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
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