INVESTMENT OPPORTUNITIES IN ETHIOPIA’S TANTALUM MINERAL
RESOURCES

Ethiopia hosts important rare metals particularly tantalum mineralization. However, these resources have not yet been fully in use, which calls for a change in this situation of the mineral sector to dynamism in light of the development need of the country. This has required both undertaking intensive promotional activity using the existing geologic information and conducting an efficient geological exploration in more prospective areas that make effort worthwhile.

In this regard, rare metal bearing areas are given priority considering the prevailing global demand for tantalum and niobium products which has continued to increase, having been influenced not only by the significant growth of in the world market for the telecommunication, computers, automotive and consumer electronics but also by the recovered economic condition in Asia. Therefore, it is timely to evaluate the rare metal resources of the country, particularly in areas of known tantalite mineralization.

The presently known potential area of tantalum and niobium is Kenticha, in the Adola area, southern Ethiopia. The rare metal occurrences in Kenticha is hosted in a long and
linear belt, hence called the Kenticha belt. It is located in the eastern side of Adola gold field, 550kms south of Addis Ababa. Shakiso, the gold mining town, is only 50kms from Kenticha, and is linked with Addis Ababa by air transport too.

The present knowledge about Kenticha rare-metal belt is limited to an economic evaluation made previously which was largely based on preliminary geological approach. Hence it is necessary to carryout a detailed investigation so as to know not only the genetic aspects but also the pattern of rare metals enrichment of each area including the regional distribution of the type pegmatite for tantalum mineralization. Accordingly, some companies (among others, Japanese, South African and Australian companies in joint Venture) have been attracted by the limited promotional efforts of the Ministry of Mines and Energy and the Mineral Operation Department in particular. These companies have already applied for licenses to undertake exploration for tantalum. Besides, the Ethiopian Mineral Development Share Company has already obtained licenses to undertake exploration for Tantalum and Gold in the same area.

Kenticha Belt Geology

The Kenticha Belt geology can be described in terms of lithostratigraphic nomenclature as follows:
· Aflata formation (680 ± 30my, Chater 1971),
· Kenticha formation (680 ± 30my, Chater 1971),
· Adola lithometamorphic rock series (350 ± 30my, Kozyrev et al 1982),
· Posttectonic granite and pegmatite (480 ± 50 to 515 ± 10my, Kozyrev et al 1982).

Aflata formation consists of fine to medium grained biotite gneiss amphibolite, interbeds of biotitie schist, graphite and marble while the Kenticha formation constitutes biotite-muscovite gneisses, quartz amphibole gneiss, quartzo-feldispatic biotite schist, two mica schist and marble.

Serpentinite, talc, talc-tremolite schist, chlorite schists, and metsandstones represent the Adola lithometamorphic rock series. The post-tectonic granite, rare-metal bearing pegmatites and occasional alaskatic granite are widely developed in the form of stock or dikes varying from several kilometers to a few meters in width. N-S trending structure is believed to have controlled the localization of the rare metal bearing pegmatite and associated acidic granitoid.

The pegmatites are genetically related to dome and lenticular shaped granitic intrusion (biotite granite, two-mica quartz and alaskatic granite emplaced by a process of magmatic injection within the metamorphosed volcano sedimentary rocks.

The Kenticha belt extends for over 100km (as estimated from Katawhicha mountain on the south, to the left bank of the Genale river on the north). A typical mountain topography characterizes the area with elevation ranging from 1500m to 1960m. Drainage is well-developed and the area gets water mainly from rain. The Mormora river is the largest perennial river in the region just 8kms west of the Kenticha tantalum deposit.

Kenticha Tantalite Deposit

Rare metal occurrences were first reported in 1966n within pegmatite of the main Kenticha, and also in 1982 in Kenticha, Katawhicha, Dermidama, Ulawlo, Kilkile, Bupo and Kotissa. Prospecting and exploration works conducted in the Adola Goldfield from 1981 to 1986 have also resulted in the discovery of a number of gold, base metals and rare metal targets, the latter being enriched in high tantalite within mineralized pegmatite.

Further investigation of the rare metal bearing pegmatite within the main Kenticha deposit has proved a world class ore reserve of tantalite with subordinate niobium, lithium, beryllium bearing minerals in addition to high quality ceramic grade quartz-feldspar and other industrial minerals. The complex ore is associated with primary granite-pegmatite body and to a lateritic mantle of weathering developed over the primary pegmatite. The granitic pegmatite, emplaced by intruding the ultramafic suite, occur within a large serpentinite hill that covered about 9km2.

In general, three types of ore of the deposit have been recognized :
· Primary Ore:- tantalite bearing granite-pegmatite with complex Ta-Nb-Li-Be mineralization.
· Lateritic type ores:- the mantle of weathering developed over pegamtitie and granite.
· Eluvial-deluvial and alluvial placer ore.

The weathered ore developed over the primary ore of pegmatite represents the huge rare metal resources of the Kenticha deposit. .

This deposit is marked with high quality Ta-Nb and made it one of the best deposits in the world. This has warranted commissioning of the Kenticha mining pilot plant in 1990 by the government with a capacity of treating 200 tons of ore daily and has since produced 60- 70 tons of Tantalite concentrate yearly with an average grade of 60-64% Ta2 O5.

With regard to investment legislation, the Ethiopian government has created a conducive environment to ensure private investment play a leading role in the development of the national economy in general, and mining sector in particular. The government has established a fair and clear-cut mining legislation. This legislation gives license holders with a number of incentives including low royalty, exemption from custom duties and taxes on the equipment, machineries, vehicles and spare parts necessary for mineral operations with a 10 years provision to allow investors to carry forward losses. The legislation also constitutes a fair setup of efficient and effective licensing and mineral administration system, a fair set of environmental laws, rules to monitor and mitigate reclamation effects by mining operation, fair laws to regulate the safety and health of the workforce and securing tenure. [The mining legislation and other information can be made available by the Embassy upon request.]

Another important measure the government took was floating state owned enterprises for privatization. Accordingly, the Kenticha Pilot Plant mentioned above is one of the enterprises open for privatization to potential investors presumed to have both the financial and technical capabilities to expand and optimize the production of tantalite concentrate.

Hence, foreign investors are warmly welcome and encouraged to explore and participate in this promising sub-sector and other mineral resources in Ethiopia.

(Taken from a Publication on Tantalum Resources of Ethiopia –Ministry of Min