Grand opening of the first mine in Ethiopia in the last 30 years approaches

9th October 2023 Grand opening of the first mine in Ethiopia in the last 30 years approaches

Tulu Kapi Gold Project

Kefi Gold and Copper partnered with the Ethiopian government to develop the Tulu Kapi Gold Project. Tulu Kapi is placed in the Oromia Region, approximately 360km west of Addis Ababa. The planned Tulu Kapi operation is an open pit gold mine and processing which will apply standard technology and the latest industry practices.

Figure 1. Tulu Kapi Gold Deposits. Source: Kefi Gold and Copper Official

It is estimated that the ore reserve of Tulu Kapi is ca. of 1.05 million ounces and mineral resources totaling 1.7 million ounces. It is expected that that the planned gold production will be ca of. 140 000 oz/y. The all-in-sustaining cost is calculated at $950/oz.

Legal and financial blueprint

In April Kefi Gold signed the agreement which informed about the roles of all syndicates, finance conditions, and conditions precedent to final formal approval being granted. The agreement provided a blueprint of development for Tulu Kapi deposit through 2023 which was laid out for the Ethiopian Ministry of Mines.

The proposed project financing of about $320m, exclusive $70 mln for the mining equipment (provided by PWM), now provides for an up to $245m package from the co-lenders. The remaining project finance will consist of both debt-risk capital (includes senior and subordinated debt – $190 mln). Additionally, there will be equity-risk capital amounting to $130 mln.

In the past few weeks, a high-level meeting between syndicate lender and company representatives was organized in Addis Ababa. It aimed to approve the final funding proposal and syndicate, under the final umbrella agreement with the National Bank of Ethiopia. On August 14th the new NBE directive which is combined with project details was publicized. According to KEFI Gold and Copper, this was one of the final action points that enabled to complete the Tulu Kapi financing package.

Project starts

On October 5th KEFI Gold and Copper received formal confirmation from the National Bank of Ethiopia. From this day Tula Kapi project is fully permitted and only procedural administrative confirmations are remaining.

During the project realization, Harry Anagnostaras-Adams explicated: “We move forward successfully despite the complexities of such syndications and, in particular, being the first to do so against the backdrop of a fast-changing Ethiopia. It is heartening to witness Ethiopia proactively working to regain its position as one of the highest-growth countries globally. We thank the new FDRE Ministry of Mines, H.E Habtamu Tegegn, and his team for their energetic leadership and his commitment to rapidly advancing the mining sector in Ethiopia.”

KEFI Gold and Copper have also signed agreements with project contractors, PW Mining International Ltd and Australian project management company Lycopodium. PW Mining International Ltd will provide mining services and Lycopodium will provide all organized services including construction management supply and labor hire services.

The project launch will be in Q4 2023.

Next WMC Congress

World Mining Congress

2026

The 27th World Mining Congress will be organized in 2026 in Peru.

Learn more
27th
Next IOC Meeting

IOC / WMC Meeting

2025

The 106th IOC/WMC meeting will be organized on September 18th 2025 in Jakarta, Indonesia.

Learn more
106th

Our news Others news

22nd May 2025 Mineral lease is the milestone in U.S. offshore mineral development

Seabeds raw minerals. Source; Photo by Nathan Langer on Unsplash

To strengthen domestic critical mineral resources, the U.S. Department of the Interior is initiating a process…

22nd May 2025 Argentina gives green light to a $2.5 billion Rio Tinto’s lithium project

Lithium battery. Source: Photo by Vardan Papikyan on Unsplash

Argentina's government has given the green light to a $2.5 billion lithium mining project by Rio…

16th May 2025 Talon Metals with a record-breaking sulphide discovery

Yellow mineral rock. Source: Photo by Kin Shing Lai on Unsplash

Talon Metals Corp., the majority owner and operator of the Tamarack Nickel-Copper-Cobalt Project in central Minnesota,…

16th May 2025 Building a new global rare earth supply chain

Open-pit mine aerial view. Source: moritz-lange unspash

MP Materials, a leading U.S. rare earths miner, has entered a transformative partnership with Saudi Arabia’s…

12th May 2025 Saudi Arabia strengthens ties with the U.S. in mining and minerals sector

Truck during hauling process. Source: Photo by Dominik Vanyi on Unsplash.

Saudi Arabia is gearing up for a groundbreaking partnership with the United States in mining and…

6th May 2025 World Mining Data 2025 is available!

World Mining Data cover.

Data importance Data is the bedrock of modern decision-making, and in the world of mining, it's…

5th May 2025 XVIII International Conference on Open and Underwater Mining of Minerals

Seabeds raw minerals. Source; Photo by Nathan Langer on Unsplash

On September 8–12, 2025 in Astor Garden Hotel, Sts. Constantine and Helena Resort, Varna, Bulgaria, the…

28th April 2025 Impossible Metals with a huge milestone in deep-sea mining

Seabeds raw minerals. Source; Photo by Nathan Langer on Unsplash

A significant milestone in sustainable resource development has just been reached. Impossible Metals, a US-based innovator…

23rd April 2025 Novagold and Paulson confirm $1.0 billion deal

Gold fleak. Source: Photo by JUNXUAN BAO on Unsplash

Novagold resources has made a press release informing that with Paulson Advisers LLC have entered into…

16th April 2025 Happy Easter!

Sign on the Scrabble tiles: Happy Easter! Source: Photo by Priscilla Du Preez 🇨🇦 on Unsplash

Dear World Mining Congress International Organizing Committee Members and all Mining Industry Representatives! We are approaching…