KEFI Copper & Gold (KEFI ) has suspended development work at the Tulu Kapi mine in Ethiopia, following a security incident.
The company did not disclose the nature of the incident, but did reveal that there were a number of fatalities, including security personnel.
KEFI commenced development at Tulu Kapi in March, and had been making progress on the construction of an access road and with the electrical connection.
KEFI said it was deeply saddened by the loss of loss of life.
It has suspended development pending the results of consultation with relevant community representatives, Ethiopian government authorities and security stakeholders to determine the appropriate conditions for a safe and orderly resumption of activities.
The company said it will not resume development activities until appropriate measures have been established to provide a safe and secure operating environment for its personnel and the surrounding communities.
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KEFI has said that it has sufficient capital reserves and committed standby facilities to support its anticipated requirements during the period of suspension, so there is no immediate threat to the company’s position. However, the development timetable is likely to be thrown into disarray by this news, and the market isn’t likely to enjoy the added uncertainty.