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News: Tulu Kapi Gold Mine envisages full project deployment, signs final umbrella agreement

Harry Anagnostaras-Adams, chairman for KEFI (left end), Abera Mamo, country director for TKGM (second to the left), and Ciaran Quinn, finance director for PW Mining (first from right) signing the Final Umbrella Agreement. Photo: Ethiopian Investment Commission

Addis Ababa – Tulu Kapi Gold Mines (TKGM), the gold and copper exploration and development company with projects in Ethiopia and Saudi Arabia, signed the Final Umbrella Agreement with two of its major industry contractors handling projects in over 20 African countries, PW Mining, British earthmoving construction firm, and Lycopodium, Australian process plant construction company, envisaging full Tulu Kapi Gold project deployment, located 28km east of Ayra-Gulliso town, in Western Oromia.

The agreement is said to outline a timeline for the start of full project development right away government gives the all-clear on security, community, and few unconcluded administrative issues, such as the working details of the international banking arrangements.

The agreement was attended by Abera Mamo, country director for TKGM, Harry Anagnostaras-Adams, chairman for KEFI, Ciaran Quinn, finance director for PW Mining, Tony O’Neill, contracts manager for PW Mining, H.E Julia Niblett, Australian Ambassador to Ethiopia representing Lycopodium, Lelise Neme, commissioner for Ethiopian Investment Commission (EIC), Semereta Sewasew, state minister of finance, and other government officials.

PW Mining will provide the construction, installation, and machinery supply services while Lycopodium is involved in the designing and consulting the project, according to Abera Mamo, country director for TKGM.

TKGM, a mining investment commenced by a public-private partnership (PPP) with the Ethiopian Federal Government, in collaboration with the regional government of Oromia, and KEFI Gold and Copper, signed the agreement today, April 27, at the Ethiopian Investment Conference, Skylight Hotel, near Ethiopian Airport. 

An Initial Umbrella Agreement was signed in June 2022 between TKGM and its lead bankers Eastern and Southern African Trade and Development Bank (TDB) and Africa Finance Corporation (AFC).

The Umbrella Agreements are condensed versions of the multiple detailed individual contracts that the numerous parties involved in the international project finance syndicate are entering into.

Tulu Kapi Gold Project is industrial-scale mining development focusing on production of 250-300 million USD of gold and silver annually at current metal prices after construction is completed by 2025.

After construction is finalized in 2025, Tulu Kapi Gold Project, an industrial-scale mining venture, is expected to produce 250–300 million USD worth of gold and silver yearly at the current metal prices, with direct and indirect employment opportunities for up to 10,000 people.

“The project’s entire scope has been designed to adhere to all applicable Ethiopian laws as well as the highest international standards in terms of social, environmental, governance, financial, and technical requirements,” said Harry Anagnostaras-Adams, chairman of KEFI, at the event. “Following receipt of all necessary government approvals, full development will begin in phases, with production beginning 24 months later.”

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Total project expenditure exceeds 90 million USD so far, with additional 390 million USD planned for initial development. 

Ethiopian Investment Conference, Invest Ethiopia, is the premiere investment forum in Ethiopia organized by the EIC. The three-day forum, from April 26 to 28, convenes government officials, policymakers, and new and existing investors to discuss attractive investment opportunities and policy reform agendas showcasing different investment opportunities.

The forum has been organized annually since 2022. AS

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