The Ministry of Mines granted a six-month extension to the British mining company, Kefi Gold, to commence its gold mining operation in the Tulu Kapi reserve.
Kefi Gold and Copper, which was licensed in 2015 by the Ministry of Mines, to develop the Tulu Kapi gold reserves, had received several warnings from the Ministry, over the past year alone.
The last warning letter was issued to the company last September. The company was given an instruction to start gold production by the end of January.
The Ministry of Mines, led by Takele Uma, believes the company does not have the financial means to launch the project. The company, on its part, said security problems in the area had prevented it from getting the necessary funding from lenders.
However, on February 7, 2022, the Ministry of Mines and the company met to resolve the issue, after which it was granted an additional six-months extension.
“With the hope that your company will secure a finance from its syndicates and procure the necessary documentation to assert your equity share of the project, the Ministry has decided to give you further extension, in addition to the extensions previously granted,” Takele Uma said in his letter issued on February 8, 2022.
The extension will last until July 8, 2022, Takele said.
He also urged the company to put all the efforts needed to fulfill their contractual obligations.
“Please, be aware that the six month extension will remain in effect so long as you provide the Ministry with genuine progress report every month,” Takele said in his letter, noting that the extension is not related to any issues that has been raised by the company. “It is merely the Ministry’s generous offer and unreserved support to the viability of the project,” Takele said.
In his comments following the extension, Harry Anagnostaras Adams, CEO of Kefi Gold and Copper, acknowledged the Ministry’s patience and support to the company.
“We are proud to have the support of the Ethiopian Ministry of Mines. Our common agenda is to expedite development, production and economic benefits. I have no doubt that Ethiopia’s minerals sector has an exciting future,” Adams said.
However, the company still has security and other administrative issues that need to be resolved to secure over USD 300 million funding needed to launch the project.
