KEFI Minerals gets key government approvals for Tulu Kapi project

Gold exploration and development company KEFI Minerals has now received the key development and financing policy approvals for its Tulu Kapi Gold Project from the Ethiopian Government, it announced on Tuesday.

The AIM-traded firm said that, having received project approval in 2015, its project company Tulu Kapi Gold Mines Share Company (TKGM) had now received Ethiopian central bank approval for the project banking arrangements, complementing its approvals of proposed balance sheet capital ratios and TKGM's right to hedge the gold price.

It said that, whilst the remaining required government consents were important, they were in essence the implementation of administrative matters, which included the registration of actual audited historical investment, registration of the updated project development plan for its latest refinements, approval of the finance-lease structure, finalised project insurance policies and the various ancillary local permits that can only be granted upon TKGM taking possession of the project land from all resettled households.

“The government has certainly accelerated the pace in recent times as regards the various regulatory processes for this, the first modern mine development in Ethiopia,” said KEFI managing director Harry Anagnostaras-Adams.

“All major policy matters are now resolved for the project.”

He said there was “every sign” that the just-appointed government leadership at the federal, Oromia regional and local levels were focussed on making the project happen successfully and smoothly.

“KEFI and its partners in project company TKGM are very appreciative of the priority given to the project at the same time when so many transformational changes are being made in Ethiopia generally.

“It is an exciting time to be establishing a new sector in Ethiopia.”