By: Addis insight

Ethiopia is on the verge of becoming one of Africa’s newest large-scale gold producers with the launch of the Kurmuk Gold Mine Project in Benishangul-Gumuz. Backed by an investment of around $500 million, the project is set to deliver first gold by mid-2026 and could dramatically reshape Ethiopia’s mining landscape.

A Game-Changer for Ethiopia

Kurmuk will be the country’s first industrial-scale gold mine, moving beyond small-scale and artisanal production. Operated by Allied Gold, with the Ethiopian government holding a 7% stake, the mine is positioned to deliver both strong export earnings and vital fiscal revenues.

With production targeted at ~290,000 ounces per year in its first five years, Ethiopia is expected to join Africa’s mid-tier gold producers almost overnight.

The Numbers Behind the Project

• Investment: ~$500 million in two phases
• Production: 290,000 oz/year (first five years); >240,000 oz/year life-of-mine
• Cost efficiency: All-in sustaining costs below $950/oz, thanks to a $0.04/kWh hydropower deal
• Mine life: Initially 10 years, with expansion potential

The mine will draw on two open pits, Dish Mountain and Ashashire, feeding a 6 million tonne per year processing plant.

Economic Impact

Hard Currency Boost

At gold prices of $2,000–$2,300 per ounce, Kurmuk could bring in $580–$670 million in annual export revenues—a massive inflow of foreign exchange for Ethiopia.

Government Revenues

The state will benefit from royalties, profit shares, and taxes, adding up to an estimated $100–$150 million annually, alongside dividends from its equity stake.

Jobs and Local Development

The mine is expected to create 1,500 direct jobs at peak, plus thousands more indirectly through contractors, suppliers, transport, and services. Allied Gold has already spent over $100 million locally in 2024, highlighting the scale of domestic economic activity tied to the project.

Power Infrastructure Legacy

The project’s new 75 km transmission line will not only supply the mine but also strengthen the grid around Asosa, leaving lasting benefits for surrounding communities.

What’s Next

Construction is underway, with civil works, camp building, and contractor mobilization progressing. Mining is set to ramp up in mid-2025, paving the way for first gold by mid-2026.

The Bottom LineKurmuk Gold Mine is more than just a mining project—it’s a national economic milestone. By 2026, it could transform Ethiopia into a serious player in the African gold sector, delivering foreign currency stability, government revenues, jobs, and infrastructure.