When Tigray became a 'wild west' of illegal gold mining, Canadian firms staked a claim

The Tigray region of Ethiopia, once a war zone, has become a "wild west" of illegal gold mining marked by unsafe labor and violent conflicts. Despite Tigray previously being a major official gold supplier to Ethiopia's National Bank, much of the gold is now smuggled out illicitly, worsening the region's instability and depriving local communities of potential revenue for post-war reconstruction.

Key points from recent investigations and reports include:

• After the war, legal mining operators, including Canadian-licensed firms, have struggled to access their sites, which are occupied by local groups, former combatants, and artisanal miners. This has created a chaotic mining environment dominated by illegal operations with heavy machinery and 24/7 activity, often involving local youth, refugees, and foreign nationals, including Chinese miners, operating without proper licenses.

• Illegal mining sites have become centers of violence and territorial disputes, sometimes resulting in deadly clashes. For example, a conflict at the Hintsat gold mine caused over two dozen deaths. Disputes often arise over ownership and profit-sharing fairness between local workers and foreign operators.

• The illicit gold trade is controlled partly by actors linked to the Tigray Defense Forces (TDF) and Tigray People's Liberation Front (TPLF). Smuggled gold frequently exits through Sudan and arrives in markets such as Dubai, further fueling the underground economy and conflict dynamics.

• The environmental impact is severe, with extensive pollution from mercury and cyanide used in unsafe gold extraction practices, threatening public health and ecosystems.

• Licensed mining companies previously operating with the Ethiopian federal government's authorization have been blocked from their concessions, and the regional administration requested revocation of many licenses. Canadian companies holding licenses to mine in Tigray have been at the center of this contested landscape amid insecurity.

• Overall, the situation represents a complex mix of economic desperation, political fragmentation, armed control, and illicit trade exploiting Tigray’s rich gold resources, undermining the region's chances for peaceful recovery and development.

This transformation of Tigray into a hazardous zone of illegal mining illustrates the deep post-war challenges and the entanglement of local and international interests in the gold economy of Ethiopia's most war-affected region.

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