Name of the Project
Tulu Kapi gold project.

Location
Western Ethiopia.

Project Owner/s
London-listed Kefi Gold and Copper (formerly KEFI Minerals) will own 80% of the exploration and holding company for the government of Ethiopia, KME, which, in turn, will own 56% of Tulu Kapi Gold Mines Share Company (TKGM), thus bestowing Kefi with a 45% beneficial interest in the project.

Project Description
Tulu Kapi has an ore reserve estimate of 15.4-million tonnes at 2.1 g/t gold for 1.1-million ounces of gold.

Openpit gold production is estimated at 140 000 oz/y over a seven-year mine life.

Total life-of-mine production is estimated at 980 000 oz.

The conventional openpit mining operation will include a carbon-in-leach processing plant. The mine will be connected to Ethiopia’s electricity grid through a new, 47-km-long, 132 kV dedicated power line relatively close to the country’s major hydropower-generation source. An emergency diesel power plant will also be installed to provide emergency backup power for critical process equipment in the event of grid power failure.

A preliminary economic assessment has indicated the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi openpit after the startup of the openpit and the repaying of project debts through positive cash flows.

Potential Job Creation
The project is expected to create about 1 000 direct jobs and 5 000 to 10 000 indirect jobs, with foreign direct investment of about $500-million, including historical investment.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
$320-million.

Planned Start/End Date
Production is expected to start in 2026.

Latest Developments
Kefi Gold and Copper has informed shareholders that it has received sufficient expressions of interest in the EthioBonds, in alignment with an updated finance plan for the project.

The company is preparing for the local listing of the bonds, with the financing facilities having increased from $190-million to $240-million.

Ethiopia is ratifying its membership to Africa Finance Corporation. The organisation is helping to bridge Africa’s infrastructure investment gap and expects to start final definitive documentation for project funding by the end of March.

The company continues to advance early works on site, having completed security and community preparations, and having started select major works to derisk the construction schedule.

Various parallel discussions to reach financial close on Tulu Kapi have progressed well, while discussions with the Ethiopian government on the company’s resettlement plan have also been pleasing, Kefi chairperson Harry Anagnostaras-Adams has said. 

The project is expected to start production at a rate of 140 000 oz/y from mid-2026.

Key Contractors, Suppliers and Consultants
Principal contractors: Lycopodium (process plant design and construction); PW Mining; the Ethiopian Electric Power Company; and the Ethiopian Roads Authority.

Contact Details for Project Information
Kefi Gold and Copper, tel +90 232 381 9431, fax +90 232 381 9071 or email info@kefi-minerals.com.