Kefi granted mining licence for Tulu Kapi project
Aim-listed Kefi Gold and Copper has been granted a mining licence for the Tulu Kapi copper and gold project, in Ethiopia.
The mining licence is valid until 2035 but conditional on Tulu Kapi Gold Mines Share Company securing project finance by January 31, 2022.
Kefi says the lead finance parties have already been collaborating for more than three years in preparation for the project, during which time technical and legal due diligence has been completed.
The significant progress made on the project to date places Tulu Kapi as a first-mover in modern Ethiopian large-scale mining.
The company has advised that the Ethiopian Federal Council of Ministers on November 2 declared a nationwide State of Emergency in response to ongoing conflict in the country’s Tigray region, which is about 250 km from the capital city Addis Ababa, but about 1 000 km from Tulu Kapi.
“While the geopolitical environment has proved more challenging than what was envisaged at the time of the company's arrival in Ethiopia in 2014, the opportunity and potential value from the project is larger and more important than it has ever been,” Kefi says.
Commissioning of the project is planned for 2023, with key development activities due to start in December this year.
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