Tulu Kapi gold project, Ethiopia – update

Drill core from the Tulu Kapi project

Photo by Kefi Gold and Copper

8th September 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


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Name of the Project
Tulu Kapi gold project.

Western Ethiopia.

Project Owner/s
Kefi Gold and Copper (formerly KEFI Minerals) will own 80% of the exploration and holding company for the government of Ethiopia, KME, which, in turn, will own 56% of Tulu Kapi Gold Mines Share Company (TKGM), thus bestowing Kefi with a 45% beneficial interest in the project.

Project Description
Tulu Kapi has an ore reserve estimate of 15.4-million tonnes at 2.1 g/t gold for 1.1-million ounces of gold.

Openpit gold production is estimated at 140 000 oz/y over a seven-year mine life.

Total life-of-mine production is estimated at 980 000 oz.

The conventional openpit mining operation will include a carbon-in-leach processing plant. The mine will be connected to Ethiopia’s electricity grid through a new 47-km-long, 132 kV dedicated power line relatively close to the country’s major hydropower-generation source. An emergency diesel power plant will also be installed to provide emergency backup power for critical process equipment in the event of grid power failure.

A preliminary economic assessment has indicated the economic attractiveness of mining the underground deposit adjacent to the Tulu Kapi openpit after the startup of the openpit and the repaying of project debts through positive cash flows.

Potential Job Creation
The project will employ 1 000 people directly and up to 10 000 people indirectly.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure

Planned Start/End Date
The company is confident that the project’s construction can start in 2023 and that the openpit mine will start producing gold in 2025.

Latest Developments
Kefi Gold and Copper has announced that almost all the prerequisites to begin construction at the Tulu Kapi gold project are now in place.

The company revealed details of where the project stands in an operational update issued on September 5. The update covers the period since the release of Kefi’s quarterly operational update on August 9.

The company has said it will remain focused on final credit and board approvals for the project financing ahead of the project launch in the fourth quarter.

In the past few weeks, syndicate lenders have met with the company in Addis Ababa to finalise details with the National Bank of Ethiopia regarding capital controls. A recent development has been the publication of a new NBE directive on August 14 concerning foreign exchange controls, which is now being combined with TKGM-specific project details.

The changes within the directive are positive for the country, and Kefi has said that it is incorporating them for its own situation. This is one of the final action points remaining to complete the Tulu Kapi financing package, according to the company. The meeting will address the specific details and documentation requirements flowing from these changes with respect to the Tulu Kapi development.

Other project finance syndicate members are meeting with the company and the Ethiopian Ministry of Mines (EMM) in Perth, Australia, addressing the few remaining loose ends with EMM-facing agreements. These parties have also been participating in instructive mine and processing plant inspections while in Australia.

A recent development was the publication by the EMM of a draft new Mining Proclamation, which is now being compared with TKGM-specific project details.

Field teams are meeting with local government in the zonal government centre Ghimbi and municipal government centre Genji, planning the launch of community programmes.

An independent technical expert working with the lenders, Behre Dolbear International, has conducted a report and provided confirmation of TKGM's preparedness for the development launch.

Key Contractors, Suppliers and Consultants
Lycopodium (plant construction); and Corica Group (mine services).

Contact Details for Project Information
Kefi Gold and Copper, tel +90 232 381 9431, fax +90 232 381 9071 or email


Edited by Creamer Media Reporter



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