Tulu Kapi was first mined on a small scale by an Italian consortium in the 1930s
Nyota Minerals acquired the licences in 2009, and KEFI acquired the project in two stages: 75% in December 2013 for £4.5 million, and the remaining 25% in September 2014. A Definitive Feasibility Study completed in 2017 has since been reviewed and refined with updated contractor pricing, terms and conditions.
KEFI’s flagship project is Tulu Kapi, an open pit gold mine in the Oromia Region of Western Ethiopia, roughly 360km west of Addis Ababa. With a Probable Ore Reserve of 1.05 million ounces and Mineral Resources of 1.72 million ounces, Tulu Kapi is fully permitted and now moving through full development, funded predominantly through non-dilutive, structured finance rather than share placings. KEFI holds an expected beneficial interest of approximately 86% in the project.
1.05Moz Reserve
A fully permitted, construction-stage gold project with significant expansion potential.
Development schedule
All onsite and offsite workstreams are tracking on or ahead of schedule, with commissioning targeted from late 2027 and full production targeted for mid-2028. Progress to date includes:
Engineering
Lycopodium has issued 14 detailed engineering packages for final approval, and EPCM contract packages covering engineering, procurement and construction management have been finalised.
Mining services
KEFI has signed a US$400 million mining services agreement with BCM Group for the initial nine-year mine life. BCM is already mobilised on site, providing mining, bulk earthworks and drilling services.
Procurement
The semi-autogenous grinding (SAG) mill, one of the highest-value and longest-lead items in the processing plant, has been ordered.
Community resettlement
Land has been prepared and construction of 350 replacement houses is underway. Bulk earthworks will commence once the first phase of resettlement is complete.
Power
A 47km grid connection to the project site is under construction, with the first of two substations well advanced and all new transmission towers delivered.
Access roads
Two new roads connecting the bitumen highway to the project site are under construction, to enable heavy equipment mobilisation.
Our partnership with the Ethiopian Government
KEFI’s Ethiopian operations are structured through Tulu Kapi Gold Mines Share Company (TKGM), a jointly-owned project company with the Ethiopian Government. The Tulu Kapi Mining Agreement, formalised in April 2015, includes a 20-year Mining Licence, a 5% Government free-carried interest, and full permits for development and operation.
Community and environmental commitments are set out in the project’s Environmental and Social Impact Assessment (most recently updated in 2023) and Resettlement Action Plan, both aligned with International Finance Corporation (World Bank) Performance Standards and Equator Principles.
20-year
Mining Licence
5%
Government free-carried interest
Resources & Reserves
KEFI acquired the Tulu Kapi Gold Project from Nyota Minerals Limited in 2014, and has since carried out a series of technical initiatives to bring the project to the financing and development stage, refining the Mineral Resources, Ore Reserves and mining method along the way. Click to read a summary of the technical initiatives undertaken since 2014.
Tulu Kapi’s Ore Reserve estimate totals 15.4 million tonnes at 2.12g/t gold, containing 1.05 million ounces (all in the Probable category).
| Cut-off (g/t Au) | Tonnes (millions) | Gold (g/t) | Contained Gold (million ounces) | |
|---|---|---|---|---|
| High grade | 0.90 | 12.0 | 2.52 | 0.98 |
| Low grade | 0.50–0.90 | 3.3 | 0.73 | 0.08 |
| Total | 15.4 | 2.12 | 1.05 |
Further information on this Ore Reserve is available in the 22 April 2015 announcement: Independently Verified Ore Reserve Reporting on Tulu Kapi Gold Deposit in Ethiopia.
Tulu Kapi’s Mineral Resource is estimated to total 20.2 million tonnes at 2.65g/t gold, containing 1.72 million ounces.
| Resource Category | Area | Tonnes (millions) | Gold (g/t) | Contained Gold (million ounces) |
|---|---|---|---|---|
| Indicated | Above 1,400m RL | 17.7 | 2.49 | 1.42 |
| Inferred | Above 1,400m RL | 1.3 | 2.05 | 0.08 |
| Sub-total | 19.0 | 2.46 | 1.50 | |
| Indicated | Below 1,400m RL | 1.1 | 5.63 | 0.20 |
| Inferred | Below 1,400m RL | 0.1 | 6.25 | 0.02 |
| Sub-total | 1.2 | 5.69 | 0.22 | |
| Indicated | Overall | 18.8 | 2.67 | 1.62 |
| Inferred | Overall | 1.4 | 2.40 | 0.10 |
| Total | 20.2 | 2.65 | 1.72 |
Mineral Resources are inclusive of Ore Reserves. Resources were estimated using cut-off grades of 0.45g/t gold above 1,400m RL and 2.50g/t gold below 1,400m RL. The Mineral Resources were split above and below the 1,400m RL to reasonably reflect the portions of the resource that may be mined via open pit and underground mining methods.
Further information on this Mineral Resource is available in the 4 February 2015 announcement: Independently Verified JORC Compliant Indicated Resource Reporting on Tulu Kapi Gold Deposit in Ethiopia.
The Tulu Kapi Definitive Feasibility Study
The Tulu Kapi 2015 Definitive Feasibility Study (“2015 DFS”) evaluated a conventional open-pit mining operation with a 1.2Mtpa carbon-in-leach (“CIL”) processing plant. The full study is available here.
From DFS to FEED
Following the positive 2015 DFS and the engagement of Lycopodium Minerals Pty Ltd (“Lycopodium”) as the engineering, procurement and construction contractor for the processing plant, Lycopodium completed a Front-End Engineering Design Study (“FEED Study”) in 2016, covering the design and construction of an integrated 1.5Mtpa ore processing facility for Tulu Kapi.
Lycopodium then prepared the 2017 DFS Update, incorporating due diligence and refinements made since the 2015 DFS. The full report is available here.
Ongoing optimisation
KEFI has continued to engage with key stakeholders in Tulu Kapi to optimise project development plans. While Mineral Resources, Ore Reserves and the mine plan remain essentially unchanged, the planned processing plant was expanded to a nameplate of 1.9-2.1Mtpa, to increase early cash flows by reducing stockpiles.
Since 2017, the DFS has been reviewed in consultation with technical experts and refined with detailed operational optimisation and updated contract pricing, terms and conditions. This work is summarised in the Tulu Kapi Project Overview (March 2025).
The implementation plan is based on a base schedule of 24 months from full closing of project finance to first gold pour, with incentive arrangements in place to encourage a faster start-up.
Further upside
KEFI also targets further increases to Tulu Kapi’s gold production through the addition of an underground mine operating concurrently with the open pit.