From Tigray to Dubai: Dark trails of illegal gold mining as illicit trade spirals out of control

By Batseba Kasahun

Addis Abeba – The illegal gold trade in Tigray has grown into a highly militarized, violent, and exploitative enterprise with far-reaching consequences. This trade involves a complex network of local and international actors, whose activities have not only devastated the region’s environment and economy but also fueled conflicts and regional instability. Recent investigations reveal that the impact of this trade extends far beyond Ethiopia’s borders, with Dubai emerging as a key hub for smuggled Tigrayan gold.

A Gold Rush Fueled by Violence

Tigray’s gold-rich landscapes have become centers of chaos and lawlessness. Mining sites across the region have turned into battlegrounds for control, with deadly clashes regularly erupting. Since April, many have died in violent altercations tied to the mining activities.

A particularly gruesome incident near the Weri River highlighted the escalating instability in the region, with fatalities underscoring the high stakes and pervasive lawlessness. The conflict involved a diverse group of participants: former combatants in Tigray, local youth, internally displaced persons (IDPs), refugees, and foreign nationals.

The Rahwa mine, renowned for its substantial gold reserves, has drawn comparisons to the “blood diamond” mines of the Congo. An anonymous official from Tigray’s Mining Bureau described the site as heavily militarized, with generals and armed groups exploiting advanced machinery to dominate the illegal trade.

Foreign Involvement Escalates the Crisis

Foreign nationals, particularly Chinese miners, have been implicated in the illegal mining operations. Operating without proper licenses, these foreign actors often collaborate with local armed groups and military leaders, heightening tensions with the local population.

One of such violent incidents occurred at the Hintsat gold mine, where disputes over ownership led to a deadly clash that claimed over two dozen lives. Local workers, frustrated by their exclusion from profits generated by advanced mining equipment, demanded a share of the wealth. The foreign operators refused, treating them as mere laborers. This escalated into clashes.

Smuggling Routes and Global Impact

The gold extracted from Tigray is smuggled through a network of well-established routes. One major pathway passes through Adiabo and Badme, crossing the Mereb River into Eritrea before heading to Dubai.

Another route involves vehicles disguised with the insignia of international organizations, enabling smuggling from Shire to Addis Ababa via Mekelle. Additional routes link Tigray to Somaliland, Kenya, and Uganda, with Dubai acting as the central hub for this illicit trade.

Shire, strategically located near major mining sites, has become the epicenter of Tigray’s black-market gold trade. The town serves as a collection and distribution point, with cartels coordinating the movement of contraband gold. These routes eventually lead to Dubai, leading to rational questions: At the end, why did Dubai support the war on Tigray? Was it to appropriate Tigray’s resources? Upon further and independent international investigations, this could be answered in the affirmative. Estimates suggest that Tigray produces around 20 quintals of gold annually, yet none of this wealth benefits the region’s people.

Environmental and Social Devastation

The unregulated mining practices have unleashed significant environmental and social destruction. Foreign miners use hazardous chemicals such as cyanide and mercury to extract gold, contaminating soil and water supplies. These toxins pose long-term health risks to local communities, exacerbating the already dire humanitarian conditions in Tigray.

Farmlands and other unauthorized areas are often excavated, displacing local populations and depriving them of their livelihoods. Meanwhile, the influx of armed groups and militarized operations has disrupted the social fabric, leaving many communities in turmoil.

Challenges to Resolution

Efforts to address the illegal mining crisis are underway. The Tigray Interim Administration has established a task force to regain control of the mining sector. However, systemic issues, such as entrenched smuggling networks and non-competitive pricing by the central bank, hinder progress.
Fisseha Miresa, head of the Tigray Mining Bureau, emphasized the need for the Ethiopian central bank to offer competitive rates for gold purchases to dissuade miners from turning to the black market. The majority of the revenues should also go to Tigray.

Further, as outlined above, independent, international investigations should be conducted of Dubai’s involvement in the war in Tigray and the association of this with illegal gold mining with a final destination to Dubai. Without meaningful reform, the region’s gold resources will continue to enrich a select few while leaving the people of Tigray impoverished.

Broader Implications 

The stakes are immense. Tigray’s illegal gold trade not only threatens the region’s social and environmental stability but also has broader implications for the global gold market. As Tigray grapples with the aftermath of the war and the chaos of a gold rush, the region’s future hangs precariously in the balance. Resolving this crisis will require a multifaceted approach, including stronger governance, economic reforms, and international cooperation to dismantle smuggling networks.

Further independent, international investigations are also needed to gain insight and require accountability regarding collaborations between Ethiopia and Dubai as to gold smuggling since Dubai was a major aid to Ethiopia during its war on Tigray. Without swift and decisive action, the illegal gold trade will continue to devastate Tigray, perpetuating cycles of violence, exploitation, and environmental destruction. AS

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Batseba Kassahun holds a Master of Public Administration from New York University and is currently pursuing a PhD in Public Administration and Policy. With over a decade of experience in public service, she has led the Black Students Union at North Seattle College, designed and implemented e-learning programs focused on Peace and Security in Africa, and served as a Country Manager for an Irish social enterprise.