Opportunities for Gem resource development in Ethiopia

Promotion Team, Addis Ababa, 2009

Opportunities for gem resource development in Ethiopia

1 Introduction
A gemstone or gem, also called a precious or semi-precious stone, is a piece of attractive mineral which when cut and polished is used to make jewelry. Although not grouped as minerals, some organic materials like amber, coral, ivory, pearl etc.; are also used as gemstone. Opal, aquamarine, garnet, olivine, tourmaline, topaz, sapphire, ruby, amethyst, agate, jasper etc, are some of the minerals used as gem. Their value generally depends on four elements: the beauty of the stone itself, play of internal color its rarity, hardness and toughness, and the skill with which it has been cut and polished (Figure 1).

instrument called a refractometer is used to measure the characteristic property of the stone (refractive index). Emeralds, rubies, sapphires and amethysts are all doubly refracting (Figure 2), whereas, spinels and garnets are singly refracting.

Figure 2. Varieties of amethyst purple-colored, doubly refracting, with deep luster (Borena Zone). Source: Geomuseum (GSE), GSE (Photograph by Sentayehu Zewdie)

Figure1 Cut and polished jasper showing broad areas of internal color ranging from light yellow, brown to white (North Shewa). Source: Geomuseum (GSE), GSE (Photograph by Sentayehu Zewdie).

The beauty of gem can also be identified by their optical properties. The most important optical properties are the degree of refraction and color. An

Other properties include fire, the display of prismatic colors, dichroism, the ability of some gemstones to present two different colors when viewed in different directions, and transparency. In certain gemstones, notably opals, brilliant areas of color can be seen within the stone; and these areas change in hue and size as the stone is moved (Figure 3). Another physical test that can be given to an unknown stone is the determination of its specific gravity. For exact determinations, various weighing devices are used, but rough approximations of the specific gravity of lighter stones can be made by means of a

Opportunities for gem resource development in Ethiopia

series of liquids of known specific gravity. If the stone will float in a liquid having a specific gravity of 4 and sink in a liquid with a specific gravity of 3, the specific gravity of the stone must lie between these limits to be approximately 3.5. The weight of a gem is always a factor in determining price. Carat is the weight measure for gemstones, with the exception of pearls and coral. One carat is equal to 200 milligrams or 0.2 grams.

Figure 4. Top grade precious opal with brilliant green-red-yellow, blue internal fire (play of colors). Menz Gishe District, Mezezo, Shewa, http://www.ecvv.com/product/vp81030/Ethiopian -opals.html

Figure 3. Mocha-colored precious opal with brilliant green-red-blue internal fire (play of colors) running throughout the opal (Menz Gishe District, Mezezo, Shewa) Source: http://www.johnbetts-fineminerals.com/

A special dark-field illuminator with a binocular microscope is employed for examining the interior of a gemstone to determine whether it is of natural or artificial origin, and to search for inclusions characteristic of a given gemstone. Clarity is the most important characteristic in most gem. Flawless transparency-freedom from inclusions and cracks is critical to the beauty of gems like diamond and topaz. By their very nature gems are rare and are not distributed throughout the crustal rocks. Study indicates that there are over 3,000 different minerals, but only about 50 are commonly used as gemstone (http://www.valuablestones.com/). In Ethiopia gemstones occur in many parts of the country. Amhara and Oromia National Regional States are well known by their potential resources (Figure 5).

Ruby, sapphire and emerald are highly prized because of the intensity and beauty of their colors. This phenomenon, known as play of color, differs from fire and is caused by interference and reflection of the light by tiny irregularities and cracks inside the stone. Opals also exhibit milky or smoky reflections. Gems that are fibrous in structure show irregular interior reflections similar to those seen on watered sample (Figure 4).

Opportunities for gem resource development in Ethiopia

There are few mines in Ethiopia (Table1) which basically depend on artisanal mining system, and rather which small-scale-miners dominated the mining operation. Almost all of gemstone mining is done on a low-tech, artisanal level-miners digging by hand or with light equipment, seeking pay dirt (Figure 6).

Figure 5. Aquamarine (Borena zone) crystal in Borena Zone. (Oromia National Regional States) Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company.

Figure 6. Aquamarine mine in pegmatite. Jirme (Borena Zone). Source: Tusguri, 2008.

Gemstone exploration has recent history in Ethiopia. Quite a few studies were conducted by foreign experts (Astrup, 1955; Kochemasov, 1971). Limited explorations have been done by the Ministry of Mines and Energy and Geological Survey of Ethiopia (GSE) (Solomon, 1977; Dubois, 1976). The opal occurrences of central Shewa were among the occurrences visited by Tucci, 2005. Recently (2007-2008) GSE and (GDRBIRDMP, 2007) have conducted exploration in Borena Zone, Oromiya National Regional State (G/Selasse, 2009). In most places, exploration is a hit-andmiss process, with deposits typically being small and widely dispersed (Stone, 2002). Miners dig, and either they get if lucky or they dont.

Miners collect and sell rough gem to local market. Currently, nearly all gems in Ethiopia are exported as rough (Table 2). According to the Amharic journal, ETHIOPIA, 1998 Eth.C, rough gem 991.95 kg was sold for $246,312.29 and the finished one 2.5907555 kg sold for $3,000.10.

A lot of information has been provided for the world wide gem quality in web site. On a recent eBay search, there are different auctions offering Ethiopian gem quality of opal. The world gemstone and jewelry business indicates that Ethiopian polished fire opal (North Shewa, Menz Gishe), showing broad areas of internal fire ranges of green, yellow and red color with gray matrix, has higher current price ($775) (Figure 7). The chocolate variety of rough opal which shows the colorful snakeskin pattern has the most striking and distinctive behavior and deserves to be 3

Opportunities for gem resource development in Ethiopia

called the queen of gemstones (Figure 8). Unit Price of Rough Gemstones for Export are shown on Table 2.
Figure 7. Polished precious opal, showing broad areas of internal fire ranging of green, yellow and red with gray matrix in area (Menz Gishe District, Mezezo, Shewa). Overall size mnL specimen 23199mm Total weight=9.35Ct Source: http://www.johnbetts-fineminerals.com/

Figure 8. Rough Ethiopian opal on international market.Source:http://www.ecplaza.net/ http://yabsera.en.ecplaza.net/

Table 1 Current production and exploration of gemstone in Ethiopia

License Name
Romso Minerals P.L.C

Nationality License Type

Ethio-Swiss

Mineral Type

Locality

Region

Issue Date
10/4/2005

Remark
Active

Exploration Olivine(Peridot)

Romso Minerals P.L.C

Ethio-Swiss

Exploration Olivine(Peridot)

Romso Ethio-Swiss Mining S.S Olivine(Peridot) Minerals P.L.C Abay Natural Ethio-French Exploration Opal Resources Development Plc. AFAKA MINERS P.L.C Kaleb Instruments Plc Abay Natural Resources Development Plc. EthioCanadian Dutch Exploration Opal Exploration Opal Opal Nodule

Romso,Dalecha Oromia N.R.S Aba Gume, Bule funan, Gofa and Buleshalewe,Dire District, Borena Zone Diid Jarsa and Oromia N.R.S Fechena, Dire District, Borena zone Romso, Dire Oromia N.R.S District, Borena Zone Feres Beret, Lay Amhara N.R.S Meda, Zeno Amba& Ayat Meda locality, Mezezo, North shewa Zone Yigem and Molale Amhara N.R.S

1/18/2007

Active

9/14/2006 8/26/1998

Active Active

9/7/2004

Active

Awajo-Feres Beret Amhara N.R.S 12/24/2002 Active Gorat, Yita &Kosta Amhara N.R.S 7/28/1999 Amba Locality, N. Shewa Zone Active

Ethio-French Mining S.S

Opportunities for gem resource development in Ethiopia

Table 2 Unit Price of Rough Gemstones or Export (per kg)

No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Mineral Type Amazonite Amazonite &Quartz Amber Amethyst Ammonite Apatite(Green/Blue) Aquamarine(Blue Beryl) Beryl Beryl(Emerald) Chalcedony Chrysoprase(Chalcedony) Ruby(Corundum) Citrine Sapphire(Corundum) Feldspar Garnet (Rhodolite) Hyalite(Opal) Iolite Jade Opal Opal(Rough) Orthoclase Peridot(Industrial) Peridot(Gem Olivine) Quartz Tourmaline Minimum Price/kg 20.00 USD 20.00 USD 1,186.40 USD 25.00 USD 25.00 USD 50.00 USD 8,000.00 USD 100.00 USD 8,000.00 USD 500.00 USD 100.00 USD 8,000.00 USD 300.00 USD 8,000.00 USD 100.00 USD 300.00 USD 50.00 USD 400.00 USD 25.00 USD 350.00 USD 350.00 USD 10.00 USD 20.00 USD 300.00 USD 25.00 USD 300.00 USD

Opportunities for gem resource development in Ethiopia

2 Geology of Gemstone
The diverse geology of Ethiopia comprises a variety of metallic, precious, gemstone and industrial minerals. The Precambrian metamorphic and igneous rocks, especially the gneissic and granitic terrain, in southern Ethiopia, consist of potential resources of various types of gemstone (GDRBIRDMP, 2007). Except garnet, which is associated with high grade granitic gneiss and schists, most of the gems are hosted in pegmatite veins. The Mega, Daya Dawa, Finnch-Wuha, Corelli, Harshitme (Moyale) and Bonga areas in southern Ethiopia are some examples where gem quality garnet occurs in granitic gneiss and schists (Ethiopian Mineral Development Share Company, 2005) (Table 3). Red garnet associated with blue sapphire occurs in pegmatite and quartz veins hosted in granitic intrusion in areas of Cherri and Arboro (GDRBIRDMP, 2007) (Table 3). Garnet associated with tourmaline also occurs in pegmatite veins in west of Harakole village (Figure 9). The pegmatite generally trend N20W to N40W and are mainly composed of quartz.

The ultramafic rocks are also known to host gem minerals. Talc, serpentinite and mica schists of Anno-Fulanto areas of Southern Ethiopia, contain gem quality, well crystallized, light to deep green apatite (GDRBIRDMP, 2007) (Table 3). Ultramafic xenolites of Megado (Southern Ethiopia) are also known to contain gems. The peridots are contained within ultramafic xenoliths hosted by vesicular basalt (GDRBIRDMP, 2007), and they some times forms nodules of circular to lensoidal shape containing numerous grains (Figure 9).

Figure 10. Peridot Contained in Mantle Nodules at Megado (Borena zone) source: GSE Geomuseum (GSE) (Photograph by Sentayehu Zewdie)

Figure 9.Garnet crystals at Harakole (Oromia National Regional State Guji zone)

There are several gem bearing pegmatites hosted in the Precambrian gneiss and granitic rocks. Some pegmatites are associated with ultramafic rocks. The pegmatites are composed mainly of quartz, feldspar and books of muscovite. In the Aflata Formation, in Baya-Coorrelli (Baya Gundi) these pegmatites occur within amphibole and biotite gneiss and ultramafic rocks. Here the pegmatite hosts a variety of gem minerals like garnet, tourmaline, aquamarine, and corundum with a possible potential to 6

Opportunities for gem resource development in Ethiopia

host emerald. Aquamarine is the most frequently occurring mineral in associated with quartz and feldspar (Figure 11). Small grains of red garnet are found within the quartz. The Aquamarine is well crystallized, hexagonal in shape; and transparent with light blue color (GDRBIRDMP, 2007).

Much of the central part of the country is underlain by Tertiary and younger volcanic rocks, mainly basalt. These rocks are part of the Eastern escarpment of the Ethiopian plateau on the margin of the main Ethiopian Rift System. It consists of five horizons of flood basalt interlayered with paleosoils and agglomeratic tuff, pyroclastic material and unconsolidated tuffacious horizons. The opal is located within OligoceneMiocene-age Trap series of flood basalt sequence with rhyolitic volcanic interbeds. The opal bearing rocks are found within the Ambalege Formation which consists of transitional and subalklaline basalts with minor rhyolites and trachite eruptions. The opal comes from light grey, welded and glassy volcanic tuffs those crops out along the north face of Yita Ridge, Mezezo, North Shewa. The opals occur as nodules within a 9 to 15 feet thick zone along the base of the tuff (Figure 12).

Figure 11. Aquamarine 3cm long and 1cm diameter light blue, and transparent, partially embedded in quartz matrix of pegmatite (Jermi, Borena Zone). Source: Tusguri, 2008

In Web Degero area, the gem-bearing (aquamarine and emerald) pegmatites are medium grained with dark lenses of mica, quartz veins of variable size and lesser amount of feldspar. In Darmi Dama, Kilkile and Kenticha (Southern Ethiopia), the gems (beryl) are associated with rare metal. The beryl is bluish green, fractured and semitranslucent on the surface.

Figure 12.Opal-bearing tuff containing nodule of opal (Yita Ridge, Mezezo, North Shewa). Source Geo-Geomuseum (GSE) (GSE) (Photoraph by Sentayehu Zewdie).

Opportunities for gem resource development in Ethiopia

The main zone is about a mile long with sporadic exposure along the ridge. The opal bearing tuff is generally horizontal bed that appears to be quite extensive. It is overlain by cap rock of columnar basalt that protected the tuff from erosion. The nodules diameter ranges below one to above 8 inches with an average of 4 inches. Small nodules tend to be spherical, but the larger ones are oval shaped (Figure 13). Table 3. Summary of the Gemstone Belts of the Genale-Dawa Basin (GDRBIRDMP, 2007)
Megado AnnoFulanto CherriChebi Arboro

Figure 13. Different sizes of nodules of opal (North Shewa): W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. (Photograph by Sentayehu Zewdie).
BayaCorrelli Web-Degogo BitataHarakole

Mineral

peridot

Apatite

Garnet, Sapphire

Aquamarine garnet tourmaline

Aquamarine

Garnet, tourmaline

Host Rock

Basalt

Serpentinite

Quartz, pegmatite Granite, gneiss Discontin uous

pegmatite

pegmatite

pegmatite

Country Rock Lateral extension

Basalt

Serpentinite

Ultrabasic, gneiss >10km

Ultrabasic

Granite

Extensive

>8km

>15km

>10km

Occurrence Trend By product Zone

Colony ---Olivine Borena

Individual N-S Talc Borena

Discrete N-S Quartz, feldspar Borena

Discrete, colony (group) E-W Quartz, feldspar Borena

Discrete/ individual N-S Quartz, feldspar, mica Borena

Colony N20WN40W Quartz, feldspar Guji

Opportunities for gem resource development in Ethiopia

3 Gemstone Occurrence
3.1 Opal Occurrence
Opal is a mineraloid gel which deposited at a relatively low temperature and may occur in the fissures of almost any kind of rock, being most commonly found with limonite, sandstone, rhyolite, and basalt (Mineral Development Share Company, 2005). The special characteristic of opal is their play-ofcolor, a display of rainbow-like hues which change with the angle of observation. Opal is sensitive to heat, pressure and knocks and being affected by acid and alkaline. Opal has been a popular gem for many centuries possessing a very interesting structure (Figure 14).

150 to 300 nm in diameter in a hexagonal or cubic closed-packed lattice. These ordered silica spheres produce the internal colors by causing the interference and diffraction of light passing through the microstructure of opal.

The chemistry of opal is primarily SiO2 and varying amounts of water. The amount of water varies from 5 -10% and greater. Nonetheless random chains of silicon and oxygen are packed into extraordinarily tiny spheres. These spheres in most opals are irregular in size and inconsistent in concentration. Yet in precious opal, the variety used most often in jewelry, there are many organized pockets of the spheres. These pockets contain spheres of approximately equal size and have a regular concentration, or structure, of the spheres. This has the effect of diffracting light at various wavelengths, creating colors. Each pocket produces a different color, with a different intensity depending on the angle from which a viewer sees it. The multicolored flash of light emission gives a truly beautiful and valuable look (Figure 15).

Figure 14 Oval cabochon of white precious opal with brilliant green-orange internal fire, from Menz Gishe District, Mezezo. Source: http://www.johnbetts-fineminerals.com/

Precious opal shows a variable interplay of internal colors due to its internal structure. At the micro scale precious opal is composed of silica spheres some

Figure 15. Multi colored, beautiful precious opal with brilliant green-orange internal fire,: Source:http://www.ecvv.com/product/vp81030/Et hiopian-opals.html

Opportunities for gem resource development in Ethiopia

The name opal probably is derived from the Indian Sanskrit name for precious stone; upala. It has been mined for centuries, at least since Roman times, in several areas of Czech Republic. Today most precious opal comes from Australia with significant sources from Mexico and the Western United States (http://en.wikipedia.org/wiki).

The opals have generally large size, and wide range of base colors, including clear, translucent, white, yellow, orange, red, blue, green and dark reddish brown (Figure 17 ).

In Ethiopia precious opal is found in Tertiary volcanics within rhyolitic ignimbrite or tuff as concretions that are covered by compacted acidic ash shell with different colored amorphous silica in center (Figure 12 and 16 ).
Figure 17. Cut and polished opal show in an incredible array of colors (North Shewa). Source: Geomuseum (GSE). (Photoraph by Sentayehu Zewdie).

The Imbitata, Gift Bahir, Gorat and Koste Amba opal is found within Tertiary volcanics, in welded lapilli, and rhyolitic ignimbrite as nodules (Figure 18).
Figure 16. Nodules of opal within rhyolitic ignimbrite covered by acidic ash. (Yita Ridge, Mezezo, North Shewa) Source`-Geomuseum (GSE) (Photoraph by Sentayehu Zewdie).

Opal is reported to occur in central Ethiopia, in Amhara Regional Sate, Northern Shoa, around Menze and Gishe and Bulga zone, Mezezo and Sela Dingay wereda at: Yita, Koste Amba, Gift Bahir, Gift Gaymeda, Lay Beret, Wenze Midir, Gorat and Wedera Kebeles. These localities (Kebeles) are about 225 km NNE of Addis Ababa and 5 to 6km NNW of Mezezo at the flank of Debrebrehan-Mehalmeda road (Figure 51).

Figure 18. Large size opal, dark brown base color with flashes of red, green and blue fire (Yita Ridge, Mezezo, North Shewa). Source: Tucci, 2005; http//www.rockngem

The nodules are varying in diameter from 1 to 6cm. The color varies from red (fire) to light grey, and dominantly glassy (Figure 19). There occur nodules

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Opportunities for gem resource development in Ethiopia

which contain both none precious and precious opal. Some nodules are fractured. However, the naturally occurring fractures are not big problem for processing (Tucci, 2005; http// www.rockngem). In Imbitata the opal bearing outcrop extends for about 32m with a depth of 2m. According to Amharic Journal of Ethiopia, 1995 Eth.C., the opal reserve of North Shewa, including Imbitata were calculated to be 2.83 million kg.

Figure 20. A) Rough solid. multicolored, 2.7CT desert crystal opal (Wello). Source: (http://cgi.ebay.com/) B) Bright fire, 3 CT opal in 14k pendant 14k yellow gold. Price 139$. (Wello, Ethiopia). (http//www.esagefinejewlary).

Figure 21 Multicolored, fire opal 6.2 CT (Gonder) Source: (http://cgi.ebay.com/) Figure 19. Light grey glassy nodules and polished variety of opal (Imbitata, North Shoa). Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. . (Photograph by Sentayehu Zewdie).

There are also newly discovered opals in Wello and Gonder in Wadla Dilanta and Tikil Dingay respectively. The opals are multicolored (brilliant), rough with varying size. Nugget type brilliant, rough opal of Wello is called Desert Crystal opal (http://cgi.ebay.com/) (Figure 20-21).

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Opportunities for gem resource development in Ethiopia

On a recent eBuy market on the internet, there are different auction offering for the Ethiopian opal (Figure 22 ).

15mm x 11mm and a gigantic 8mm thick. This gorgeous gem weighs approximately 8 carats. Including the fancy floral engraved bail, the pendant measures a total of 25mm long, about 1 inch long. A B

Figure 22 A) Cut and polished, brown, red, blue and green , 3.6 CT opal. Price $39 (Ethiopia). (http//www.esagefinejewlary). B) Golden yellow 1.17 CT opal$ 9.99 (Ethiopia).

Figure 24 A) 2.3 CT red, blue and green opal $399 (Ethiopia). B) Bright fire, 8.3 CT opal 139$. (http//www.esagefinejewlary).

Pieces of opal is some time completely crafted in solid gold and gives beautiful color, which flashes in different shades of color. Such type of opal is sold about 695 US Dollar (Figure23-24).

Pieces of nodules with varying size and color are capable of being cut and polished and show incredible array of colors and shape (Figure 25). Rough and unprocessed opal-bearing nodule is different from cut and polished opal in prices (Figure 26-27).

Figure 25. Rough opal different color flashes in shades of neon red, yellow and green. (Ethiopia). http://yabsera.en.ecplaza.net/ Figure 23. Opal crafted in solid 14k yellow gold color flashes in shades of neon red, yellow and green (15X 11X 8mm).( www.esagefinejewlery).

The back of this opal is just as colorful as the front. It measures approximately

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Opportunities for gem resource development in Ethiopia

Figure 26 eBuy market showing current price

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Opportunities for gem resource development in Ethiopia

Figure 27 eBuy market showing current price of Ethiopian opal http://www.panjshergems.com/ethiopian-opal.html

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Opportunities for gem resource development in Ethiopia

3.1.1

Opportunity

There is an opportunity for investors to conduct systematic prospecting and exploration in the local mining areas of Yita Ridge and surrounding areas following the opal bearing ignimbrite. Small scale miners have traditionally mined opal since it was discovered in 1994 (Tucci, 2005). The mining is done manually by local people, using simple hand tools, digging pits into the cliffs along the face of the outcrop (Figure 28). Extensive tunneling into the opal bearing rock has not occurred. This indicates that there is an opportunity of large scale mining using mechanized mining equipment.

Figure 28. Digging pits into the cliffs along the face of ignimbrite outcrop (Yita Ridge, Mezezo, North Shewa).Source: Tucci, 2005; http//www.rockngem

According to current e-Buy market on the internet the Ethiopian opal has a good international market; and there is a possibility of potential investors to involve in the sector (Figure 29).

Figure29 Different prices of Ethiopian opal on eBay market

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Opportunities for gem resource development in Ethiopia

There are two small gem processing industries; one in Addis Ababa and the other in Bahir Dar of Amhara National Regional State. For opal-mining industry to be successful in Ethiopia, it is essential that those opals have to be cut and polished for finished jewelry. Currently, the Ministry of Mines and Energy is encouraging the private sector to take the lead in developing modern gemstone mining and establishment of jewellery manufacturing industry.

of the seeds of a ripe pomegranate (Figure 30).

3.2 Garnet Occurrence

Garnet is a rainbow of gemstones. With the exception of the blue, it is found in every color of spectrum. It may have the red of fine ruby or the green of rich emerald. Its good hardness of 7 to 7.5 on the Mohs scale makes the garnet different from other gemstone. With a few minor exceptions, it applies to all the members of the garnet group, and it is the reason for the excellent wearing qualities of these gemstones. Garnets are relatively insensitive and uncomplicated to work with. The only thing they really don't like is being knocked about or subjected to improper heat treatment. A further plus is their high refractive index, the cause of the garnet's great brilliance. The shape of the raw crystals is also interesting. Garnet means something like 'the grainy one', coming from the Latin 'granum', for grain. This makes reference not only to the typical roundish shape of the crystals, but also to the color of the red garnet, which often puts one in mind

Figure 30. Grain like garnet crystals mostly almandine from Harekelo, Borena zone: W/o Asselefech Mitiku, Ethiopian MineralDevelopment Share Company

The main representative of garnet are pyrope (red), almandine (red with violet tint), rhodolite (purplish red or rose) and spessartite (orange to red-brown). Deposits can be found in Burma, China, Madagascar, Siri-Lanka, South Africa, Tanzania, the United States of America, Brazil, Czech Republic, Austria and India. In Ethiopia gem quality garnet are known to occur in southern Ethiopia hosted in pegmatites within the PreCambrian gneiss and schists, Explorations indicate that there occurs gem-bearing pegmatite at about 10 and 30km east and west of Harkakole village in Oromiya National Regional State. Here garnet with subordinate tourmaline is found within the quartz portion of the pegmatite and makes up to 30% by volume. The color of garnet varies from orange to deep red and is well crystallized with rhombohedral shape reaching up to 5cm in diameter

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Opportunities for gem resource development in Ethiopia

(GDRBIRDMP, 2007) (Figure 31) . The pegmatite trends north-east for about 10km.

Figure 31. Well, crystallized gem-quality garnet (Harakole, Borena zone). Source: GDRBIRDMP, 2007

Figure 32 well developed garnet crystal (Almandine) 10cm in diameter (Udet, Sidamo) Source: Geomuseum (GSE). (Photograph by Sentayehu Zewdie).

Similar garnet bearing pegmatite also occur at Hararafama and Gidole, 10 and 30km from Harkakole village respectively (Figure 51) Local mines of garnet were reported in Mega, some 140km from Mega town and Daya Dawa about 100 to 120km from Hagere Mariam town. The garnet crystals are reddish brown, coarse grained, 1-3cm in diameter and transparent to translucent (Unpublished report, EMDSC, 2005). There are also local mines in FinchWoha, Baya, Corelle, Harshitme (20km east of Moyale and Bonga area. Red garnets(Almadine) up to 4cm long are reported. The garnet crystal found in Udet, Sidamo ranges up to 10cm size (Figure 32)

Figure 33 Inter growth of garnet (pyropealmandine) crystals embedded in gneiss (Buri Ejersa locality) Source: Tesfa, 2008.

3.2.1 Opportunities There are several occurrences of gemvariety garnet in southern parts of Ethiopia. Except Harakole, no exploration activities have been done. Therefor there is an opportunity for investors to conduct systematic prospecting and exploration in both explored and local mining areas. 17

The Buri Ejersa garnet, which is located 1km south of Dawa, are isometric, up to 1cm in diameter, translucent and some shows intergrowth of crystals (Tusguri, 2008) (Figure 33 )

Opportunities for gem resource development in Ethiopia

3.3 Peridot Occurrence

Peridot is the best known gem variety of olivine, a species name for a series of magnesium-iron rich silicate, forsteritefayalite series mineral. It is one of the "idiochromatic" gems, meaning its color comes from the basic chemical composition of the mineral itself, not from minor impurities, and therefore it will only be found in shades of green. This bright yellow-green to green gemstone has caught the fancy of humans for thousands of years. In the gemstone trade it is called 'peridot', derived from the Greek word 'peridona', which means something like 'to give richness'. The peridot is one of the few gemstones which come in one color only. The rich, green color with the slight tinge of gold is caused by very fine traces of iron. The intensity of the color depends on the amount of iron actually present. The color itself can vary over all shades of yellowish green olive, and even to a brownish green (Figure 34). Peridot is not particularly hard - only 6.5 to 7 on the Mohs scale - but it is easy to look after and fairly robust. Peridot cat's eyes and star peridot are particularly rare and precious. It has vitreous and greasy luster, and is not resistant to acids. It tends to burst under great stress; therefore it is sometimes metal foiled.

Figure 34 Green to yellowish green peridot hosted within olivine basalt (Mega area, Borena Zone); Source: Tsegaye Girma, Ethiopian Mineral Development Share Company. (Photograph by Sentayehu Zewdie).

The peridot is cut in accordance with its crystal shape, mostly faceted or in classical table cuts, or round, antique, as an octahedron or oval (Figure 35).

Figure 35. Cut and polished, rounded shape peridot (Mega area, Borena zone).Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. . (Photograph by Sentayehu Zewdie).

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Opportunities for gem resource development in Ethiopia

Smaller crystals are cut into standardized series stones, larger ones into imaginative one-offs. Cabochons are made if the material contains more inclusions, for the domed cut brings out the fine silky shine of the inclusions to their best. Deposits have been found in Australia, Brazil, China, Kenya, Mexico, Palestine, Siri-Lanka, South-Africa, Tanzania, Norway and Arizona (Schumann, 2001). In Ethiopia peridot deposits are reported to occur in south Oromiya National Regional State, 665 km south of Addis Ababa, around Mega, at the localities Dillo, Gorain, Megado, Albora, Bulegendo, Gofa Gedo, Tassy and Chew-Bet (Figure 51). The area is found within a north-south aligned caldera that is apparently confined into N-S trending faults (Ethiopian Mineral Development Share Company, 2005). The rock containing the gem is olivine basalt, found as intercalation within agglomerate tuff, at different depth of caldera especially near-vent agglomerate tuffs. The basalt layer reaches up to 1.5m thick and composed of grey to black olivine amygdules, gneiss and 1520cm bombs of fine grained olivine (Figure 36. Crushed bombs yield olivine/ peridot up to 2x2 and 3x3 mm. First grade peridot occurs in near-vent agglomerate. In Albora and Bulegendo there occur crystals of gem-variety olivine/peridot, other than the common fine grained yellowish-green cloudy variety

(EMDSC, 2005). The quality of the Bulegendo peridot is categorized under highest class possessing bright green, yellowish green and olive green color with sizes larger that 10x10x10mm. The occurrence is a fissure type, 15km long volcanic edifice, traced N-S along the western slope. The overall surface of the deposit is slightly in excess of 1km2.

Figure 36 Yellowish green olivine bomb containing peridots (Mega, Borena Zone): Source Geo-Geomuseum (GSE), GSE. . (Photograph by Sentayehu Zewdie).

The olivine crystals and bombs were crushed, measured, weighted and the area was delineated. A thickness of one meter layer from prospecting pit was taken to calculate the reserve. The reserve was calculated for a depth of 1m and area of 9km2. Average thickness of lava flow is assumed to be 6-8m. Inferred reserves (Category P2) of the Bulegendo deposit were estimated at 615.6 kg of highest grade, 1,440 kg first and second grade (total 2,055.6 kg).

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Opportunities for gem resource development in Ethiopia

3.3.1 Opportunities The Mega area is well known by its olivine/peridot occurrence. The data obtained so far indicates that the area, especially the Albora and Bulegendo are promising to conduct further exploration.

limestone. The volatile fraction of the vein liquid or magma provides Be and the host rock requisite Al. In Ethiopia gem quality beryl is found in Precambrian gneiss and schists hosted in pegmatite. In southern Ethiopia, in Oromiya National State, the gem mineral occurs in pegmatites within amphibole and biotitie gneiss of the Aflata Formation. Big crystals of beryl up to 8 to 17cm in width and 22 cm in length were identified in Baya Gundi area in Borena Zone, Oromiya National Regional State (G/Selasse, 2009) (Figure 38).

3.4 Beryl occurrence

The mineral beryl is a principal store of beryllium in the earth's crust. In its rare gem form it is notable for a variety of vivid allochromatic colors, each of which has different gem names. All are nearly chemically identical but contain trace elements of Cr, Fe, Mn and Al to give respective color of green beryl (emerald), blue (aquamarine) and pink (Morganite). These element substitute Al in the crystal lattice and act as chromophores. Indeed, because of a relatively low refractive index and low dispersion, color is the prime factor that accounts for the popularity of most gem beryl (Figure 37).

Figure 38. Beryl (Aquamarine crystal) 17cmx22cm size from Baya Gundi. Source: Geomuseum (GSE) (Photoraph by Sentayehu Zewdie).

The aquamarine is light blue, semi transparent to semi translucent, well crystallized and hexagonal in shape and is embedded in the quartz matrix of the pegmatite (Figure 39).
Figure 37. Light blue translucent beryle,. Aquamarine crystals (Borena Zone, Jirme locality. Source: Tusguri, 2008).

Gem beryl is found nearly exclusively in hydrothermal veins, pegmatites, or at the contacts of larger igneous intrusions that invade aluminous schist, shale or impure

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Opportunities for gem resource development in Ethiopia

The gem minerals found in Degogo area (Borena Zone) are mainly aquamarine and emerald hosted in pegmatite (GDRBIRDMP, 2007). In Degero Licence area, owned by Web Degero Gemstone Plc; the aquamarine crystals are hosted in quartz vein. The gem is well crystallized, blue in color, hexagonal and transparent with no visible fracture plane. In Dido Jarso, 11km south of Mega, beryl crystals occur associated with garnet, vermiculite, muscovite and black tourmaline (EMDSC, 2005). Aquamarine in Chembi, Kilkile and Kenticha area, Borena Zone, are known to occur associated with rare metal class pegmatite (EMDSC, 2005) (Figure 41).

Figure 39. Light blue, transparent aquamarine partially embedded in quartz matrix (Baya Gundi) Source: Berehe G/Selase.

Similar prismatic crystals of aquamarine semi transparent to semi translucent, well crystallized hexagonal, up to 3cmx3cm were reported from a 1m

Figure 41 Rough and polished aquamarine from Borena Zone Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. (Photoraph by Sentayehu Zewdie)

depth exploration pit of Jermi locality, 8km N of Derme town (Figure 40).
Figure 40. Prismatic, light blue, and transparent aquamarine embedded in quartz matrix of pegmatite (Jermi, Borena zone). Source: Tusguri, 2005.

Among the beryl gem, emerald is only reported in three areas of Oromiya National Regional State, around Mega, near the localities of Das, Dillo and Web (Figure 51). The emerald crystals are hosted in pegmatite along the contact with granitic gneiss and ultramafic rocks (Figure 42). Trenches were dug by local miners along this contact to collect emerald crystals. 21

Opportunities for gem resource development in Ethiopia

Figure 43. Finished and rough scapolite (North Shewa). Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company.. (Photograph by Sentayehu Zewdie).

Figure 36. Emerald (green) and aquamarine from Borena Zone. Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company.

3.4.1 Opportunities Exploration in Baya-Gundi and Jermi areas of Borena Zone indicates that there are possible potential of aquamarine for future development.

Jasper and chalcedony occur in North Shewa (Mehal Meda), Kutaber Wello, Debresina (Shewa), Jima and Mega. An indication of good quality jasper is reported 2-3 km far from Mehal Meda at the locality called Gedenbo (Figure 44). White apple green chalcedony and jasper are reported in NE of Mega, 3km south of Das village (EMDSC, 2005).

3.5 Other gemstones

Figure 44. Different colored finished jasper from North Shoa. Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. (Photoraph by Sentayehu Zewdie)

Other gemstones known in Ethiopia include: sapphire, jasper, chalcedony, precious quartz, tourmaline, ruby, amazonite, amethyst, obsidian, scapolite agate, petrified wood, etc; (Figure 43 and Table 4).

Precious quartz occurs in many parts of the country, these include: amethyst, clear purple or violet variety, and color less quartz crystals (Figure 45). Some of these occurrences are reported in Tigray, Borena Zone, Oromiya National Regional State and Jigiga (Somaili

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Opportunities for gem resource development in Ethiopia

National Regional State). (EMDSC, 2005).

veins in gneissic and ganitic terrain (Figure 47).

A)

B)

Figure 45. Rough and finished, precious quartz varieties, A) colorless quartz B) clear purple amethyst (Borena zone). Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. . (Photograph by Sentayehu Zewdie).

Obsidian is commonly found in the rift valley, particularly on the top of volcanic domes and craters. Except the rare colors of brown, grey, blue and green, obsidian has shiny black color (Figure 46).

Figure 47. Rough and finished amazonite (Kenticha, Guji Zone). Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. (Photograph by Sentayehu Zewdie)

Tourmaline is one of the commonly found mineral found associated with garnet in pegmatites. Among the

varieties and species,

black tourmaline

(schorl) are reported to occur in Bisu Duga and Baya-correli (Borena Zone) and Gidole, Bitata-Harakole (Guji Zone Table 4, Figure 48 and Figure 51). Green tourmaline are also seen in hands of local people in Borena Zone and yet the exact locations are not identified.

Figure 46. Black, shiny, polished obsidian (Lanngano) Source: W/o Asselefech Mitiku, Ethiopian Mineral Development Share Company. (Photograph by Sentayehu Zewdie).

Spaphire associated with garnet also reported in Guji and Borena Zone in the localities called Chebi, Bitata Harakole, Gidole (Guji Zone), Lai, Coreeli, Cherichebi Arbboro (Borena Zone, Table 4 Figure 51) .

Amazonite occur in pegmatites of Chebi, Guji Zone, Oromiya National Regional State and Konso wereda in SNNPRS (Figure). It is found hosted in pegmatitic

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Opportunities for gem resource development in Ethiopia

Gem quality, well crystallized, light to deep green apatite are also reported (GDRBIRDMP, 2007).

Figure 48. Black tourmaline crystal (Borena Zone). Source: GSE Geomuseum (GSE) (Photoraph by Sentayehu Zewdie). Figure 50. Gem variety of agate (North Shewa) Source: Geomuseum (GSE) (Photograph by Sentayehu Zewdie).

Petrified wood occur in many parts of North Shoa, in the localities Kimir Dingay, Mehal Meda, Ankober, Sela Dingay, Jehur, Lemi, Gift Mariyam and Yita Micheal areas. In ChebiArboro (Borena Zone), similar petrified wood is repported as pseudomorphus of agate (Table 4 and Figure 49, 50 and 51).

Figure 49. Petrified wood (Borena Zone). Source: Geomuseum (GSE) (Photoraph by Sentayehu Zewdie).

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Opportunities for gem resource development in Ethiopia

Table 4 Gemstone occurrences in Ethiopia

Gemstone No. Host Rock pegmatite Localities Regional state (Borena ONRS, SNRS

1 2 3 4 5 6 7 8 9

Aqua marine

Peridot (Olivine) Garnet, Sapphire Tourmaline Apatite Petrified Wood Opal

Amazonite

Webdegogo, Baya-correli zone)Dermidama, Kenticha (Guji zone), Bombas serpentinite Dilo, Megado, Gorai, Didi- Jerso caldera, ONRS Bulegendo, Alabora, (Borena Zone) Pegmatites and quartz Lai, Coreeli, Cheri-chebi Arbboro (Borena ONRS Zone), Bitata Harakole,Gidole(Guji Zone), Pegmatites Baya- correli, Bisuduga(Borena Zone), Gidole, ONRS Bitata- Harakole (Guji Zone) Ultramaffic rocks Anno-fulanota (Guji Zone) ONRS Basaltic rocks ChebiArboro,(Borena Zone) ONRS, ANRS Sedimentary and volcanic Gorat, Yita and Kosta-Amba,Molale, Mezazo, ANRS environment Laymeda, Zeno Amba and Ayat- meda , North Shewa Zone Pegmatite Chembi (Guji Zone), Konso Sp.Wereda ONRS,

SNNPRS
Agate, Jasper Amethyst Sedimentary and volcanic In Many parts of Ethiopia environment

ANRS = Amhara National Regional State ONRS=Oromiya National Regional State SNNPRS= Southern Nations, Nationalities and Peoples Regional State

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Opportunities for gem resource development in Ethiopia

Figure 51 Location map of gemstone occurrence in Ethiopia

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Opportunities for gem resource development in Ethiopia

Table 5. Geographic coordinates of gemstone occurrences shown on the location map

Mineral Beryl Garnet Garnet Garnet Garnet Beryl Garnet Beryl Garnet Garnet Garnet Garnet Garnet Red garnet Garnet Beryl/ Garnet Garnet? Beryl Garnet Beryl Garnet Beryl

Easting 441327 441070 440872 439966 439834 439792 439441 439181 440429 440002 439397 440148 439090 439916 439180 439191 439498 439238 438900 438724 438919 439486

Northing 592100 592174 592240 594351 594426 594865 594990 595003 601226 601265 601695 601707 601867 601889 601905 602179 602208 602234 602235 602606 602625 602881

Locality unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown unknown

Mineral Beryl Garnet/ Sapphire Petrified Tourmaline Tourmaline Beryl Garnet Garnet Opal Opal? Garnet Garnet Garnet olivine olivine olivine olivine olivine Emerald Emerald Emerald Jasper/ Chalcedony

Easting 496267 389875 390110 441170 441745 438597 438846 476831 568515.6 573054.2 475999.3 439056.1 453823.4 355665.3 406647.1 416732.5 411178.4 440812.1 465080.2 358434.4 468603.1 469050.1

Northing 600841 563264 999690 591933 590650 603327 602626 588235 1096417 1110953 604253.6 584010.6 572944.9 470834.8 430076.4 430066.9 427431.2 466097.1 482971.6 467267.6 506981.5 466450.8

Locality Jermi cheri Chebi Arboro Bisu Dega Bisu Dega unknown unknown unknown Unknown Unknown FinchWoha Baya Corelli Dillo Mega/megado Gofa Gedo Tassy Chew bet Das Dilo Web Das

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Opportunities for gem resource development in Ethiopia

About the Ministry of Mines

In compliance with the market oriented economic policy of Ethiopia, the parliament declared that it is the continuing policy of the Federal Government in the national interest to foster and encourage private enterprises in developing economically sound and stable mineral mining. Accordingly, the Federal Governments Ministry of Mines and Energy is responsible to administer and supervise all large scale mining operations including issuing prospecting, exploration and mining licenses for foreign investors and to these in joint venture with Ethiopians as per the reform issued in 1998 on the Mining proclamation following the realization of previous shortcomings of earlier laws and policies. The reform clearly stipulated the responsibility of National Regional Governments to issue licenses and administer all small scale mining operations owned by Ethiopians and collecting all fees in addition to issue prospecting and exploration licenses for national investors.

Mining Legislation
In June 1993 new Mining and Mining Income Tax Proclamations were issued having considered knowledge-based experiences in some competitive countries and given the following provisions; Invite private investment in all kinds of mineral operations; Provides a prospecting license for one year; Provides an exploration license for an initial period of three years and renewed twice for one year each; Provides a mining license for 20 years and renewed for 10 years unlimitedly; Guarantee the licensees right to sell all the minerals locally or abroad giving marketing freedom; Provides for exemptions from custom duties and taxes on equipment, machinery, vehicles and spare parts; Gives securities of tenure; Gives clear provisions on fiscal and other issues; Considering taxation on repatriation of profits and capitals, a licensee shall pay a 2-5% royalty on ad Val Orem at production site, and a 35% income tax on taxable income. Taxable income is computed by subtracting from gross income for any accounting year all allowable revenue expenditure, a four years straight line depreciation, reinvestment deduction and permitted loses; and

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Opportunities for gem resource development in Ethiopia

The mining proclamation guarantees the opening and operation of a foreign currency account in banks in Ethiopia, retention of portion of foreign currency earning and remittances of profits, dividends, principal and interest on a foreign loan etc. out of Ethiopia.

Of course this fiscal package is still subject to frequent reviews for maintaining a balance between the objective of the government and investors as is evident by a series of amendments of the 1993.

INVESTMENT CLIMATE OF ETHIOPIA

The Federal Democratic Republic of Ethiopia has created a conducive investment environment to ensure and promote private investment to play a leading role in the development of the national economy. This favorable climate for foreign investment has been created as consequence of the solid foundation of political and economic reform, particularly the stably secured macroeconomic reforms which are achieved by carefully managed sequential reforms coupled with faire fiscal and monetary policies. By the virtues of Ethiopias unique and untapped natural resources, its proximity to middle eastern and European markets, its 60 million population, and huge labor force both disciplined and easily trainable are some of the comparative advantages worthy of consideration while investing in Ethiopia. This is further enhanced by specific incentives and efficient administrative procedures.

Mineral Investment
Between 1974 and 1991 private investments were not allowed in the mineral sector. The government was fully responsible for the exploration and development of the sector, before the advent of the new economic policy of Ethiopia. In compliance with the new market economic policy of Ethiopia the parliament declares that it is continuing to update the policy of the Federal Government in the national interest to foster and encourage private enterprises in developing economically sound and stable mineral mining. For a successful implementation of the policy, a number of steps have been taken aiming to boost the confidence of the private sector following the governments strong believe that rapid mineral development can only be realized when the private sector is given full 29

Opportunities for gem resource development in Ethiopia

right of operating managing and owning mineral enterprises. This is the underlined reason for the governments active response to the concern of the International mining Companies. Accordingly it has restricted its role to basic mineral resources exploration, regulation and promotion only inorder; to avoid the fear of controlling a large tract of prospective land by state owned companies, and

to avoid the fear of seeable high risk due to unexpected unfair competition with state owned enterprises. In this connection a measure stick for such track record of the governments commitment is manifested by the privatized Lege Dembi Gold Mine, the only one government owned large scale gold mining, and the Kenticha Tantalum Mine which is already in the pipeline for privatization. This includes the reform of the mining law which is taking place since 1993 and many changes that have happened to justify the sincerity of the government. Furthermore the commitment is much affirmed following the establishment of a fair and clear cut mining legislation giving investors assurances of the fruits of their success. It constitutes a fair setup of efficient and effective licensing and mineral right administration system, a fair set of environmental laws, rules to monitor and mitigate and reclamation effects by mining operation, fair laws to regulate the safety and health of the work fore and securing of tenure. It also gives freedom to license holders with a number of incentives including low royalty, exemption from custom duties and taxes on the equipment, machineries vehicles, and spare parts necessary for mineral operations with a 10 years provision to allow investors to carry forward losses.

Geological Survey of Ethiopia (GSE) P.O.Box 2302, Addis Abeba, Ethiopia Tel: (251-1) 463325 Fax: (251-1) 463326, 712033 E-mail: survey@ethionet.et Source of information: Geological Survey of Ethiopia (GSE), Ethiopian Mineral Development Share Company (EMDSC). Prepared by Sentayehu Zewdie; Wondafrash Mammo; Geremew Negassa Address: sentayehu@email.com; wondgebre@yahoo.com; geremew21@yahoo.com

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Reference:
Astrup, J. 1955. Report on An alleged beryl occurrence in the region of Genale Dora River Chembie). Unpublished report, Geological Survey of Ethiopia (GSE). Dubois, C.G.B. 1976, Peridot in South Sidamo. Unpublished report, Geological Survey of Ethiopia (GSE) Addis Ababa. EMDSC, 2005, Gemstone occurrence in different parts of Ethiopia. Unpublished report, Ethiopian Mineral development share Company, Addis Ababa, Ethiopia. GDRBIRDMP, 2007. Genale-Dawa River Basin Integrated Resources Development Master Plan. Part II, VolumeII.1, Mineral resources sector study. Ministry of Water Resources, Addis Ababa G/selassie, B, 2009. Report on Reconnaissance & Follow-up Exploration of Gemstone at Baya Gundi area, Oromya National Regional State, Borena Zone. Kazmine, V. 1972. Geology of Ethiopia Unpublished report EIGS Addis Ababa. Ethiopia. Kochemasov, GG, 1971. The geology and mineralization of the Chambi area, Sidamo. Unpublished report. Geological Survey of Ethiopia (GSE) Addis Ababa. Ministry of Information, 1998. Yearly Book, Ethiopia, Amharic version, Press and Audiovisual Department, Addis Ababa. pp199. Schumann, W. 2001. Gemstones of the World, Revised and expanded Edition. pp150. Solomon, I. 1977. Olivine and garnet in Southern Sidamo. Unpublished report, Geological Survey of Ethiopia (GSE) Addis Ababa. Stone, M. 2002. Gems and Technology - Vision Underground. ( http://www.ganoksin.com/index.htm). Tefera, M, Haro, W., Chernet, T. 1996. Explanation of the geological map of Ethiopia. 1:2,000,000 Scale. Geological survey of Ethiopia. Addis Ababa. Tucci, P. 2005. Un an common gem from unusual source. Tusguri, T. 2008. Assessment of gemstone in Dermidama area (Adola mineralized zone, Southern Ethiopia, Msc Thesis, AAU.

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