By: African mining market

KEFI Gold and Copper PLC says it is on course to break ground at its Tulu Kapi project by the end of 2025, marking what could be a turning point for Ethiopia’s emerging mining sector.

The company confirmed that its full development plan for the high-grade gold deposit has now been agreed by the project syndicate, clearing the way for construction once the remaining financial steps are completed.

Speaking at the MINTEX Ethiopia conference over the weekend, Harry Anagnostaras-Adams, KEFI’s executive chairman, told an audience that included Ethiopia’s minister for mines, lenders and local investors that the groundwork for launch is essentially complete.

The company has now finalised the project’s US$340 million budget, a sizable package for a country looking to expand its minerals industry.

Of that, US$240 million will come from debt facilities, which have been fully approved. Equity proposals have exceeded the remaining US$100 million target, giving KEFI room to fine-tune the balance of investors.

The next steps are procedural but important. KEFI expects to spend one week optimising the equity structure and another week completing the remaining documentation needed to close the financing.

The company is also aiming to bring in both public and private Ethiopian investors using local currency, and is preparing the ground for a future stock exchange listing of its Ethiopian subsidiary.

A Memorandum of Intent outlining these commitments has been signed by all major stakeholders, including federal and regional authorities, lenders, the sovereign wealth funds of Ethiopia and Oromia, local contractors and the project’s charitable foundation.

With the framework agreed, KEFI plans to escalate development activities, starting with community housing and early work on processing plant infrastructure.

The company is also looking at whether excess local capital could help accelerate long-term plans such as underground mine development, regional exploration and community programmes.

If the schedule holds, Tulu Kapi could become Ethiopia’s next producing gold mine, something the government has been keen to support as it tries to attract more global mining investment.

KEFI is developing Tulu Kapi through its subsidiary, Tulu Kapi Gold Mines.