News: KEFI Gold launches Tulu Kapi Gold Mine project in Ethiopia's Oromia region

Tulu Kapi Gold Mine project is situated 28km east of Ayra-Gulliso town in the West Wollega zone of the Oromia region (Photo: Mining Journal)

Addis Abeba – KEFI Gold and Copper PLC (KEFI) has announced the formal launch of the Tulu Kapi Gold Mines (TKGM) project in Ethiopia.

The decision to launch the project was made by the board of TKGM, which includes representatives from the Ethiopian federal and Oromia regional governments, according to a statement from KEFI.

The Cyprus-based company stated that the launch follows the deployment of dedicated site policing and the subsequent conditional confirmations from all members of the project’s finance syndicate.

KEFI also mentioned that an updated corporate presentation will be made available on its website, which will include details of the finance plan and key economic metrics related to the project.

The Tulu Kapi gold project, located 28km east of Ayra-Gulliso town in the West Wollega zone of the Oromia region, represents a significant development in Ethiopia’s mining sector, being the first industrial-scale mining initiative in the country for approximately 30 years.

Harry Adams, KEFI’s executive chairman, commented on the launch timing, stating, “Our launch timing is fortuitously coinciding with the improved conditions in Ethiopia and all-time high gold prices.”

Adams disclosed that the company plans to complete the early works of the project on schedule and meet all necessary conditions to drawdown full project finance, allowing the major works of the initiative to begin in October 2024.

He emphasized that the company’s approach to the project is in line with being a first mover adhering to high standards in various aspects, adding, “This deliberately sequenced and disciplined approach is commensurate with being a first mover adhering to the highest performance standards.”

Previously, KEFI announced it had achieved a significant milestone in securing funding for its high-grade Tulu Kapi gold project with the approval of a $320 million financial package from the lead lender. AS

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