Kefi Minerals to mine for gold and silver in Ethiopia's Oromia Regional State

goldmine-pixabayThe Ethiopian government has entered a gold development agreement with UK-based gold mining company Kefi Minerals

Ethiopia’s minister of mine Tolosa Shagi signed the agreement with Kefi Minerals. The UK-based company will mine for gold and silver in the Gonji Area, located in the western Wellega Zone of Oromia Regional State, over a period of 20 years.

The agreement marks the country’s second gold development for export, after the Adolla Goldmine, which is considered the oldest in the country.

Kefi Minerals has completed a feasibility study to show a reserve of 28 tonnes of gold. The open pit mine will generate projected revenues of US$1.06bn over a period of 11 years, of which US$120mn will be funnelled to the Ethiopian government in the form of royalties and taxes, according to non-executive chairman Harry Adams.

The UK-based minerals explorer is one among a growing number of foreign miners active in exploring and developing gold mines in Ethiopia.

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