Ethiopia’s Tulu Kapi Gold Mine Nears Construction Following $340M Funding Boost
Mining News | 2026-01-01 07:02:13
Early-stage works are underway, including staff housing, power connections and road access, as preparations intensify for full construction.
By Paul Ploumis
SEATTLE (Scrap Monster): Ethiopia’s long-delayed Tulu Kapi gold project has reached a critical milestone after securing approximately $340 million in development financing, paving the way for construction of one of the country’s largest gold mines.
The funding package includes about $240 million in long-term debt from African development finance institutions and roughly $100 million in equity, giving KEFI Gold and Copper the strength needed to advance into full-scale development.
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KEFI Executive Chairman Harry Anagnostaras-Adams said the signing of the Tulu Kapi debt facility by all relevant parties has triggered renewed activity at the site and enabled the finalisation of remaining equity commitments with local and specialist investors. He noted that gold prices support the project’s launch.
Early-stage works are underway, including staff housing, power connections and road access, as preparations intensify for full construction. Located 360 kilometres west of Addis Ababa, the Tulu Kapi mine is expected to produce 164,000 ounces of gold per year during its first seven years, with commercial production targeted for 2027.
The project is being developed in partnership with the Ethiopian government, which holds a carried interest and equity stake, supporting Ethiopia’s drive to strengthen foreign currency earnings.
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Which factor is likely to have the biggest impact on the success of the Tulu Kapi gold project?
Frequently Asked Questions
- How much financing did the Tulu Kapi gold project secure?
Approximately $340 million, comprising $240 million in long-term debt and $100 million in equity.
- What construction work has started at the site?
Early-stage works include staff housing, power connections, and road access, laying the groundwork for full-scale mining operations.
- What is the expected gold production from Tulu Kapi?
The mine is expected to produce 164,000 ounces of gold annually during its first seven years.
