MIDROC Gold Mine PLC made a significant growth in its production efforts by introducing new management system and modern machinery. This was revealed by Dr. Arega Yirdaw, Chief Executive Officer, MIDROC Ethiopia and General Manager of MIDROC Gold, at a special presentation of performance review and strategic plan of the company. Through hard work, diligence and unreserved efforts by the management and employees, in the year 2004 the company has earned a profit of 143 Million Birr.

Dr. Arega in his presentation at the gathering of employees of the company and invited guests, said that within the last six years of production efforts, MIDROC Gold was able to secure 1.9 Billion Birr in sales. And 164 Million Birr was also paid to the government in the form of royalties.

MIDROC Gold which was bought from the Government by Sheik Mohammed Hussein Ali Al-Amoudi in 1998 for US$ 172 million, is now an established and reputed company in the investment sector.

Currently, the company has a total workforce of 1,272 which was only 625 employees in 1999 and the number of expatriates is now reduced from 34 to 13 during the same period. The major reduction was done in the last three years and the expands were replaced by competent and experienced Ethiopians within a very short period of time.

According to Dr. Arega, the company has made a significant growth within the period of six years and the gold mine has yielded a total of 29,000 kg of gold bullion. A yearly average production is about 4000 kg of gold-silver dore. The average combination is 78% for gold and 21% for silver and the remaining 1% accounts for the elements of no commercial interest.

The overall operational plan for the company is planned in three phases. Phases I and II cover the then 8 years (1989-1997) and 6½ years (1998-2004) and period III covers the future plan of 16 years (2005-2020). According to the plan, underground development project is introduced exploit the gold reserve below the final open pit limit. So far, the development of the main access to the ore body is mostly done and over 2.8 km of total underground excavation work is accomplished.

MIDROC Gold has prolonged its production life span at Legedembi and Adolla from 9 to 14 years, and its area of production and exploration has been increased from 81 to 441 sq. km.

The company has spent over 26 million Birr in Adola and Legedembi up to 2004 while it has spent over 1.5 million Birr this year for an exploration work of over 2,347 sq.km area in Metekel. Currently, there are two potential economic projects within MIDROC Gold’s portfolio of exploration, namely East Sakaro and Werseti project. Exploration carried out at East Sakaro has outlined an inferred resource of about 20,000 kg (645,000 ounces) of Gold.

The company is equally paying attention to take care of the environment and exerts an effort in order to maintain acceptable environmental standard in the industry and to comply with government regulations. It has spent 4.6 million Birr in the last 3 years and budgeted Birr 5 Million for the year 2005.