THE MINERAL INDUSTRIES OFEAST AFRICA AND THE INDIAN OCEAN MINERALS YEARBOOK—1988
 71 
 
EAST AFRICA AND 
* THE INDIAN OCEAN 
By Lloyd E. Antonides, Thomas P. Dolley, Harold R. Newman, John G. Panulas,

George A. Rabchevsky, and Walter G. Steblez 
 
 
 
1 
 
 
 Comoros is made up of several islands with poor transportation links, increasing
population, and few natural resources. Agriculture, including fishing and
forestry the leading sector of the economy, contributed about 40% to the
gross domestic product (GDP), employed about 80% of the labor force, and
provided most of the exports. Despite major investments in the tourist industry,
which accounted for about 25% of GDP, economic growth has stagnated since
1983. Commercially exploitable mineral deposits on the islands of the Comoros
archipelago were limited to small sand and gravel quarries, which were operated
for local construction needs. 
 
 
DJIBOUTI2 
 
 Saudi Arabia and France continued the financial assistance that had started
upon the country's independence from France in June 1977. Saudi Arabia funded
the construction of the country's first roadway between the capital city,
Djibouti, and Tajoura in the north. There has been almost no foreign private
investment and little domestic private investment since independence. The
largest manufacturing enterprises were state-owned: a dairy, a mineral water
bottler, and a livestock feed processor. All petroleum product requirements
were also imported. Live animals were Djibouti's largest export, primarily
to Saudi Arabia and the Yemens. 
 Mineral production was limited to the exploitation of small sand and gravel
deposits for domestic construction, evaporated salt, and a small amount of
lime. A salt evaporation pan was operated in the salt marshes of Todoura.
Limestone was mined in 
Mangadafo, supplying a lime kiln in the town of Dorale. Most of the country's
electricity was generated by the diesel-run electric powerplant. Electricité
du Djibouti, state-owned, continued working on a geothermal research center
to assess the feasibility of incorporating geothermal power into its grid,
thereby cutting oil imports. 
 
 
ETHIOPIA3 
 
 The 1988 economy declined, largely caused by another drought, military setbacks,
decline in coffee prices, and Government policies. Real GDP decreased by
2% , while the population grew by 3%. The small, but important, mining and
quarrying sector grew by 20% . Agriculture continued to be the main factor
in the economy, contributing 40% of GDP, 85% of exports, and about 80¾
of employment. The United States and the Federal Republic of Germany continued
to be Ethiopia's largest export markets. Coffee accounted for about 71 ¾
of total Ethiopian exports to the United States. 
 Small amounts of gold, gypsum, kaolin clay, limestone, marble, platinum,
and salt were mined. Mining of cesium and columbium also was planned. Gold
was the major mineral export in terms of value. The placer gold deposits
of the Adola area, in the Sidamo region, about 470 kilometers southsoutheast
of Addis Ababa, were mined at the production rate of about 400 kilograms
per year. The construction of facilities for the Lega Dembi gold mine near
Shakiso in Jemjem Province, in the Sidamo region, about 500 kilometers south
of Addis Ababa, was 50°lo completed. The project was expected to
start
production in 1989. Reportedly, the roads linking the mine to the nearby
towns were constructed. The capacity of the mine was to be 96,000 troy 
ounces of gold per year. The facilities included a 3,000-ton-per-day cyanide
leach section and associated processing plant. The project was jointly financed
by the African Development Bank, the European Investment Bank, and the Ethiopian
Government. 
 An iron ore deposit, estimated at 18 million tons, was discussed in the
We!ega Province, western Ethiopia. A tantalum deposit was discovered near
Shakiso. Ethiopia had large deposits of bentonite, reserves of 31 million
tons of diatomite, and large quantities of soda ash. Smaller deposits included
copper, feldspar, graphite, lignite coal, mica, nickel, * potash, pyrite,
sulfur, talc, and a variety of gem stones. Potash, mostly sylvinite, occurred
in the Danakil Depression in Tigre Province and was reportedly being redeveloped
as an open pit, with Libyan help. There were also substantial resources of
carnallite. 
 The Assab Oil Refinery, the only petroleum refinery in Ethiopia, used imported
crude as feedstock. A gas discovery was made in the arid Ogaden region bordering
Somalia. 
 Loans were made by the Czechos!ovakian Government in October for the deve!opment
of Ethiopian mining and energy resources, among other projects. A 2-year
protocol agreement on economic, scientific, and technical cooperation was
signed with Cuba on October 28. An agreement was signed with Italy on October
17 to alleviate the shortage of foreign exchange aid to purchase the products
needed for various economic development sectors. The funds from the Italian
Government will be used for buying raw materials and chemicals for industry,
construction, transportation, and other economic sectors. A joint-venture
company was reportedly set up with Libya to begin the construction of a marble,
granite, and limestone plant. The plant will be located about 225 kilometers
east of Addis Ababa.