KEFI Begins Construction of $340m Tulu Kapi Gold Project in Ethiopia.

KEFI Gold and Copper has moved into the full construction phase at its Tulu Kapi gold project in western Ethiopia, following the completion of a $340 million financing package that positions the mine as one of the country’s largest upcoming gold producers.

The development is structured with $240 million in debt financing from the Africa Finance Corporation and the Trade and Development Bank, alongside $100 million in equity contributions. The equity portion was finalized earlier this month, including a $20 million gold royalty arrangement with Chancery Royalty, completing the project’s funding framework.

The Tulu Kapi gold project is scheduled to begin production in 2027, with an expected annual output of around 140,000 ounces. The mine’s initial life is projected to be seven years, during which total production is estimated at approximately 980,000 ounces, with potential for this duration to be significantly extended. Beyond the open-pit operations, the project has underground expansion possibilities, backed by an ore reserve of 15.4 million tonnes grading 2.1 grams per tonne, which equates to roughly 1.1 million ounces of contained gold.

Founder and Executive Chairman Harry Anagnostaras-Adams described the project as one of Africa’s highest-grade gold developments, adding that construction and operations are being implemented in line with international environmental, social, and governance standards.

Critical infrastructure is being developed in parallel. Ethiopian Electric Power is constructing a dedicated 47-kilometre 132 kV transmission line to connect the mine to the national grid, with engineering and plant construction led by Lycopodium. PW Mining and the Ethiopian Roads Authority are serving as principal contractors.

The project is expected to create approximately 1,000 direct jobs and up to 10,000 indirect employment opportunities. Total foreign direct investment associated with Tulu Kapi, including historical spending, is estimated at around $500 million, positioning the mine as a significant contributor to Ethiopia’s export earnings and to the expansion of its mining sector.

Commissioning is targeted for late 2027, with full commercial production anticipated in 2028, marking a major milestone in Ethiopia’s effort to strengthen its minerals sector and diversify foreign exchange sources.

Source:EBR