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 2027.

Latest Developments
Following inspections by the relevant independent certifiers, Kefi Gold and Copper has completed the required early works to allow for full project development.

Regarding initial major works, Kefi has said initial construction and security camps, property surveys and new host lands for the community have been brought forward into the pre-launch period. 

The company has said these, and other site tasks, have been certified as being in order.

Construction cost-escalation estimates and schedules have been updated and incorporated into the project finance plan and model, and are undergoing final review and certification for inclusion in the final definitive documentation.

Subject to final approvals, the updated finance plan remains consistent with recent guidance presented during the company’s annual general meeting, held on July 17, Kefi has said.

Definitive project documentation has been drafted and is in circulation.

Both co-lending banks have now approved the expanded $240-million finance package at credit committee level. 

One bank has also completed board ratification while the other is in the process of doing so.

The company has indicated that equity components of the finance plan will be drawn first, followed by debt drawdowns, and are being scheduled in line with the project disbursement schedule.

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.