KEFI Minerals, London-listed mining company signed a contract with the Ethiopian government on Monday, April 13, 2015 to mine Gold and Silver in Ethiopia, Reuters UK reported.

KEFI has taken over exploration rights for the Tulu Kapi project in the Oromia region from Australia’s Nyota Minerals Ltd.

The deal lasts for 20 years and KEFI plans to mine for Gold and Silver over an area of 7 square kilometers. It plans to produce 28.6 tons of Gold in the coming 11 years.

“Production will be in 2017, and 2016 will be the year of construction,” KEFI Chairman Harry Anagnostaras-Adams said at the signing ceremony in Addis Ababa, Ethiopia.

Gold is Ethiopia’s second-largest export revenue generator after Coffee, and earned an average of USD 450 million to USD 500 million a year for the last five years.

"We hope this mining of gold and silver will contribute to our national economy, especially in foreign currency," Mines Minister Tolesa Shagi said, adding he expected the firm to deliver revenues of $1.6 billion to the state over 11 years.

Tulu Kapi is going to be Ethiopia’s second mine after Lege Dembi, in the Adola gold belt about 300km Southeast of Addis Ababa. Lege Dembi is operated by Midroc, a firm owned by Saudi-Ethiopia businessman Mohammed al- Amoudi.

Source: Reuters UK