Aim-listed Kefi Gold and Copper has assured shareholders that it remains confident of project company Tulu Kapi Gold Mines Share Company’s (TKGM’s) ability to deal with any security situation, in accordance with its mining licence requirements and normal industry practices.

This follows an October 16 report by a local Ethiopian newspaper that the Ethiopian Ministry of Mines had rejected any claim that security was impacting on the launch of the Tulu Kapi gold project and reasserted the need for the company to demonstrate readiness to launch by October 31.

Kefi notes, in an October 18 release that, in September, a serious safety and security incident occurred in the West Wolega zone, and specifically in the Tulu Kapi district, affecting the project.

It adds that TKGM 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.

“The Ministry was immediately informed of the potential impact on the project timetable and that financing preparations, nevertheless, continued in earnest within the constraints of those temporary security restrictions,” the company states.

Kefi says the Ministry wrote to TKGM on October 11 questioning whether security was an issue impacting on the project and demanding that TKGM respect its obligations under the regulations.

“This topic was reported by local media publication without checking any aspects with either Kefi or TKGM, which is majority-owned by Kefi and partly owned by the Ethiopian government and the regional government of Oromia.

“Unreported by the local media outlet is the fact that TKGM responded promptly, updating the Ministry of the security situation and confirming that it indeed continued to comply and fulfil its licence obligations.

“These compliance requirements are set out as conditions of the project mining licence and the consequential detailed work plans submitted from time to time –  all are industry-standard requirements for any licensee, its contractors and its financiers,” Kefi states.

“The company wholeheartedly agrees with the Ministry of Mines' determination to start the project as soon as physically possible,” it states.