London-listed KEFI has closed a US$240mn debt financing to proceed with a pipeline of projects in Ethiopia, including the Tulu Kapi gold mine, as well as to pursue additional ventures in Saudi ArabiaThe Tulu Kapi gold mine project will tap into power supplies from the recently-inaugurated Grand Ethiopian Renaissance Dam (GERD), the largest hydro-electric scheme in Africa.The Ethiopian Electric Power Company is currently connecting the mine to the mains grid generation facilities at the dam, KEFI said in an update, which will include a new 132kV overhead power line via a substation at Gimbi town.The maximum demand for the Tulu Kapi plant is estimated to be 15 MW, with a normal operating demand of approximately 10 MW.An emergency diesel power plant will also be installed to provide backup power to start up and run the operation as insurance in case of any unexpected failure to deliver by EEPCO, according to KEFI, although it added that it does not expect to have to use the standby facility.In a statement, the company noted that Tulu Kapi is the closest industrial-scale electricity consumer of the GERD, which it said was “excellent for reliability of low-cost green energy”.The Tulu Kapi gold deposit was first discovered and mined on a small scale by an Italian consortium back in the 1930s.KEFI executive chairman, Harry Anagnostaras-Adams, said the new debt offering has triggered further activity at the site ahead of full project development.“With the gold price at a record high, this is the perfect time to be launching Tulu Kapi,” he said.Mining contractors have been at site planning for operations in 2027, with the bulk earthworks — for an airstrip and other initial works — set to commence in early 2026 after the government has resettled households in the area.The process plant contractor has also been at the site planning security and logistics for the delivery of components, which are currently being procured.The US$240mn loan agreement was signed with the Africa Finance Corporation and the Trade and Development Bank.KEFI has previously stated that the full development of the mine could be in the region of US$340mn, which means it must still raise a further US$100mn although some this is expected to come from a mix of equity, as well as support from the Ethiopian government.During construction at Tulu Kapi, the company also hopes to enhance its portfolio of gold and critical material licences and applications elsewhere in Ethiopia, as well as various projects in Saudi Arabia, across the Red Sea.Read more:
Ethiopia’s Tulu Kapi gold mine finance deal agreed
Construction of road to Tulu Kapi in 2025. (Image source: KEFI)
