Investment Holdings secures potash for Dangote fertilizer project
The Ministry of Mines has handed out three fresh concessions for potash, iron ore, and gold in a move its officials hope will translate into two billion dollars in investment and a milestone for their ambitions to erect a fertilizer production plant in the Somali region.
On Friday, the Ministry, led by Habtamu Tegegne, granted a license for potash extraction to Ethiopian Investment Holdings (EIH), while an obscure China-based firm secured a novel iron ore concession, and Bero Mining, a local outfit, was handed a gold concession.
In January, The Reporter confirmed that EIH, the sovereign wealth fund overseeing giants like Ethiopian Airlines and Ethio telecom, had secured the rights to a 365 square kilometer potash reserve on the north-eastern border tip of Dalul Woreda, Afar.
Around 200 kilometers from Assab, official documents suggest the site could potentially hold a massive volume of potash, which is a crucial component for the production of artificial fertilizers.
EIH placed an application for a commercial mining license from the Ministry in July 2025, one month before the government’s investment arm signed a shareholders’ agreement to develop, construct, and operate a large urea fertilizer production complex in Gode, Somali Regional State, in partnership with Nigerian multinational Dangote Industries Limited.
Under the partnership structure, EIH will hold a 40 percent equity stake while Dangote Group will maintain 60 percent ownership of what promises to be one of the largest industrial investments in Ethiopian history.
Friday’s announcement is a milestone for the project, securing the potash necessary for fertilizer production.
Meanwhile, ZYT BDIM, a Chinese firm about which little is known, nabbed iron ore extraction rights while Bero Mining will be the newest entrant in a commercial gold mining industry characterized by delays, obscure ownership structures, and subpar production.
The details of these concessions remain undisclosed, but sources say Bero will be based in the gold-rich Benishangul-Gumuz region.
As for ZYT, industry insiders who spoke to The Reporter say the country lacks the infrastructure to support commercial iron ore mining, despite Ethiopia’s estimated 1.1 billion tons in deposits. They explain that Ethiopia does not have the railroad network required to move the massive volumes of ore involved in a commercial project.
