ABSTRACTThe growing use of local coal in Ethiopia has created challenges for cement factories due to inconsistencies in grade and quality. This paper presents the main areas rich in coal resource and potential sites for their development. Field studies have been conducted extensively in some areas to explore coal and analyze its compostion for potential use as major energy source in addressing the high energy demands for cement production across the country. Ethiopian coal beds vary in thickness from a few centimeters to 6 m and encompass a range of ranks from lignite to bituminous coal. Quality also varies widely, with ash content being a significant parameter of concern, as some studies indicate elevated levels. However, because of insufficient data, it is challenging to generalize other quality parameters accurately. Ethiopia's coal exploration dates back to the 1940s, with rough estimated deposits totaling 600 million tons nationwide. Currently, small‐scale producers satisfy 66% of the cement industries coal demand, which is the major consumers. Efficient coal mining enables the country to substitute significant amounts of imported coal, reducing large expenditures in foreign currency. Local coal production offers cost savings, job creation, streamlined transport, and reduced import reliance, thereby preserving hard‐earned foreign currency and granting the country a competitive edge.