew21@yahoo.com
GeologicalSurveyofEthiopia(GSE)
P.O.Box2302,AddisAbeba,Ethiopia
Tel:(2511)463325
Fax:(2511)463326,712033
Email:survey@ethionet.et
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Opportunities for Iron resources development in Ethiopia

This promotion document is dedicated to the late

Opportunities for Iron resources development in Ethiopia

is the world's 27th largest coun

try. Its population has grown

from 33.5 million in 1983 to

73,918,505 in May 2007 (Central

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

Statistical Agency, 2008, Ethio

Ethiopia is one of the fastest

growing economies in the world.

It has shown a fastgrowing an

nual GDP and it was the fastest

growing nonoildependent Afri

can nation in 2007 and 2008

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

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

Iron (Fe) is a metallic element

Opportunities for Iron resources development in Ethiopia

2. Geology of Iron-Ore Resources.

Based on the geological setting, the varieties of Iron

2.1 Banded iron deposits

2.2 Magmatic magnetite ore deposits

Hematite iron is typically

2.3 Hematite ore

Opportunities for Iron resources development in Ethiopia

3. Types of iron ores

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

3.2 Low-grade ore

with cut-off grades in the

3.1 High-grade ore

main supply has been low-

Currently most of the iron ore mined in the world comes

from large deposits of massive hematite rock formed by the

The dominant economic

ore is magnetite. The ore

Opportunities for Iron resources development in Ethiopia

for many decades in North America (Iron Ore-

ment; limonite, goethite and hematite as

pigments & abrasives, and magnetite in

4. Uses and Mining of Iron

dustrial reagents in the production of

Metallic iron is most commonly pro-

Iron carbonyl - as a catalyst of many

duced from the smelting of iron ore to

produce pig iron (http://Outernode.

Micaceous hematite - as a protective

paint on steel superstructures.

magnetic inks, in ferrites for electronics

Steel is a processed form of pig iron

Almost all of the iron ore that is mined is

rus and sulphur removed and with a re-

used for making steel. Raw iron by itself is

duction in the carbon content (Figure 4).

not as strong and hard as needed for con-

Iron metal may be produced from the

struction and other purposes. So, the raw

smelting of certain iron compounds. Their

(such as tungsten, manganese, nickel, va-