KEFI Gold and Copper has launched construction of its Tulu Kapi Gold Project in Ethiopia, projecting 375 million dollars in annual exports and 69 million dollars in yearly royalties and taxes once operational based on current global market prices for gold.
KEFI's projections for Tulu Kapi's annual gold exports would significantly surpass what Ethiopia's largest gold mining company has achieved historically.
Midroc Gold, the nation's dominant gold miner owned by Saudi billionaire Mohammed Hussein Al Amoudi, exported around 200 million dollars worth of gold at its peak production levels, according to industry analysts.
In a statement, KEFI announced commencement of early site works in preparation for full construction starting in October 2024. KEFI Chairman Harry Anagnostaras-Adams said: "Our launch timing is fortuitously coinciding with improving conditions in Ethiopia and record high gold prices."
KEFI has outlined plans to fund construction through a mix of debt and equity sources. The financing package includes 190 million dollars in secured debt from multilateral development banks, a $110 million equity risk note, and 20 million dollars in share subscriptions from federal and regional governments.
The returns for capital investors and lenders are attractive, and the recent exemptions from exchange controls have rendered the Ethiopian mining investment climate internationally competitive, Anagnostaras said.
Once in production, KEFI estimates the mine will employ 1,000 people directly and create 5,000–10,000 indirect jobs. The total investment is projected at half a billion dollars.
Scheduled to begin in October 2024, major construction activities involve international procurement, community resettlement, site works, drilling and the installation of infrastructure and processing facilities. Mining operations will also commence alongside a definitive feasibility study for underground expansion.
Anagnostaras-Adams added: "We are determined to ensure Tulu Kapi preserves its standing as a showcase project for Ethiopia."
