KEFI Gold and Copper Advances Tulu Kapi Gold Project in Ethiopia

KEFI Gold and Copper PLC, a pioneering mining company in Ethiopia, has achieved a significant milestone in the development of its Tulu Kapi gold project. The company has secured a favorable debt-to-equity ratio of 80:20, a substantial improvement from the initial 50% borrowing limit imposed by Ethiopia’s closed economy.

Executive chairman Harry Anagnostaras-Adams highlighted the complexities of raising substantial funds in a new jurisdiction for mining, emphasizing the challenges and achievements in navigating development banking and financing in a frontier market. In an interview with Proactive’s Stephen Gunnion, Anagnostaras-Adams discussed the normalcy of the project’s development pace, considering the pioneering nature of their work in Ethiopia, including overcoming regulatory obstacles and securing protections necessary for mobilizing the required capital and personnel.

The recent regulatory changes have positively impacted the project’s finance costs, enabling KEFI Gold and Copper to utilize more lower-cost capital, significantly benefiting the $320 million project. Initially facing a closed economy with a 50% borrowing limit, the company secured a major concession allowing a 70:30 ratio, which was further improved to 80:20 by the National Bank of Ethiopia.

Looking ahead, KEFI Gold and Copper aims to finalize agreements and refresh key components of the project by the end of May, with a final model and schedule set by the end of June. This includes updating the plant costing, property surveys for resettling communities, and adjusting the mining contractor’s rise and fall clause for inflation. The company is coordinating with every syndicate party across various countries to ensure alignment and adherence to the timeline, emphasizing the collaborative effort to navigate development funding in Ethiopia. Proactive’s article provides further details on KEFI Gold and Copper’s progress towards financial close for the Tulu Kapi gold project in Ethiopia.

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