Gold Mining Company Looks to Turn a Corner

Feb 25 , 2023

A London-based gold mining company survives the woes of licence revocation after the central bank granted a final extension to pay the remaining 80 million dollars in equity capital for the gold mining project at Tulu Kapi, Oromia Regional State. Several months ago, authorities issued a warning of possible retraction over KEFI Gold and Cooper Plc's delay to present the remaining equity capital for the project. Last week, the Chairman of KEFI, Harry Adams, discussed the remaining consents and approvals left to commence the project with officials from the Ministry of Mines, National Bank of Ethiopia and Ministry of Finance. “The regulatory and legal issues are yet to be resolved,” said Habtamu Tegegne, Minister of Mines. KEFI had faced a series of setbacks since its emergence in the country in 2016, with Tulu Kapi allegedly encountering security issues, forcing it to halt operations four years ago. The Tulu Kapi project, located approximately 360km southwest of Addis Abeba, includes an ore reserve of over 1.1 million ounces and mineral resources totaling 1.7 million ounces of gold. The mining firm estimates over 250 million dollars in annual export revenue, employing approximately 1,000 individuals. Officials expect the company, along with Tulu Kapi Gold Mines Plc, a subsidiary of the UK KEFI, to start full production in 2025.