East African Mining News Unearthing Mining Opportunities in East Africa
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Rising global gold prices, which have surged more than 50% this year, have ignited a significant illicit mining operation at two fully permitted gold properties owned by Vancouver-based East Africa Metals (EAM) in Ethiopia’s politically volatile Tigray region, according to a report by The Globe and Mail and the Bureau of Investigative Journalism. The investigation concluded that former soldiers and Chinese miners, allegedly backed by undisclosed foreign investors, were extracting gold from EAM’s Mato Bula and Da Tambuk sites from early 2024 to mid-2025. EAM, which is partnered with China’s Tibet Huayu Mining to develop the assets, has vehemently denied any involvement in illegal activity, insisting the projects remain non-operational and inaccessible. The company also rejects claims that its Chinese partners financed or carried out the artisanal operations, though Tibet Huayu did not respond to the newspaper’s request for comment; however, industry insiders reportedly link the illegal ore extraction to Chinese-associated crews from entities like Silk Road Investments and Tigray Resources.
The claims shine a light on the flourishing illicit mining economy in Tigray, which has capitalised on the political vacuum created by the recent civil war. Military factions and local commanders are reported to have seized control of key deposits and smuggling routes, enabling a surge in unregulated extraction across the region. The area’s interim president has deployed a task force to seize assets and pause mining in an effort to curb the activity. However, enforcement efforts are reportedly at risk of being derailed by the escalating conflict in the south of the region. Experts warn that the convergence of soaring gold prices and regional instability risks pushing the area into a Sudan-style resource conflict, with local communities seeing minimal benefits from the plunder of their natural resources.
EAM’s strategic partnership with Tibet Huayu Mining, announced in a June 24 release, saw the Chinese firm commit to funding and advancing mine planning and pre-development activities at both the Mato Bula and Da Tambuk deposits. Crucially, Tibet Huayu is responsible for 100% of the capital and development expenditures, with the projects permitted and carried through to production, according to EAM’s statement at the time. This arrangement underscores the deep financial and operational links between the TSXV-listed junior miner and its Chinese counterpart, placing both entities under intense scrutiny as the allegations of illegal mining and exploitation of a conflict-torn region continue to circulate.
