KEFI Minerals reassures investors amid Ethiopia state of emergency

KEFI Minerals sought to reassure investors on Monday that the resignation of Ethiopia’s Prime Minister, Hailemariam Desalegn, will not have an impact on the company’s activities in the country.

A state of emergency which was set to last six months was imposed in Ethiopia during the week before in response to the resignation, with defence minister Siraj Fegessa saying the country was clamping down on unrest, protests and publications "that could incite and sow discord".

In a statement, KEFI said that its activities have been unaffected "as regards its daily interface with the various government agencies and with the community at Tulu Kapi."

In the meantime, KEFI’s joint project for mine development with Tulu Kapi Gold Mines Shared Company, a firm owned by both KEFI and the government of Ethiopia, was set to commence once regulators had allowed financing arrangements to be finalised and put into effect.

The project was set to create over 1,000 jobs in the Tulu Kapi area.

KEFI Minerals was formed in 2006 with the aim of developing profitable gold and base metal mines in a cost-effective manner and was currently developing projects in Ethiopia and Saudi Arabia.

As of 1634 GMT, KEFI Minerals’ shares were down 7.25% to 3.20p.