Addis Abeba – Kefi Gold & Copper PLC has initiated the construction of essential infrastructure at its 95%-owned Tulu Kapi gold project in western Ethiopia.
The company has initiated the construction of worker camps, the drilling of water wells, and the upgrade of a nearby company airstrip.
Kefi said these developments mark an important step in advancing the project as the company prepares for full-scale operations.
In a statement issued on 20 August, 2024, Kefi Gold highlighted that it is moving forward with early-stage works at the Tulu Kapi mine while finalizing financial arrangements in anticipation of the project’s official launch.
According to the company, principal contractors are currently revising the final infrastructure budget in collaboration with international plant fabricators. This effort is aimed at securing a fixed-price construction agreement, expected to be signed next month.
Furthermore, Kefi Gold disclosed that studies are underway to increase the processing capacity by at least 20%.
This expansion plan involves incorporating underground mine development alongside the already established open-pit operations, which have exceeded the nameplate capacity of the processing plant.
The company believes this capacity increase can be achieved within the existing capital and operating expenditure forecasts.
The company has also scheduled a second site visit for lenders to facilitate final credit approval from a second co-lender in September, following the initial lender’s approval.
Executive Chairman Harry Anagnostaras-Adams commented, “Kefi is advancing rapidly on the ground in Ethiopia, as allowed by land access. The environment has become increasingly favorable for mining, with site activities facilitated by the deployment of substantial safety-protection forces provided by both the government and private security contractors.”
The company noted the favorable economic conditions, with gold prices reaching a historic high of USD 2,500 per ounce.
Kefi estimates that the first full year of production at Tulu Kapi will generate a net cash flow of $196 million, which will be sufficient to repay the project’s debt.
Earlier this year, Addis Standard reported that Kefi Gold had achieved a critical milestone in securing funding for the high-grade Tulu Kapi project. The company secured a $320 million financial package, approved by the lead lender.
The Tulu Kapi gold project is situated 28 kilometers east of Ayra-Gulliso town in the West Wollega zone of Ethiopia’s Oromia region. AS
