The Ministry of Mines announced that Ethiopia has fully replaced imported coal previously used by cement, steel, ceramic and other factories with domestically produced coal, a move expected to reduce foreign exchange pressure and stabilize industrial supply chains.

The announcement was made during the inauguration of the Arjo Coal Processing Factory by Prime Minister Abiy Ahmed on Thursday. Speaking at the event, Minister of Mines Habtamu Tegegn stated that Ethiopia possessed coal resources that can be commercially exploited, similar to other mineral resources found in the country.

Despite this potential, the Ministry noted that Ethiopia continued importing washed coal at high foreign exchange costs, spending up to Birr 300 million over the past two years.

Officials attributed the successful substitution to increased government attention and the growing participation of local companies in establishing coal processing plants in coal-producing areas. The Ministry said improved coal availability has helped cement factories avoid production interruptions, supported market stability, and strengthened supply reliability for the construction sector.

The Arjo Coal Factory is reported to have a production capacity of up to 200 tons per hour and to meet international quality standards.

The Ministry also stated that similar efforts are underway to replace the country’s ceramic and steel demand through domestic production. Large-scale ceramic manufacturing projects are reportedly nearing completion, with production expected to begin within three months. The government said this will help ensure sustainable supply and affordable pricing for the housing and construction sectors.

In addition, the Ministry emphasized continued work to develop domestic iron ore production as part of broader efforts to localize strategic industrial inputs and strengthen Ethiopia’s manufacturing and construction industries.

Source (including image): Ethiopian News Agency