Takele Uma has begun the long journey of animating an iron ore mining industry, hoping to reverse the downward spiral in metal products manufacturing brought on by raw material shortages.

The Minister of Mines has been contemplating a strategy developed by his experts for five years for import substitution. The Ministry had partnered with Meqelle University to conduct a study to determine whether manufacturing iron and steel domestically can be a viable industry.

A former Deputy Mayor of Addis Abeba, Takele was appointed to the mining portfolio in the cabinet two years ago. An engineer by training, Minister Takele has been working to replace imported coal with domestic production to cut import bills amounting to 300 million dollars annually.

He recently granted concessions to eight companies in coal extraction with a combined registered capital of six billion Birr.

He intends to find an international consultant to conduct a detailed feasibility study to establish an iron and steel plant. The Ministry’s tender was the second in a year when it was issued two weeks ago. The Ministry’s officials have yet to see the response they had expected.

“We’re hoping more companies will participate this time around,” said Guta Legesse (PhD), director general of the Ethiopian Mineral Development Institute.

The Institute is a federal agency tasked with studying and supporting metal factories. Its officials anticipate the feasibility study to be conducted in six areas before selecting a suitable location for installing iron and steel plants.

For the past year, experts from the Ethiopian Geological Survey have conducted preliminary studies. Their initial assessment indicates that there could be 600 million tones of iron ore reserves, disclosed Dejene Hailemariam, the director.

Previous studies have revealed three kinds of iron ore deposits: Magmatic iron in the West Wellega and Bale zones of the Oromia, lateritic iron in the Afar, and banded iron in the Amhara and Oromia regional states. However, attempts to mine iron ore over the last three decades have proved futile. Five companies with a combined investment of 90 million Br have done iron ore explorations in the past, including Sekota Mining Plc, Ezana Mining Development Company, and the Ethio Engineering Group, formerly the Metals & Engineering Corporation (MetEC).

Sekota Mining minted a deal with the federal government to mine iron ore with a pledge to invest one billion dollars after acquiring a concession in Wag Himra Zone, Amhara Regional State, a decade ago. Sinosteel Institute of China surveyed a 740Km area, discovering a 79 million tonne reserve with contained iron of 24 million tonnes.

Nonetheless, the venture remains on the drawing table.

Officials say addressing the foreign currency shortage for steel imports through exploiting natural resources is of national interest.