Ethiopia’s Government to Increase Investment in Tulu Kapi Gold Mine

Tulu Kapi Gold Mine’s developer, KEFI Minerals, asked the Government of Ethiopia to increase its investment in the gold mining project.  

It was back in April 2015 that KEFI Minerals concluded agreements with Ministry of Mines, Petroleum and Natural Gas to develop gold in Western Wellega Zone, Oromia State. As per the agreement, the Ethiopian Government has a 5 percent free carried on interest on the gold mine.

The Tulu Kapi gold mine is currently being developed at a cost of 140 million USD. Up on the request of KEFI, Ministry of Finance and Economic Cooperation (MOFEC) agreed to invest 20 million USD on the project.

The British firm has now requested the Ethiopian Government to increase its contribution to the project. According to KEFI, “The Government has welcomed KEFI’s invitation to increase its equity above the USD 20 million committed to date and the discussion will be concluded soon”.

In the aim of fast tracking the gold project, there was a committee established by the prime minister, KEFI added. “The prime ministerial committee has reinforced its commitment to and collaboration with KEFI,” the company said.

Thus far, it is only MIDROC Gold engaged in large scale gold mining project in Ethiopia. Ministry of Mines, Petroleum and Natural Gas has also given large scale gold mining license for Ezana Mining which has joined hands with the US mining firm, New Mount, to develop gold in Tigray State.

Source: The Reporter

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