The UK-listed mining company, Kefi Minerals, suspended operations in Oromia Region over security concerns.
KEFI's flagship project is Tulu Kapi in the Oromia Region of Western Ethiopia, located approximately 360km due west of Ethiopia’s capital, Addis Ababa. Gold production is currently estimated to average 140,000 ounces per annum over the seven years of mining the open pit at Tulu Kapi, according to the company.
In September 2021 a serious safety / security incident occurred in the West Wolega Zone, and specifically in the Tulu Kapi district, affecting the Project, in respect of which all local stakeholders were immediately notified, according to the mining company.
"We have duly obeyed the instruction of the relevant Ethiopian Government authorities to temporarily suspend Project site visits and inspections which had been scheduled for the coming weeks as part of the standard procedures for Project financing and launch, Kefi said in its statement.
Officials of the Ministry of Mines blamed KEFI's executives for using the insecurity in the area to justify the delay of the project and use this as an excuse to ask for the extension of the deadline, which it was given to start extraction. The deadline will end this month.
“The Company wholeheartedly agrees with the Ministry of Mines’ determination to start the Project as soon as physically possible," said Harry Anagnostaras-Adams, Executive Chairman of KEFI.
Based on our enquiries, we believe that not all facts were understood within the Ministry at the time of the media interview and we are confident of fair and reasonable decision-making when all facts are compiled and reported with due process, he added.
Sources at the Ministry told Birrmetrics the company's license would be revoked if it failed to meet the deadline.
"We have zero tolerance as the company has been already given enough time to show a progress," the source added.
