Africa-Press – Ethiopia. October 1, 2025 2 minutes read Addis Abeba – KEFI Gold and Copper has announced that its Tulu Kapi Gold Project in western Oromia, Ethiopia, is on track to begin full-scale development in October 2025, with site preparations nearing completion and key infrastructure and community programs already underway.
The project, 95% beneficially owned by KEFI through its UK subsidiary KME, is advancing with a phased approach designed to meet international environmental, social, and governance (ESG) standards while maintaining strong engagement with local communities and authorities.
According to KEFI, a new all-weather road to the site is nearing completion, with construction of an additional access road for heavy loads scheduled within the next two months. Procurement for the electricity connection has been finalized, and construction mobilization has already commenced.
The Tulu Kapi project was temporarily halted in 2021 as a precautionary measure due to security concerns before resuming in early 2022.
KEFI further noted that the regional government, supported by Tulu Kapi Gold Mines (TKGM), is advancing the “Resettlement Action Plan,” which includes compensation and phased relocation for local communities. The plan was initially launched in September 2022, when KEFI and government agencies agreed on measures for first-phase community resettlement, local employment, and security upgrades at the site.
The community resettlement process for the Tulu Kapi Gold Project commenced in July. The relocation of local residents, a prerequisite for construction at the site, is being implemented in collaboration with the Ethiopian government.
The company said the main mining fleet is expected to be procured in early 2026, with initial open-pit mining targeted for mid-2027. While operations will initially focus on open-pit reserves, KEFI confirmed that underground mine development is part of its long-term strategy to extend mine life and expand annual output to a targeted 200,000 ounces of gold.
KEFI described Tulu Kapi as a “showcase project” for sustainable mining in Ethiopia, emphasizing that development is being carried out in alignment with national priorities and in partnership with government, private sector, and community stakeholders.
The Tulu Kapi gold deposit, located 28 km east of Ayra-Gulliso in the West Wollega Zone of the Oromia Regional State, was fully acquired by KEFI in late 2014. The company estimates the site holds ore reserves of 1.05 million ounces and total mineral resources of 1.72 million ounces of gold.
In recent developments, the Oromia Mineral Development Authority (OMDA) has moved to assert greater control over licensing and compliance in the region’s fast-expanding mining sector. In a letter dated 5 August 2025, addressed to the Federal Ministry of Mines and copied to the Oromia Regional President’s Office, OMDA outlined new regulatory measures giving the regional government authority to issue, renew, or revoke mining licenses.
The move followed an Addis Standard investigation published on 19 July, which exposed the contested renewal of three exploration licenses held by Hong Kong Xingxu Mining International Investment Co. Ltd. in West Wellega Zone. Covering more than 1,170 square kilometers of gold and base metal prospects, the licenses were found to have been renewed in violation of legal time limits and without proper consultation with regional authorities. OMDA cited these breaches in its request for the licenses to be revoked. AS
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