Ethiopia: Midroc announces 8 billion birr expansion for Midroc Gold, Elfora

Medium_moh_hus_ali_al_almoudi
Midroc's subsidiary Elfora Agro-industry Plc plans to cultivate alfalfa on 300ha of land at Nettle and Shallo in the Oromia Region with an objective of producing 600 tonnes of forage a month. Midroc is owned by Mohammad Hussien Ali Al-Amoudi (above).
Addis Fortune | 11 May 2015

Ethiopia: Midroc announces 8 billion birr expansion for Midroc Gold, Elfora

By Brook Abdu

MIDROC Ethiopia Technology Group has announced an eight billion Birr expansion project for Elfora, an agro processing subsidiary, and MIDROC Gold, a mining exploration subsidiary.

The company, which has a five billion Birr annual turnover, divided the expansion project investment into two sections for implementation to begin in 2015 and continue for the next 15 to 20 years.

The first of the projects to be implemented is the gold mining project, which is to be carried out at the newly discovered gold potential area in Benshangul Gumuz Region with an investment of 4.2 billion Birr, which is five percent of the total investment.

"The new site will be the biggest gold mine in Africa as the study indicated," said Mohammed Ali Al Amoudi (Sheikh), MIDROC's owner and chairman, at an event held at the Sheraton Addis Hotel on Thursday, May 7, 2015, to announce the expansion.

The mining area, Metekel, according to Arega Yirdaw (PhD), MDROC's chief executive officer (CEO), has been explored for the past 10 years with findings indicating that the transfer to the production of gold is feasible. This place will be the third gold exploitation site for MIDROC in addition to the existing two at Legedembi and Saro in Oromia Region.
 
The exploration of the area's potential for gold production and its feasibility study conducted by a Birritish company called Behre Dolbear Minerals Industry Advisors, took 10 years at a cost of 310 million Birr.

From this potential area of gold production, MIDROC plans to extract 34tn of gold in 15 years, expecting 27 billion Birr in revenues. The project could create jobs for 650 employees.

The second expansion project is at the Elfora Agro-industry Plc, with three major development activities within three to five years.

The first of these is modern integrated poultry, which is based on a feasibility study done by US-based Xsyn Corporation and experience sharing with major companies in the poultry sector.

The company has been producing 30 million eggs and 500tn of meat, exporting 20pc of its products to the Djiboutian Market.

This project expansion, planned with an investment of 870 million Birr, is expected to raise production to 65 million eggs and six million kilograms of chicken meat per year. In 15 years, the company aims to have sales of 12.4 billion Birr and create 600 jobs.
 
The second agro-industry expansion project is the production of Alfalfa animal feed, also called forage.

The company has determined that the production of forage can give a yield of 25tn per hectare with 22pc of protein content. It will invest 1.6 billion Birr for the cultivation of Alfalfa on 300ha of land in Nettle and Shallo, both in Oromia Region with a plan to produce 600tn of forage a month.

With this capacity of production, 1.5 million tonnes of forage is expected to be supplied to the market with planned revenue of 10 billion Birr in 20 years. This specific project is expected to create 500 additional jobs.

The third and the final expansion project in Elfora's production is dairy and meat production, which by itself is to be implemented in three phases.

In the first phase, the company has bought 500 Borena heifers, which are now kept at Wonji Kuriftu, near Adama. The second requires the importation of 3,000 heifers and the third being the implementation of modern milk production and processing with 10,000 cows.

For this dairy and meat project, a total investment of 1.1 billion Birr is budgeted with a plan to produce 60 million litres of milk a year with total sales of 12 billion Birr expected over 20 years.
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