The Ministry of Mines is granting another extension for Kefi Minerals to acquire equity capital for its gold mining project in Tulu Kapi, Oromia Region. It is a third extension made for the mining firm since last year, with the latest deadline being the end of last month.
The one-month extension was made as officials of the company strive to provide evidence to the Ministry that they have secured the necessary financial requirement needed for the gold project.
Executives of Kefi Minerals are required to present USD 80 million in equity contribution based on the request made by the Ministry of Mining before the end of last month. The new extension was granted with a view to support the mining plant in registering equity capital at the National Bank of Ethiopia (NBE).
Authorities require the fund to be deposited in a bank recognized and validated by the central bank. But Kefi executives want their expenses spent thus far to be considered as part of their equity contribution.
In a statement issued on June 30, 2022, Kefi announced it has completed the assembly of the information requested by the Ministry of Mines. It said it has started conducting meetings with the Minister of Mines, Takele Uma and his team to clarify any aspects.
The company also said it has signed an umbrella financing agreement for the Tulu Kapi gold mine development in Ethiopia. The umbrella funding structure is designed in strict compliance with the policies and guidance of the NBE, it added.
“The signing of the Umbrella Agreement is a very important step and we look forward to completing the outstanding matters that will allow for full project construction to commence in the Ethiopian dry season starting in October 2022,” said Harry Anagnostaras-Adams, its Executive Chairman of KEFI.
He says no other mining project of this scale in Ethiopia has been brought to this stage of advancement during recent years. Tulu Kapi will be the first industrial scale mining development in Ethiopia in over 30 years.
“It has taken extensive technical re-design of the Project, overhaul by the Ethiopian authorities of financial policies, which previously hindered mining project finance and the patient and cautious traversing of recent well publicized events in the country,” he said.