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BusinessKefi calls latest developments in Northern Ethiopia positive turning point

Kefi calls latest developments in Northern Ethiopia positive turning point

It plans to start extraction before May 2022

Kefi Mineral, the gold exploration company with projects in Oromia Region, finds the latest developments in the northern part of the country as a positive development for its mining project in Tulu kapi. This comes just few days after it announced its plan to launch extraction before May 2022.

The company reported its optimism to initiate Tulu Kapi’s Gold Project while updating its shareholders about the security situation in Ethiopia and its current stance towards the project.

An allied military force, composed of members of the Ethiopian National Defense Forces, the Amhara Special Force, Fano and Local Militia drove out the forces of the Tigray People’s Liberation Front from significant portions of the Amhara region in the last two weeks, a development which Kefi sees as a very positive development.

This turning point in the military conflict reinforces KEFI’s optimism that peace will soon be restored in Ethiopia and, to this end, we also note that diplomatic efforts have recently been intensified with mediation now backed by the African Union, United Nations and major world powers, Kefi said in its statement.

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While affirming the company’s readiness to launch the Tulu Kapi Gold Project on time, Harry Anagnostaras-Adams, Executive Chairman of KEFI said “We are especially happy for our host country Ethiopia and its overwhelmingly peace-loving citizens. ”   

The London-based KEFI Gold Company has been facing challenges to deliver its projects in Tulu Kapi as per its plan because of security concerns. In September 2021, four of its employees were abducted by armed groups in Wollega Zone. That has forced the mining company to suspend operations for almost two months. The suspension of operations, however, led to a dispute with the Ministry of Mines, which blamed Kefi for failing to show progress.

The Ministry, under the leadership of Takele Uma, gave the company a two months deadline that would extend to the end of January 2021. Kefi is required to secure the necessary project financing for its project before the end of the new deadline.

In a presentation made two weeks ago, Kefi said it has identified full funding package of USD 356 million with financial close being prepared for the first quarter of the next year. The company expects USD 100 million in cash flow once it launches extraction.

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