By: Ethiopia Today

KEFI Gold and Copper announced on Tuesday that it is advancing development of the $330 million Tulu Kapi Gold Project on schedule toward a mid-2028 operational launch in West Welega, Oromia Regional State, aiming to boost Ethiopia’s foreign exchange reserves and establish the nation’s first modern, internationally financed gold mine.

The operational update confirms that the host community resettlement process and major infrastructure construction have made substantial progress on the ground.

The Phase 1 Resettlement Action Plan covering the processing plant, airstrip, electrical substation, and construction camp has achieved 100% agreement on compensation packages with local landholders, with roughly 90% of funds already disbursed alongside ongoing permanent replacement housing construction.

Key public infrastructure partners, including Ethiopian Electric Power and the Ethiopian Roads Administration, are actively constructing a dedicated access road linking the site to the bitumen highway as well as an electrical substation to connect the facility to the regional power grid.

Meanwhile, project equipment procurement is accelerating rapidly, with over half of the major plant machinery, including heavy grinding mills, crushers, and water treatment systems, already ordered.

Beyond physical construction, the project integrates long-term community development alongside broader regional growth plans to ensure sustainable economic benefits for host communities.

The newly launched Tulu Kapi Charitable Endowment has initiated local agricultural programs and plant nurseries designed to foster food security and support long-term regional enterprises.

Financed through a $330 million global consortium in which the Ethiopian government holds a direct equity stake alongside a 5% free-carry interest, Tulu Kapi is projected to produce an average of 140,000 to 160,000 ounces of gold annually during its primary open-pit life.

Furthermore, KEFI has reassembled a dedicated exploration team in Ethiopia to evaluate prospective mineral targets nearby, reinforcing the project’s role as a primary catalyst for attracting future mining investment across the country.