Opportunities for Tantalum resources development in Ethiopia 2002Eth.

C/2010

14
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

1. Introduction
General Information  The name tantalum was derived from the name of the mythological Tanta‐

With  1,126,829 sq.km,  Ethiopia  is  lus, the father of Niobe in Greek mythology. Crustal abundance of tantalum 

and niobium are on average about 22 and 20 ppm respectively (Wilson etal 
the  world's  27th  largest  country.  Its 
1988).  Tantalum  (Ta)  and  niobium  (Nb)  are  almost  always  associated  with 
population has grown from 33.5 mil‐
one another and don’t occur in their native forms. From an economic point 
lion  in  1983  to  73,918,505  in  May 
the most important minerals are those of the tantalite‐columbite series con‐
2007  (Central  Statistical  Agency, 
taining variable quantities of both tantalum and niobium. 
2008, Ethiopia). 
 
 
Tantalum is dark, dense, ductile, very hard, easily fabricated, and highly con‐
Ethiopia  has  one  of  the  fastest 
ductive  of  heat  and  electricity.  The  metal  is  renowned  for  its  resistance  to 
growing  economies  in  the  world.  It 
corrosion to acids due to the formation of an oxide film. Tantalum is one of 
has  shown  a  fast‐growing  annual  the  five  refractory  metals  (metals  with  very  high  resistance  to  heat  and 
GDP  and  it  was  the  fastest‐growing  wear). The metal has a melting point of 30200c (boiling point 55600c) that is 
non‐oil‐dependent  African  nation  in  exceeded only by tungsten and rhenium.  
2007 and 2008 (http://en.wikipedia.   
org).  The  GDP  on  2008/09  (2001  1.2 Occurrences. 
 
Eth.C)  was  443USD  (Central  Statisti‐ Tantalite  and  columbite  are  usually  found  disseminated  in  granitic  rocks, 
cal Agency, 2008, Ethiopia).  particularly in pegmatite in association with albite microcline, quartz, spodu‐
  mene, beryl, lepidolite, tourmaline, muscovite, cassiterite and other miner‐
The  mining  sector  has  significant  als. 
contribution to GDP.mainly gold and   
tantalum are the major ones.  Elluvial and alluvial deposits, resulting from the erosion of these rocks, may 
also  provide  economically  exploitable  deposit.  So  far  Tantalum  ores  are 
found only in some countries of the world such as Australia, Brazil, Canada, 
Ethiopia,  Mozambique,  Nigeria,  Portugal,  Thailand,  and  Zaire(Wilson 
etal1988).  

1.3 Applications 

Tantalum has a high strength at elevated temperatures and a melting point 
Tantalum ore 
of  30200c.  Tantalum  as  the  metal  powder      is  predominantly  used  in  the 
(source: http://www.tradekey.com/ks‐
tantalum‐ore)  electronics  industry  in  the  production  of  capacitors,  high‐power  resistors, 

1
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010
tite bodies and to lateritic mantle of weathering on the 
rectifiers,  amplifiers,  oscillators,  controls,  signal  de‐
above  bodies.  The  rare  metal  occurrence  is  hosted  in  a 
vices,  alarm  systems  and  timing  devices.  Because  of 
long  and  linear  belt  (the  kenticha  belt).  The  Kenticha 
the  size  and  weight  advantages,  tantalum  capacitors 
belt extends for over 100km, as estimated from Katawa‐
are  attractive  for  portable  telephones,  personal  com‐
cha  Mountain  on  the  south  to  the  left  bank  of  the 
puters and automotive electronics.   Genale  River  on  the  north  and  covers  an  area  of  more 
 
than 250. 
Tantalum  is  also  used  to  produce  a  variety  of  alloys 
that have high meting points, are strong and have good 
2.1 Geology of Kenticha Tantalum deposit. 
ductility. Alloyed with other metals, such as in making 
carbide  tools  for  metal  working  equipment  and  in  the 
The  tantalum  deposit  of  Ethiopia  is  located  in  the  east‐
production  of  super  alloys  for  jet  engine  components, 
ern  side  of  the  Adola  gold  field  550km  (315km  asphalt 
chemical  process  equipment,  nuclear  reactors,  and 
and 285km of well maintained gravel road) south of Ad‐
missile parts.  
dis Ababa (fig1).   
 
Because  of  its  ductility,  tantalum  can  be  drawn  into   
fine wires of filaments, which are used for evaporating  The  rocks  of  Adola  area  is  proposed  to  be  a  two  fold 
metals such as aluminum. Tantalum also has the ability  subdivision  of  rocks  into  Gneissic    Terrain  and  Green‐
to  conduct  alternating  current  in  only  one  direction  stone Belt .The Gnessic terrain consists of relatively high 
and the high electrical resistance of some alloys is also  grade  rocks  which  occupy  three  N‐S  trending  anticlinal 
utilized. Refracto super alloys are produced by combin‐ zones separated by two intervening narrow N‐S trending 
ing tantalum with cobalt, iron and nickel.    synclinal Greenstone belts. With reference to the Green‐
  stone  Belts,  Western,  Central  and  Eastern  Gnessic  ter‐
The  oxide  is  used  to  make  special  high  refractive  index 
rains are distinguished. 
glass for camera lenses.   The high melting point and oxi‐
 
dation resistance lead to the use of the metal in the pro‐
Similarly  the  two  greenstone  belts  can  be  divided  into 
duction  of  vacuum  furnace  parts.  Tantalum  greatly  in‐
western  (Megado  Zone  Green  stone  belt)  and  Eastern 
creases  the  armor  penetration  capabilities  of  a  shaped 
(Kenticha  Zone  greenstone  belt)  (Woldai,  1989,Figure 
charge  due  to  its  high  density  (16.6  gm/cm3)  and  high 
2)). 
melting  point.  It  is  also  occasionally  used  in  precious 
 
watches.  
Major characteristics of representatative rock types are 
 
as follows; 

2. Tantalum in Ethiopia   Gneissic  terrain;  Amphibole  gneiss,Biotite 

gneiss,Quartzofeldspathic gneiss and 
 
  Green  stone  Belt;  Metagabbro/Gabbro  amphibo‐
The  presently  known  potential  of  tantalum  and  nio‐
lite,Amphibole schist,Talc‐Tremolite scist, Serpen‐
bium in Ethiopia is Kenticha, in the Adola area, South‐
tinite,Graphitic schist.(EIGS‐UNDP,1993, Figure 2.)
ern  Ethiopia.  The  complex  Ta‐Li‐Be  mineralization  of 
the  kenticha  deposit  is  related  to  granite  and  pegma‐

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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

Figure 2 Geologic map of the Kenticha Area(Extracted from Geological Map of Adola area, 1:100,000,1992)

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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

LEGEND

Quartz core

Blocky Microcline

Spodumen-microcline-
albite pegmitite

Albitites

Two feldspar granite

Zone of albitized rock

Serpentinite

Talc chlorite schist and ferruginous

siliceous rock

Biotite and amphibole-biotite

gneiss and schist

High angle fault

Thrust fault

Figure 3 GEOLOGICAL MAP OF THE KENTICHA RARE METAL DEPOSIT

   2.3  Mining  conditions  of  Kenticha  Tantalum 

2.2 Kenticha Tantalum Resource  Deposit 
  EMDSC(Ethiopian  Mineral  Development  Share  Com‐
The primary ore with a probable reserve of 17,000 ton‐
pany)  produces  a  good  quality  tantalum  concentrate 
nes concentrate containing 0.017%Ta2O5. 
which is supplied for export market. EMDSC is one of 
The weathered zone plus part of primary zone is calcu‐
the  top  ten  producers  of  tantalite  in  the  world. 
lated to be 4700 tonnes Ta2O5 proved reserve, with an 
EMDSC produces tantalite concentrate from Kenticha 
average grade of 0.015%Ta2O5. 
area.   
 
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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010
The production of Kenticha Tantalum deposit is 100tonnes Ta2O5 per year, equivalent  to 200 tonnes concentrate con‐
taining  50  ‐  60%  Ta2O5  (Figure  3,locality  2)  Investigation of the rare metal bearing pegmatite within the main kenticha deposit 
has proved a world class ore reserve of Tantalite with subordinate niobium, lithium, beryllium bearing minerals in addition to high 
quality ceramic grade quartz feldspar and other industrial minerals. 

No Tantalite Unit 2005-06 2006-07 2007-08 2008-09 2009-10

1 Production Ton 109 117 82.54 165.7 195
Export Mar-
2 Ton 122 114 95.33 145 201.73
ket

Table 1- Production and export market

y(Ton)

250
The complex ore is associated with a primary granitic 
200
pegmatite body and to a lateritic mantle of weather‐
150
y(Ton) ing developed over the primary pegmatite. 
100

50

0
2005- 2006- 2007- 2008- 2009-
06 07 08 09 10

Figure4.-Production for Tantalum

y(Ton)

250

200

150
y(Ton)
100

50

0
2005- 2006- 2007- 2008- 2009-
06 07 08 09 10

Figure5-export market for Tantalum Plate 1 Tantalum concentrates at Kenticha Tantalum

production plant

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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010
In general three types of ore of the deposit have been 
recognized. 
1.  Primary  Ore:  Tantalite  bearing  granite‐pegmatite 
with complex Ta‐Nb‐Li‐Be mineralization.  
 2. Lateritic type Ore: the mantle of weathering devel‐
oped over pegmatite and granite. 
3. Elluvial, delluvial and alluvial placer ore.  
The  weathered  ore  developed  over  the  primary  ore  of 
pegmatite represents the huge Rare‐metal resources of 
the  kenticha  deposit.  This  deposit  is  marked  with  high 
Plate 3 Mining under operation
quality Ta‐Nb and made it one of the best of the like de‐
posits elsewhere in the world (Solomon T, 2009). 

Plate 4. Tantalite ore of upper horizon

Plate 2.Tailing dam of Kenticha Tantalum production
(weathered pegmatite)
plant
 
There are a number of well identified tantalum bearing 
3. Market and Trade 
3.1 TANTALUM ‐ PRICE  
localities  within  the  kenticha  belt,  it  extends  for  over 
Pricing is normally established by contractual 
100km (from Katawacha Mountain on the south to the 
agreements between miners and processors  
left bank of  Genale river on the north, and it is in the 
Long‐term contracts not significantly affected by 
best  interest  of  the  nation  to  quickly  undertake  geo‐
current market volatility  
logical exploration all over the region, in order to iden‐
tify    another  economically  significant  rare  metal  de‐ Current Price 

posit(Solomon T,2009).  ‐ Contained in concentrate: US$60/lb  
  ‐ Tantalum Oxide: US$140/lb  
7
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010
‐ Capacitor grade tantalum powder: US$350‐400/lb  
• Demand growth rate since 1990, 5% per year  
4. Opportunities 

EMDSC  has  planned  to  increase  the  production  of 

tantalum through its successive expansion projects in 
large scale and to improve the quality of the products 
it  also  wants  to  work  in  joint  venture  investment  in 
exploration,  development,  mining  of  mineral 
resources and producing value added materials from 
tantalite  concentrate  in  Ethiopia.  EMDSC  envisioned 
becoming  the  best  and  vibrant  mining  company  in 
Ethiopia  by  renewing  and  upgrading  its  production 
and administrative procedures. Value adding process 
on the Kenticha Tantalum concentrate is essential as 
the  market  for  end  products  of  Tantalum  in  the 
Figure 6 Tantalum Market demand world wide region  (Africa,  Middle‐East  Asia  countries)  is 
(SOURCE: Tantalum International Center, www.tant.org)  favorable.  Therefore,  companies  with  high‐tech 
capacity,  with  a  modern  way  of  tantalum  processing 

3.2 TANTALUM: SUPPLY STRAIN  are invited to invest on Kenticha Tantalum processing 
plant. 
Global primary supply has fallen behind demand: 
    by scrap, inventories, and tin slags  • It  is  a  good  opportunity  to  carry‐out  Follow‐up‐
Long  term:  Market  requires  additional  production  from  Detailed exploration work over kenticha belt, which 
new projects.     is  supposed  to  host  Ta‐Li‐Be  mineralization  that 

  extends for over 100 km. 

  • It is also a good opportunity to carry‐out Follow‐

  up‐Detailed  exploration  work  on  other  similar 

pegmatites  of  the  country  for  rare  metal 
 
occurrences. 
 
Investors  in  the  mining  sectors  can  also  enjoy 
 
exemptions  from  taxes  on  the  equipments, 
 
machineries,  vehicles  and  spare  parts  necessary  for 
 
their  operations.  This  makes  the  country  very 
 
attractive  both  for  foreign  and  domestic  investors  in 
Figure7. Tantalum Primary Production 2008,   the mining sector. 
(SOURCE: Tantalum International Center, www.tant.org)   
8
 Table2. Status of Licenses Source: Mining Licensing and Administration Core Processes, MM 

Type of        Area 
Licensee name  Status  Nationality  Mineral Type  Locality (Region)  Issuance Date  Expiry Date 
License  (Km2) 

ESKAB  Mining and Industry  Katawacha (Oromia 
Cancelled  Ethio‐Arab  Exploration  Tantalum  44.126  21‐Jan‐2008  20‐Jan‐2011 
PLC  N.R.S) 

Oddo Shakisso (Oromia 
CGC Construction ‐Ethiopia  Active  Chinese  Exploration  Tantalum‐Niobium  15.7171  16‐Dec‐2008  15‐Dec‐2011 
N.R.S) 

Bond International mineral  Tantalum  Teba Gudba,Ebicha and 

Cancelled  Ethio‐China  Exploration  46.76  25‐Sept‐2008  24‐Sept‐2011 
products  associated minerals  Didola (Oromia N.R.S) 

Guji Family Tantalum‐ Tantalum  Bomba Woha and     

Active  Chinese  Exploration  35.569  07‐July‐2009  06‐July‐2012 
NiobiumEast Africa Ltd  And Niobium  Kenticha (Oromia N.R.S) 

9
Guji Family Tantalum‐ Tantalum  Kenticha(Lolotu)(Oromia 
Active  Chinese  Exploration  154.8685  27‐Dec‐2006  26‐Dec‐2009 
NiobiumEast Africa Ltd  minerals  N.R.S) 

Guji Family Tantalum‐ Tantalum 
Active  Chinese  Exploration  Kenticha (Oromia N.R.S)  234.45  12‐Sept‐2008  11‐Sept‐2011 
NiobiumEast Africa Ltd  ‐Niobium 
Opportunities for Tantalum resources development in Ethiopia

Tantalum‐Niobium,   
Hurbukesa locality
Cotraa Mining PLC  Active  Ethio‐India  Exploration  Beryllium and other  71.38  27‐May‐2009  26‐May‐2012 
(Oromia N.R.S) 
minerals 

EthiopianMineral Resource 
Active  Ethiopia  Mining  Tantalum  Kenticha(Oromia .R.S)  ‐‐‐  ‐‐‐‐  ‐‐‐‐ 
Development S.C 
2002Eth.C/2010
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

Since  2008,  seven  exploration  licenses  for  Tantalum‐Niobium  were 

issued by Federal Ministry of Mines licensing and Administration Core 
Process, five of which are still active and two are cancelled. Moreover 
one  mining  license  is  issued  by  Oromia  Mineral  Resource  Develop‐
ment Agency for Ethiopian Mineral Development S.C.  

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Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

INVESTMENT CLIMATE OF ETHIOPIA

In June 1993 new Mining and Mining Income Tax Procla- The Federal Democratic republic of Ethiopia has created
mations were issued having considered knowledge- a conducive investment environment to ensure,
based experiences in some competitive countries and (promote) private investment play a leading role in the
given the following; development of the national economy.

Invite private investment in all kinds of min- This favorable climate for foreign investment has been
eral operations; created as consequence of the solid foundation of politi-
Provides a prospecting license for one year; cal and economic reform, particularly the stably secured
Provides an exploration license for an initial macroeconomic reforms which are achieved by carefully
period of three years and renewed twice for managed sequential reforms coupled with faire fiscal and
one year each; monetary policies. By virtues of Ethiopia’s unique and
Provides a mining license for 20 years and re- untapped natural resources, its proximity to middle east-
newed for 10 years unlimitedly; ern and European markets, its 60 million population, and
Guarantee the licensee’s right to sell all the huge labor force both disciplined and easily trainable are
minerals locally or abroad giving marketing some of the comparative advantages worthy of consid-
freedom; eration while investing in Ethiopia. This is further en-
Provides for exemptions from custom duties hanced by specific incentives and efficient administra-
and taxes on equipment, machinery, vehicles tive procedures.
and spare parts;
Gives securities of tenure; Mineral Investment
Gives clear provisions on fiscal and other is-
sues; Between 1974 and 1991 private investments were not
Considering taxation on repatriation of profits allowed in the mineral sector. The government was fully
and capitals, a licensee shall pay a 2-5% roy- responsible for the exploration and development of the
alty on ad Val Orem at production site, and a sector, before the advent of the new economic policy of
35% income tax on taxable income. Taxable Ethiopia. In compliance with the new market oriented
income is computed by subtracting from gross economic policy of Ethiopia the parliament declares that
income for any accounting year all allowable it is continuing policy of the Federal Government in the
revenue expenditure, a four years straight line national interest to foster and encourage private enter-
depreciation, reinvestment deduction and per- prises in developing economically sound and stable min-
mitted loses; eral mining.
The mining proclamation guarantees the open- For a successful implementation of the policy a number
ing and operation of a foreign currency ac- of steps have been taken aiming to boost the confidence
count in banks in Ethiopia, retention of por- of the private sector following the governments strong
tion of foreign currency earning and remit- believe that rapid mineral development can only be real-
tances of profits, dividends, principal and in- ized when the private sector is given a full right of oper-
terest on a foreign loan etc. out of Ethiopia. ating managing and owning mineral enterprises. This is
the underlined reason for the government’s active re-
Of course this fiscal package is still subject to frequent
sponse to the concern of the International mining Com-
reviews for we want to maintain a balance between the
panies. Accordingly it has restricted its role to basic min-
objective of the government and investors as is evident
eral resources exploration, regulation and promotion
by a series of amendments of the 1993.
only such as;

11
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010

to avoid the fear of controlling a large tract

of prospective land by state owned compa-
nies,
to avoid the fear of seeable high risk due to
unexpected unfair competition with state
owned enterprises.

In this connection a measure stick for such truck record

of the government’s commitment is manifested by the
privatized Lege Dembi Gold Mine, the only one govern-
ment owned large scale gold mining , and the small
scale Kenticha Tantalum Mine which is already in the
pipeline for privatization. This includes the reform of
the mining law which is taking place since 1993 and
many changes that have happened justify the sincerity
of the government. Furthermore the commitment is
much affirmed following the establishment of a fair and
clear cut mining legislation giving investors assurances
of the fruits of their success. It constitutes a fair setup
of efficient and effective licensing and mineral right
administration system, a fair set of environmental laws,
rules to monitor and mitigate and reclamation effects
by mining operation, fair laws to regulate the safety
and health of the work fore and securing of tenure. It
also gives to license holders with a number of incen-
tives including low royalty, exemption from custom du-
ties and taxes on the equipment, machineries vehicles,
and spare parts necessary for mineral operations with a
10 years provision to allow investors to carry forward
losses.

12
Opportunities for Tantalum resources development in Ethiopia 2002Eth.C/2010
Nigussie Tilahun (1991) Lineament Analysis of the Adola

References Belt, Addis Ababa, Ethiopia.

Richard Edwards and Keith Atkinson (1986), Ore Deposit
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Geology, 175 pp.
Exploration in Adola Area (Sidamo)EIGS- UNDP, Addis
Solomon Tadesse (2009), Mineral Resources Potential of
Ababa, Ethiopia, 160 pp.
Ethiopia ,AAU Press.
Getachew Tesfaye Chekol, 2008(2000E.C.), Semi-final re-
Teweldemedhin Tekle, etal (1991); The Geology and Rare
port on Geological and geochemical Exploration for gold in
metal potential of the Kenticha Pegmatite Deposits, Shakkiso.
the Haranfama Detal Target Area, Kolati Subsheet, Southern
GSE, Addis Ababa Ethiopia.
Ethiopia. GSE, Addis Ababa Ethiopia.
Waldemar Lindgren (1933).Mineral deposits, 4th edition 761
Hailu Worku and Kinetbeb Yifa (1989) The tectonic evolu-
pp.
tion of the Precambrian Metamorphic rocks of the Adola Belt
.WEIKIPEDA free encyclopedia.
( Suothern Ethiopia) and its implication on Gold mineraliza-
Wilson and C.R. Anhaeusser (1988), Mineral Resources of
tion. UNDP, Addis Ababa, Ethiopia.
South Africa, six edition, handbook 16, M.G.G. 604-607 pp.
John M. Guilbert (1986), The Geology of Ore deposits, 487
Woldai G.1989. The Geological Evolution of Adola Precam-
pp.
brian Greenstone Belt, Southern Ethiopia.EIGS/UNDP Train-
Ministry of mines and Energy (2002), Opportunities for In-
ing for Mineral Exploration Project Eth/86/034,Addis Ababa.
vestment in Ethiopia’s Tanatlum Resource, Addis Ababa,
WWW.tant.org :Tantalum International Center,
Ethiopia.

Prepared by:  Wondafrash Mammo; [email protected]; 
Layout Design & copy editing : Geremew Negassa; [email protected]
Geological Survey of Ethiopia (GSE) 
P. O. Box 2302, Addis Abeba, Ethiopia 
Tel:  (251‐1) 463325 
Fax: (251‐1) 463326, 712033 
E‐mail: [email protected] 

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