The Ministry of Mines approved the proposal submitted by KEFI Minerals (KEFI) to develop the Tulu Gold mine which is located in Western Wellega Zone Oromiya Regional State last week, according to The Reporter.

KEFI, the gold exploration and development company with projects in Saudi Arabia and Ethiopia, stated its application is at the table of the Council of Ministers waiting for approval to execute a mining agreement and sort out other side issues to operate the project for the next 20 years.

The expenditure to be funded by the company for the project had been reduced from 150 million to 120 million dollars based on initial bids received from mining contractors and terms on offer to the company for the purchase of selected process plants, according to KEFI.

KEFI plans to draw its fund for the development by aggregating debt and equity financing.

Harry Anagnostars-Adams, Executive Chairman said, “we will be quick to receive the Mining License and advance our funding plans to start the development in 2015 and in 2017 for production.”

The Tulu Kapi deposit was first discovered and mined on small scale by an Italian consortium in the 1930’s.

Source: The Reporter