JOHANNESBURG (miningweekly.com) – Gold exploration and development company Kefi has signed a mining agreement with Ethiopia’s Ministry of Mines to further its 1.9-million-ounce Tulu Kapi project, in the west of the country.
The Aim-listed company said the mining agreement on its 100%-owned mine was a “landmark achievement” that enabled it to start development of this high-value and low capital expenditure (capex) asset.
Kefi executive chairperson Harry Anagnostaras-Adams added that the company was grateful for the cooperation, vision and support of Ethiopia’s government.
“The economic and social benefits that Tulu Kapi can bring to Ethiopia are significant. We remain on track for development to start in 2015, leading to commissioning at the end of 2016, for production in 2017,” he noted.
Ethiopia Mines Minister Tolassa Shagi Moti commented that responsible mine development was a high priority for the government.
“We are pleased to have approved the Tulu Kapi gold project. We acknowledge and appreciate Kefi’s professionalism and dedication in getting the project back on track. The joint effort with our Ministry officials has also served to pave the way for other mining projects to follow.”
Meanwhile, Kefi noted that it expected to reach a number of other milestones during the year, including the independently refined and verified mine plan; verified capex, operational expenditure and closure costs; independently verified ore reserves; and an updated definitive feasibility study.
The company would also aim to achieve the formalisation of a bank syndicate, the agreement of final terms for project finance, securing full development funding and start construction.