December 25, 2021

Additional budget allocated to further Tulu Kapi gold mining project

City: Addis AbabaEconomyBusiness

The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalized in April 2015.

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By Addis Zeybe

Addis Zeybe is a Digital News Media.

Additional budget allocated to further Tulu Kapi gold mining project

KEFI shareholders announced on Dec 22, that it will allocate an additional 800 million Br.for developmental projects, which are the launch of Tulu Kapi in Ethiopia and KEFI’s two other development projects in Saudi Arabia, Hawaii Copper & Gold and Jibal Qutman Gold.

According to a statement from KEFI, the capital raised from its 5,000 shareholders on the London Stock Exchange was £13 million (US$18 million or 800 million Ethiopian Br).

The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalized in April 2015. The terms include a 20-year Mining License, a 5% Government free-carried interest, and full permits for the development and operation of Tulu Kapi.

Tulu Kapi Gold Mine is located 28km east of Ayra-Gulliso town in the state of Oromia, Ethiopia. The mine is owned by KEFI Minerals, who bought 100% of the license held earlier by UK-based gold exploration and development company Nyota Minerals (Ethiopia) by 2014. 

“The modern discovery of the industrial scale gold deposit at Tulu Kapi was approximately 15 years ago and KEFI was invited to take control in 2014 to introduce the latest international standards to the project.” According to Dr Kebede Belete, Chairman of KEFI Minerals Ethiopia Limited and Deputy Chairman of Tulu Kapi Gold Mines. 

The chairman added, “KEFI Directors and management themselves invested over US$2 million which is approximately 100 million Ethiopian Birr in today’s capital raising in London. By this investment, combined with their shareholding of more than 10% in KEFI.”

According to the chairman, “KEFI subsidiary KEFI Minerals Ethiopia Limited has already invested over US$70 million into Tulu Kapi Gold Mines Share Company and plans to further invest over $300 million or 13 Billion Ethiopian Birr for Tulu-Kapi project development, financed by its already assembled consortium.”

The launch of Tulu Kapi is expected to be in early 2022, as soon as the security situation In Ethiopia allows. The project is expected to generate direct employment for approximately 1,000 people from West Wollega and indirect employment for 5-10 times that number of people.