Addis Abeba — MIDROC Investment Group's MIDROC Gold Mine has signed an agreement on 29 August with Austria-based CEMTEC Cement and Mining Technology GmbH for the manufacture, installation and supply of machinery for a planned gold processing plant in Metekel Zone of Ethiopia's Benishangul-Gumuz Regional State.
Discover moreRed Sea tradeOnline news portalMedia consulting services The agreement was signed by Dula Mekonnen, Deputy Chief Executive Officer of MIDROC Investment Group's Mining Sector, and Thomas Plochberger, Chief Executive Officer of CEMTEC, according to MIDROC.
Under the agreement, CEMTEC will supply equipment for a gold processing plant designed to process 1.25 million tons of gold-bearing ore annually. CEMTEC is expected to manufacture, complete and deliver the equipment required for the planned MIDROC Metekel Gold Plant within one year.
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The company said the technology and machinery are expected to help establish "a more efficient production system," expand the plant's processing capacity and improve overall productivity.
MIDROC Gold is among the mining companies operating under MIDROC Investment Group and has long been one of Ethiopia's major gold producers, contributing to the country's mineral production and foreign-exchange earnings.
Its planned processing plant in Metekel follows more than a decade of exploration activities in the area.
Addis Ababa real estate In August 2013, MIDROC Gold Mine Plc announced the discovery of a major gold deposit in the Jilaye area of Metekel Zone, which the company estimated at approximately 33,000 kilograms of gold.
Discover moreWestern Tigray borderTigray region newsDesign Campaign SignsNewspapersEthiopian politics bookNews subscription serviceCurrent events newsletterRead Political NewsRead Community News The company's then Chief Executive Officer, Arega Yirdaw, the discovery came seven years after MIDROC launched exploration activities across a 2,292-square-kilometer concession area in Benishangul-Gumuz Regional State.
CEMTEC Cement and Mining Technology GmbH was founded in 1990 and is headquartered in Enns, Upper Austria. The company specializes in technologies for the processing of bulk materials, industrial minerals and ores, with particular expertise in wet and dry grinding technologies.
Its product range also includes systems for the thermal treatment of materials, including drying and cooling, as well as mechanical processing technologies such as mixing, washing, conditioning and pelletizing.
Ethiopian politics book MIDROC's planned expansion comes against the backdrop of longstanding environmental, health and regulatory controversies surrounding its previous mining operations, particularly the Lega Dembi gold mine near Shakiso in Guji Zone, Oromia Regional State.
Communities living near the mine have for years raised concerns about alleged pollution and its impact on public health. Residents and activists have reported serious health problems, including allegations of exposure to toxic substances and heavy metals associated with mining activities, as well as miscarriages and severe health complications among children.
Public anger over the allegations previously triggered protests and contributed to the suspension of MIDROC Gold's mining operations at Lega Dembi in 2018. The suspension followed widespread demonstrations by local residents demanding accountability over alleged environmental pollution and its health consequences.
In March this year, Human Rights Watch and the UN Committee on the Rights of the Child have raised concerns about the potential impact of pollution from the Lega Dembi mine on children and surrounding communities, while calling on Ethiopian authorities to ensure transparency regarding environmental and public-health assessments and strengthen accountability.
MIDROC's mining activities were featured in a new regulatory directive when, in August 2025, the Oromia Mineral Development Authority announced a major review of licensing and compliance issues involving dozens of mining companies operating in the region.
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The decision was announced in the heels of an exclusive report by Addis Standard, published on 19 July, which exposed the contested renewal of three exploration licenses held by Hong Kong Xingxu Mining International Investment Co. Ltd. in West Wellega Zone.
The authority listed 15 companies for possible "revocation of non-compliant licenses." Another 22 companies, including MIDROC Gold Mine PLC, were listed under licenses requiring "prior regional endorsement and agreement."
The MIDROC licenses identified in that category included a limestone exploration license in West Hararghe, gold and gemstone exploration licenses in Guji and East Borana, respectively, as well as gold exploration licenses in Ilu Aba Bora and West Wollega zones.
The agreement with CEMTEC, according to MIDROC, is expected to provide the technological foundation for processing up to 1.25 million tons of gold-bearing ore annually, potentially making the planned Metekel facility a significant addition to Ethiopia's gold-production sector.
