KEFI Advances Toward Construction at Ethiopia’s Tulu Kapi Gold Project

KEFI Gold and Copper PLC has announced steady progress toward initiating construction at the Tulu Kapi gold project in Ethiopia by the end of 2025, a milestone that signals renewed momentum in the country’s mining sector. With all major development frameworks approved and most financing components approaching finalisation, the company is transitioning from planning into the launch phase of this long awaited project. This shift reflects growing confidence among both international partners and Ethiopian stakeholders that Tulu Kapi can become a cornerstone asset in the national mining portfolio.

A key development has been the full endorsement of KEFI’s comprehensive development plan by the project syndicate, which removes previous procedural barriers and enables preparations for on site activities. The project budget has been firmly set at US$340 million, providing a clear financial roadmap for construction and early operations. Out of this amount, US$240 million in debt financing has already received full approval, underscoring strong lender confidence. Meanwhile, equity proposals have surpassed the remaining requirement of approximately US$100 million, giving KEFI the flexibility to finalise the optimal equity structure within the coming weeks. The funding process is designed to include contributions from both public and private Ethiopian investors through local currency mechanisms, strengthening domestic ownership and aligning the project with national economic priorities.

The company is also preparing for the potential listing of its Ethiopian subsidiary on a local stock exchange. Such a move would increase transparency, broaden investor participation and deepen Ethiopia’s emerging capital markets. In parallel, KEFI has secured a Memorandum of Intent that brings together federal and regional authorities, lenders, sovereign wealth funds, contractors and community stakeholders. This memorandum creates a unified framework for cooperation and ensures that regulatory, financial and community interests are integrated into the next steps of development. Early stage work is expected to focus on community housing, processing plant foundations and other essential infrastructure required to support future full scale operations.

Looking ahead, KEFI is assessing whether increased mobilization of local capital could accelerate long term investment initiatives. These include possible underground mining extensions, expanded regional exploration programs and broader community development schemes that would enhance shared value creation. If the project adheres to its current schedule, Tulu Kapi is poised to become Ethiopia’s next producing gold mine, strengthening the country’s mining portfolio and contributing to wider economic stability. Its advancement could also stimulate greater investor confidence across Africa’s mining industry, illustrating how collaborative financing, strong regulatory backing and community partnership can drive sustainable resource development.

Mini Glossary

• Development plan, the detailed blueprint outlining how a mining project will be built and operated.
• Equity structure, the arrangement determining ownership shares contributed by investors.
• Sovereign wealth fund, a state owned investment fund that allocates national capital into strategic assets.
• Memorandum of Intent, a formal document expressing agreement between multiple parties to cooperate toward a shared goal.
• Capital markets, the financial system through which companies raise money by issuing shares or other financial instruments.