Ethiopia's first commercial gold mine to begin production in 2026
Addis Ababa, Ethiopia (PANA) - Preparatory work has begun at Ethiopia's first commercial gold mine, the Tulu Kapi Gold Project, the company Chairman Harry Anagnostaras-Adams, said.
The mine is operated by KEFI Gold and Copper, which stated in its Annual Report for the year ended 2023 that early activity on the mine has commenced.
In Ethiopia, the firm is working with partners and banks to raise capital.
“Our focus is now on successfully completing the early works at Tulu Kapi so that we can close the US$320 million project finance package and launch major works in October 2024. Gold production would then commence in mid-2026,” the company said.
Early works include consulting the local community and other stakeholders to inform them on the mining project as well as preparatory works on the project site.
Major works would lead to production starting in 2026.
This is the first gold mine in Ethiopia that complies with World Bank IFC Performance Standards.
“We apply the same rules that are applied in advanced mining jurisdictions like Scandinavia, Australia and North America,” the firm said in a statement.
Gold and silver will be produced at the on-site factory to maximise value-adding locally.
All industrial chemicals used in the process will be recycled within the operation and neutralised before any waste material is deposited in the sites to be revegetated.
It is especially noted that detailed base-line surveys have been independently completed to ensure scientific monitoring from Day 1 and that no contaminants are present as is the case in many gold sites in Ethiopia where, unlike at Tulu Kapi, artisanal mining is common.
The firm said full transparency will be assured with websites, newsletters, observation platforms and inspection tours being provided A fortunate financial aspect highlighted in the KEFI Annual Report is the all-time-high gold prices.
The firm estimates that if gold prices go back under US$2,000/oz as they had been throughout history until very recently, many of the potential benefits of the projec would not be possible.
Export sales revenue in a good year could generate US$380 million.
The proceeds would be allocated to maximise long-term benefits for all stakeholders.
Approximately 50% or US$190 million would be spent on operating costs.
The finances would be mainly spent within Ethiopia and preferring local suppliers whenever possible.
Tulu Kapi will likely create 5,000-10,000 direct and indirect jobs.
The project would also continue to fund local development as prioritised by the separate Board of the Tulu Kapi Charitable Endowment.
Development activities will focus on long-term sustainable programs for the local communities directly impacted by Tulu Kapi.
-0- PANA AO/MA 18June2024
