According to a report by Fana Broadcasting Corporation (FBC), a state-owned media outlet, the factory will be located in the Bullen District of Metekel Zone in the Benishangul Gumuz region. The district, however, has been plagued by ethnic violence in recent years, particularly targeting the Amhara community. The violence, which has led to numerous casualties, is reportedly under control, with the security situation improving since the rise of the Fano militia, a group that emerged nearly two years ago to address perceived existential threats to the Amhara people.

MIDROC representatives have met with senior government officials in Gelgel Beles town, where local authorities pledged full support for the factory project, ensuring that all levels of government will cooperate to help the company meet its gold production goals.

Surafel Lakew, the Mining Sector Director at MIDROC Investment Group, emphasized that the factory aims to modernize the country’s gold extraction methods, which are currently dominated by traditional practices in many regions. By using more advanced technology, the company seeks to maximize resource utilization, increase revenue, and reduce the illegal circulation of gold.

Once operational, the factory is expected to create over 1,500 jobs, contributing to the local economy and providing opportunities for skilled labor. In addition to the direct employment benefits, the project aims to reduce the wastage of resources, a common issue in the sector, and improve the sustainability of gold production in Ethiopia.

MIDROC’s gold mining operations in Lega Dembi, Oromia region, were halted in 2018 following the cancellation of its license amid environmental concerns related to chemical use in the mining process. The decision came at the height of protests tied to the political unrest surrounding activist Jawar Mohammed, a key figure in the Oromo political movement. However, the company’s reputation in the industry remains intact, with some sources estimating that MIDROC generates an annual turnover exceeding $25 billion and employs over 70,000 people nationwide.

This latest investment in Bullen District signals MIDROC’s continued commitment to the Ethiopian market and its ambition to enhance the efficiency and profitability of gold mining in the region.