Ethiopian Minerals Development S.C requested a loan of 166 million birr from the Development Bank of Ethiopia. The loan will finance the company’s expansion project on the Kenticha tantalum mine.
The expansion project requires an investment of 166.8 million birr to increase the production of tantalum concentrate. The new production line will aim to bring production capacity to 300 tons increasing the company’s revenue to 587.3 million birr.The proposal for the project has been endorsed by the Privatization and Public Enterprises Supervisory Authority and the company has identified equipment to be purchased.
The Development Bank will review the loans request once the company presents price quotes for the machinery along with its proposal according to a senior executive at the bank.
The new project has a capital investment rate of 40% and is expected to secure the requested loan from the Development bank according to the executive.
A tender inviting businesses to bid for the supply and installation of the equipment has been put up.
Ethiopian Minerals Development sells industrial minerals and gemstones to the local market as well as exporting tantalum concentrate internationally. Previous expansion efforts have increased the production capacity of the mine from the original 20 tons to 120 tons and finally 192 tons.
A more effective production method has boosted the output of the mine to 210 tons currently. The company earned 341.64 million in the previous fiscal year.