Kefi Pushes to Get its Ethiopian Gold Mining Project off the Ground

ADDIS ABABA – Officials of the Tulu Kapi Gold Mines SC (TKGM) held a workshop involving government agencies to discuss action plan with a view to launch its gold mining project in Tulu Kapi, Oromia Region..

KEFI Gold and Copper Plc, TKGM’s parent company, signed the gold mining agreement with the Government in April 2015.

However, the mining firm is still unable to get the project off the ground. Its officials say Kefi minerals is advancing the Gold reserve at Tulu towards development.

The latest workshop involving local, regional and federal agencies was aimed at working out action plans to launch the project “in careful stages over the coming few months,” mining firm TKGM said on Wednesday.

During the three-day, it said agreement has been reached on some immediate actions needed for launch.

These actions include the implementation of the first phase of the community resettlement, increasing employment of local personnel for site preparations, and upgrading security protection.

“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 A. Adams, Chairman of KEFI Gold and Copper.

The workshop came after recent meetings officials of Kefi minerals held with the Ministry of Mines, Ministry of Finance and the Prime Minister office.

The meetings discussed finalizing preparations for the mining project construction, operating contracts and financings, as per TKGM’s statement.

Kefi minerals is on deadline to acquire equity capital for its gold mining project after securing yet another extension.

Executives of Kefi Minerals are required to present $80 million in equity contribution based on the request made by the Ministry of Mining.

Authorities require the fund to be deposited in a bank recognized and validated by the central bank, according to The Reporter newspaper. But Kefi executives want their expenses spent thus far to be considered as part of their equity contribution.

The issue has put the Kefi license to be the first industrial scale mining developer in 30 years at risk.

Tulu Kapi Gold Project could become one of Ethiopia’s largest export generators. TKGM plans to start the first full year of production in 2025 and export gold worth US$250 million and create 1,000 direct and up to 10,000 indirect job opportunities.