KEFI Minerals (LON:KEFI), the gold and copper exploration and development company with projects in the Kingdom of Saudi Arabia and the Federal Democratic Republic of Ethiopia, provides an update on the situation in Ethiopia following the resignation of the Prime Minister last week.
KEFI’s activities have been unaffected as regards its daily interface with the various government agencies and with the community at Tulu Kapi. Everyone we deal with appears to regard the Prime Minister’s resignation as a sincere step to the facilitation of broader democratic representation in Government. The concurrently announced State of Emergency appears generally regarded as a preventative measure to ensure peace and order during the leadership transition.
Meanwhile, the Ethiopian Ministry of Mines, Petroleum and Natural Gas has signed off the transfer of the mining licence from KEFI Minerals (Ethiopia) Limited (“KME”) to Tulu Kapi Gold Mines Share Company Limited, the jointly-owned project company now owned by the Government of Ethiopia (via the Ministry of Finance and Economic Cooperation) and KME. TKGM’s joint KEFI-Government Board of Directors has approved the business plan for the mine development to commence as soon as the regulatory authorities allow TKGM’s financing agreements to be finalised and implemented. A key feature of the TKGM business plan is for local people to be trained as the operators, with over 1,000 jobs being created through the region around Tulu Kapi during construction.
The Company believes its finance plans remain unaffected because it has targeted certain regional financiers (both debt and equity), including some who already have a long-term presence in Ethiopia.