Tulu Kapi Gold Mining announced that it has successfully concluded its 3-day workshop with representatives of government offices action planning the project launch over the next few months, starting with some immediate actions.
Tulu Kapi Gold Mine, a large-scale gold mining project in the nation, is located 28km east of Ayra-Gulliso town in the state of Oromia, Ethiopia. The mine is owned by KEFI Minerals, which formalized the Tulu Kapi Mining agreement with the Ethiopian Government in April 2015.
The company stated that Tulu Kapi Gold Mines and the various government agencies in attendance agreed on action plans during the 3-day workshop. The implementation of the first phase comprises action plans for the community resettlement, increasing employment of local personnel for site preparations, and upgrading of security protection as people movement increases, among others.
Local stakeholders in attendance included the community representatives of project-affected-persons, shareholders Ministry of Finance and Oromia Regional Government Administration President Office, together with West Wolega Zone Administration, Oromia and zonal land administration office, Rehabilitation and restoration agencies, Woreda Administrations of Genji, Gimbi and Lalo Asabi, Security forces, Ethiopian Roads Authority and Ethiopian Electric Power Company.
“This will be a first for many decades in Ethiopia and we all agreed over the past few days that it will be achieved by collaborative dedication to comply with the highest international standards for social, environmental, and technical performance,” said Harry Anagnostaras Adams, Chairman of KEFI Gold and Copper.
It is also disclosed that KEFI Gold and Copper PLC held recent meetings with the Ministry of Mines, Ministry of Finance, and the Office of the Prime Minster office to collaboratively work more intensely to finalize Government administrative clearances and other preparations for the project construction and operating contracts and financings.
The Tulu Kapi Gold Project will be one of Ethiopia’s largest export generators with the first full year of production targeted to be in 2025 at approximately US$250 million, employment approximately 1,000 direct jobs, and indirect employment of 5-10,000 people.
KEFI Gold and Copper PLC announced in March that it restarted the development of the Tulu Kapi gold project in Ethiopia after being postponed for five months on security concerns.
In December 2021, KEFI shareholders allocated an additional 800 million ETB for developmental projects, which are the launch of Tulu Kapi in Ethiopia and KEFI’s two other development projects in Saudi Arabia, Hawaii Copper & Gold and Jibal Qutman Gold.
With an Ore Reserve of 1.05 million ounces and Mineral Resources totaling 1.72 million ounces of gold, KEFI is advancing the Tulu Kapi Gold Project in Western Ethiopia towards development.
The terms of the KEFI’s agreement with the government include a renewable 20-year Mining License, a 5% government free-carried interest, and full permits for the development and operation of Tulu Kapi.
Following the completion of a definitive feasibility study, Tulu Kapi has continued to progress towards development with the appointment of contractors and subsequent work to solidify the estimates and further improve Project economics.