Ethiopia is looking to attract gold from Kenya and other neighbouring countries to its newly opened refinery, as American, Chinese and Australian investors compete for opportunities to develop the mineral-rich Mrima Hills in Kwale County.
The National Precious Metals Refinery was inaugurated on October 10 following a $50 million (Ksh6.48 billion) investment by state-owned Ethiopian Investment Holdings and Dubai-based Sam Precious Metal.
Ethiopian Prime Minister Abiy Ahmed said the facility would enable countries in the region to refine their gold within Africa rather than ship it to overseas markets.
“It enables neighbouring countries and regional mining companies to bring their gold to Ethiopia for advanced refining, certification, value addition, and sale, eliminating the need to export it outside the continent,” Abiy wrote on X.
According to Forbes Africa, Africa Gold Council Director Keith Nare identified Kenya, Uganda and Sudan as potential clients for the new refinery.
Ethiopia's move comes as Kenya seeks investors to develop the Mrima Hills mineral deposits, which contain niobium and rare earth elements used in electronics and advanced manufacturing.
In September, Mining Cabinet Secretary Hassan Joho disclosed that Kenya and the United States were engaged in advanced negotiations over a critical minerals partnership that could pave the way for the establishment of local processing plants and refineries.
Washington has offered to help Kenya develop its critical minerals processing industry as the US seeks to diversify supply chains heavily dominated by China.
Meanwhile, Chinese President Xi Jinping has urged African nations to maintain control over their mineral resources, warning against foreign powers turning the continent's deposits into instruments of geopolitical competition.
Australia has also entered the race to develop Mrima Hills, with a consortium involving RareX and Iluka Resources making progress in the tender process.
The Australian-led group's proposal includes conducting initial mineral processing in Kenya before transporting rare earth concentrate to Iluka's refinery in Western Australia for further treatment.
The competing proposals highlight growing international interest in Kenya's mineral resources, particularly as major economies seek to secure supplies of materials essential to advanced manufacturing and emerging technologies.
However, the Kenyan government has yet to indicate whether it would consider sending its gold to Ethiopia for processing.
The Ethiopian refinery is targeting an annual processing capacity of 600 tonnes of gold and silver, positioning the facility to serve mining companies and neighbouring countries seeking refining services within the continent.
