Harry Adams (HA), executive chairman of Kefi Gold and Copper talks through the recent progress at its Tulu Kapi project in Ethiopia with Proactive’s Stephen Gunnion (SG).
SG: Let's dive into your update on the Tulu Kapi Gold Project, especially following your recent meetings with stakeholders at the Mining Indaba in Cape Town. How is the project progressing?
HA: It feels like we're over the hill and on the downhill run now. Despite potential slips, this phase seems easier compared to the challenges we've faced over the years, including war and pestilence. Everyone involved is eager to move forward.
SG: Could you elaborate on the finance plan for the project and its structure?
HA: The structure is typical of mining project finance, though tailored to fit Ethiopia's unique context. We've had to navigate new laws and persuade stakeholders due to the country's transition to democracy and internal conflicts.
Our finance plan includes contributions from development banks, local government, and investors, emphasizing the importance of local investment in overcoming challenges.
SG: This project marks a significant milestone as the first internationally financed bankable project for the private mining sector in Ethiopia. Could you comment on its importance?
HA: It's a monumental step for Ethiopia, showcasing the potential for private sector-led development. This project not only signals confidence in the country's mining sector but also plays a crucial role in its economic recovery, especially after the setbacks from civil conflict.
SG: With the aim to fully launch the project in the first half of this year, what preparations are being made to meet this target?
HA: Our focus is on ground-level engagement, ensuring safety and readiness, which involves extensive community interaction.
Additionally, we're handling legal preparations and coordinating with banks and investors to align for a smooth closing process.
A significant trigger was the formalisation of exchange control relief, marking a pivotal moment for us and future strategic mining projects in Ethiopia.