The National Bank of Ethiopia (NBE) has adjusted its gold procurement strategy in response to major supply chain disruptions over the past three years. Last week, the central bank introduced a tiered pricing system, offering premiums of 60pc on supplies ranging from 50gm to three kilograms, and up to 72pc for quantities exceeding 30Kg. This marks the third consecutive year of revisions to the central bank's gold premium rates, following last year's increase to a flat rate of 35pc. Illicit mining activities, particularly those conducted by unlicensed foreign operators, have impacted the country's gold production, which fell short of meeting 35pc of its targets last year. In response to the high incidence of contraband in the sector, the Ministry of Mines revoked special small-scale mining licenses. Minister Habtamu Tegegn informed the Parliament's Standing Committee for Industrial & Mining Development Affairs about the severity of the contraband issue, with some regions such as Sidama and Oromia achieving only 1.87pc and 24.13pc of their production targets, respectively. Artisanal miners, using traditional tools for gold extraction, increasingly resort to selling their gold through contraband channels, where prices can exceed twice the official rates. This year, nearly three tons of gold were produced, with 80pc sourced from industrial mining projects, predominantly led by MIDROC Gold

[ssba-buttons]