The Tulu Kapi gold mining project, located near the town of Gimbi in Ethiopia's Oromia Region, West Wollega Zone, has officially commenced construction with an estimated investment of US$330 million.
Spearheaded by KEFI Gold and Copper, the project is projected to yield an average of 166,000 ounces of gold annually. According to reports, the initiative faced a six-to-seven-year delay due to security and geopolitical hurdles.
Backed by a financing package exceeding US$400 million, the venture includes a US$20 million equity contribution from the Ethiopian government, securing a 17% stake in the project.
Operations will combine open-pit and underground mining methods. Commercial production is slated to begin by late 2027, with full operational capacity expected by mid-2028.
Harry Anagnostaras-Adams, CEO of KEFI, emphasized that Tulu Kapi is classified as a strategic project for Ethiopia. He noted that it will play a pivotal role in boosting the mining sector's contribution to the country’s Gross Domestic Product (GDP) from its current 1% to a target of 10% over the coming decade.
Historical records show that KEFI acquired a 75% stake in the project from Nyota Minerals in 2013, followed by full 100% ownership acquisition in 2014. A revised feasibility study was conducted in 2015 amid low global gold prices, subsequently securing the mining license.
Despite initial progress, ongoing security challenges and financing hurdles prolonged development. However, the company confirmed that funding is now fully secured and highlighted the robust support extended by the Ethiopian government at all levels.
This momentum was underscored by a recent groundbreaking ceremony attended by Prime Minister Dr. Abiy Ahmed and Oromia Regional State President Shimelis Abdisa.
At the event, Prime Minister Abiy remarked that the Tulu Kapi gold development initiative serves as a prime example of how the nation can responsibly leverage its natural resources for the benefit of the country and its citizens.
Concluding his remarks, CEO Anagnostaras-Adams stated that anchored by the Tulu Kapi and Kurmuk projects, Ethiopia holds immense potential to emerge as a major global gold-producing nation, as reported by Mining Review Africa.
