Addis Abeba – Kefi Gold & Copper PLC has achieved a significant milestone in securing funding for its high-grade Tulu Kapi gold project, with the approval of a $320 million financial package by the lead lender.
The Cyprus-based company, with mining interests in Ethiopia and Saudi Arabia, is now set to advance its “shovel-ready” project in western Ethiopia, Alliance News reported.
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.
The project has garnered the necessary approvals from key syndicate members and has received supportive indications from the Ethiopian Government. Kefi is actively preparing the community for the project’s launch through a comprehensive social engagement program, which includes dialogue with community leaders and providing medical assistance for a recent malaria outbreak.
In February last year, stakeholders met in Addis Abeba to address the remaining regulatory and legal issues, setting the stage for the project’s initiation. Foreign direct investment in Tulu Kapi is projected to surpass $400 million by 2025.
The launch of the Tulu Kapi gold project is anticipated in the first half of 2024, contingent on the completion of the necessary preparations and receiving final approvals. The project is expected to have a substantial economic impact, offering employment opportunities to approximately 1,000 local residents within the first year and significantly boosting Ethiopia’s export earnings. AS
