(Ecofin Agency) - As Ethiopia seeks to enhance its industrial gold production, various initiatives are aligned with this ambition. Among them is the Tulu Kapi project, which aims to start production by 2026 with an annual output of 140,000 ounces.

KEFI Gold and Copper is moving closer to securing the $240 million needed to develop the Tulu Kapi gold mine, in Ethiopia. The company announced on March 18 that the boards of directors of two banks involved in the financing have approved the loan, following earlier approvals from their credit committees.

"After a decade of preparing Tulu Kapi and overcoming various external challenges, we're pleased to have secured Tier 1 support from the Government, industry specialists, and financial institutions to initiate development,” said the executive chair and founder of KEFI Gold and Copper, Harry Anagnostaras-Adams. 

Despite this milestone, KEFI must still meet several conditions to finalize the financing. Among others, the Ethiopian Parliament must give its approval to one of the lenders. The other already obtained the green light. KEFI must also secure some certifications related to safety, community readiness, and the project’s financial model. The company expects to complete these steps and sign definitive documentation by March 31, paving the way for construction to begin.

Tulu Kapi mine is projected to produce 140,000 ounces of gold annually over its seven-year open-pit operation. An underground mining phase is also planned. If successful, the project could play a key role in Ethiopia’s efforts to revive industrial gold production and fully exploit its mineral potential.

Aurel Sèdjro Houenou (intern)