KEFI Minerals to invest US$130 mln amid instability, rights abuses

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5-9-2016

London-listed gold and copper exploration and development company, KEFI Minerals plc (AIM: KEFI) is to US$130 mln in its Tulu Kapi gold project in Western Oromia region of Ethiopia amid unprecedented anti-government protests, instabality and attack on large scale projects in Oromia and Amhara regions of Ethiopia.

The investment website, proactiveinvestors, today reported “KEFI said that plans to develop the Tulu Kapi gold project in Ethiopia remain on track and that there had been “no slippage” in the current development cost estimate of US$130 mln.”

The Tulu Kapi Mining Agreement between the Ethiopian Government and KEFI was formalised in April 2015. The terms include a 20-year Mining Licence, full permits for the development and operation of the Tulu Kapi gold project and a 5% Government free-carried interest.

The Tulu Kapi gold deposit was discovered and mined on a small scale by an Italian consortium in the 1930’s.

Diamond Drilling in Tulu Kapi (Courtesy of kefi-minerals.com)

Trenching in Tulu Kapi (Courtesy of kefi-minerals.com)

Ethiopia is currently politically unstable and several Western and international investors have been burnt to the ground by protesters calling the government to step down. Many investors are either pulling out or waiting until the political transition has been completed.

Locals do also feel discriminated and not-benefiting from the investments.