(Ecofin Agency) - London-listed firm KEFI Minerals “officially” kicked off its first African mine, Tulu Kapi. The project was started amid a historic rise in gold prices. It should have been launched in Q4 2023.

After months of delays, construction works at the Tulu Kapi gold mine in Ethiopia have begun. KEFI Minerals, the project’s owner, announced the launch on May 20th. The project, the firm’s first mine in Africa, is expected to deliver 1.2 million ounces over an 8-year lifespan.

The Ecofin Agency reported that two major obstacles were overcome to start the project. First, the financing syndicate gave KEFI its approval to secure the funds it needed to move on with the project. Next, a permanent security force has been deployed at the project site and surroundings to ensure smooth progress.

Initial works include preparations for local population resettlement and engineering works. They should be completed in September. Completing this phase is necessary for finalizing financing by investors. Major construction works should follow in October. These include plant design and assembly, earthworks, and infrastructure and mining-related activities. 

"Our timing of the launch coincides fortuitously with the improvement of conditions in Ethiopia and gold prices at record levels [...]," commented KEFI Executive Chairman Harry Anagnostaras-Adams. At a gold price of $2,350/oz, the project is expected to generate $69 million annually in taxes and royalties.

The spot price of gold per ounce rose to $2,437 on Monday. Also, the project could create 1,000 direct jobs and up to 10,000 indirect jobs.

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