Ethiopian-Saudi billionaire Al-Amoudi, currently in detention in the Saudi Arabia anti-corruption purge, has mined Lega Dambi gold mine located in Oromia region’s Guji zone of Shakiso town since 1997, but now there’s an outcry. Al-Amoudi has bought the country’s single large-scale gold mine twenty years ago with his group, Midroc at a cost of USD 172 million. The mine has an annual production of 4.5 tons of gold and figures show further promising deposits are still in development.
Despite protests from residents and activists, news surfaced last week that the license for the corporation has been renewed for another ten years, which apparently authorities tried to keep discreet. Tensions escalated in the area and the Oromia region in general as a result of insufficient attention to the demands of local communities. There have been sporadic demonstrations in towns such as Ginchi and Ambo, the epicentres of anti-government protests calling for the government to take a firm hand with the company and even cancel the license. In the Shakiso town itself, residents who gathered yesterday morning were soon dispersed by security forces. The situation remains tense because of the heavy military presence, according to reports by Deutsche Welle and Voice of America Amharic services.
The residents say the mining project is causing pollution and toxic discharge from the company is responsible for birth defects and disabilities that have been observed in the region. Interviewed by the BBC Amharic on 11 December 2017, several town residents say that the waste contain the toxin, cyanide and it is causing problems such as blindness, miscarriages and a birth defect where a baby’s head is smaller than expected when compared to babies of the same sex and age. Animals, especially cows, develop complications drinking the waste, which finally result in their deaths, the residents said. It is not always easy to ascertain the veracity of those claims. In the past Midroc has responded saying that its plans have been drawn up in consultation with local communities and meet the highest environmental standards.For Solomon Ungashe, an independent researcher, the solution would be to “invite international team of scientific experts to investigate the cause of birth defects observed only in villages adjacent to the mining site. The kind of defects observed suggest mercury and its derivatives may be the culprits but that must be corroborated or disproved with scientific investigation. The job cannot be accomplished by local experts alone.”
There is also a perception that the company has consistently taken advantage of the region, even though it has done nothing to develop the inadequate infrastructure and acute shortages of communication facilities constitute formidable constraints to the region. Midroc states on its website that it has financed the construction of Shakiso High School, Gedembi Shakiso Technical Institute, the woreda’s justice bureau and the woreda’s police station.
The Ethiopian government faces extraordinary pressure from its citizens and media to be firm with Midroc and this is becoming is a test for the newly elected Prime Minister Abiy Ahmed, who enjoys huge popularity in the Oromia region and who is trying to balance the needs of the people who brought him to power with the demands of the mining industry, one of the engines of the country’s economic growth. Some in his own administration are becoming vocal in their objection to the project. Hasan Yusuf of Oromia Environmental Protection and Forestry Bureau is one of the persons who opposed the renewal of license of Medroc Laga Dambi on environmental grounds. On a Facebook posting, he wrote that the “basic environmental compliance audit for license renewal failed to consider the environmental and social concerns that arise with the implementations of the mining operations.”
Head of the Oromia regional state communication affairs bureau, Negeri Lencho, also said that “any investment venture would be inacceptable if is not done without proper study, and without consultation with the public.” However, he remained vague on what course the region would take, or was he simply advising the mining company to resume dialogue with local residents and to reach a compromise. On Twitter reaction to Negeri’s remark, Kena Deme, a teacher at the Ambo University wrote that “Dear Dr. Negeri, The peoples living in the area knows well what benefits them more than you think for them. Stop chit chat on the peoples lives. Remove renewed license immediately.”
It is becoming clear that if situation is not handled carefully, things could generate out of control. Some are already concerned about the possibilities of violence and clash with security forces that might backfire and cause harm, instead of solving the problem. Political commentator Mengistu D. Assefa said that that since the country is being led by command post that forbids any kind demonstration, the public should be prudent not to play into those who could use the opportunity to dismiss the legitimate question.