KEFI Gold & Copper (KEFI ) is now well advanced with the phase 1 resettlement action plan at the Tulu Kapi project in Ethiopia.
This involves clearing the mining licence area for the installation of initial infrastructure.
All compensation agreements are now completed and preparations for the Phase 2 RAP, covering the open pit mining and plant areas are now underway.
Meanwhile, project equipment procurement continues as planned, with more than 50% of major equipment already ordered or ready for ordering.
Contractors Lycopodium, EEP, ERA and BCM are all installing their own personnel, subcontractors and systems at Tulu Kapi.
Physical progress on the ground at Tulu Kapi to date includes the construction of houses away from the mining licence area, installation of an electrical substation and a new access road from the bitumen highway to site.
The Tulu Kapi Charitable Endowment has started several community initiatives designed to complement the project and support long term local sustainable enterprises and agricultural projects.
All key project milestones at Tulu Kapi are tracking on schedule, with commissioning targeted to commence in late 2027 for full production in mid-2028 from the open pit and process plant.
And over in Saudi Arabia, a final investment decision for the Jibal Qutman project is expected in the second half of this year.
"Following the successful assembly of the Tulu Kapi financing arrangements for the open pit and process plant, our focus is firmly on project execution and on closing the debt drawdown processes,” said Harry Anagnostaras-Adams, executive chairman of KEFI.
“Progress across community resettlement, plant procurement and construction sub-contractor tendering is in line with schedule. We have developed strong working relationships with government, local communities, and our international financing and contracting partners. Whilst global markets have been volatile for our sector, in particular since the start of the Iran War, our implementation programme remains on track. We are well-positioned and we continue to work closely with all stakeholders to deliver Ethiopia's first modern, internationally financed gold mine. We are also advancing development plans for self-funded production growth at Tulu Kapi and in the minority-owned portfolio in Saudi Arabia, and to establish a platform for a portfolio of projects across Ethiopia and the region."
View from Vox
The gold price has been moving around a lot, but KEFI’s development finance is locked in and its margins still look comfortable. Good to see the development work well underway, as planned, and that the timetable for commissioning and first production remains intact. Tulu Kapi is a big deal for Ethiopia, and it’s a big deal for KEFI too. So far, so good.