Kefi Minerals (LON:KEFI) told investors it has selected African Mining Services, a subsidiary of Ausdrill Limited, as its preferred mining contractor for the Tulu Kapi project in Ethiopia.
The arrangement will cover certain pre-mining earthworks as well as the life-of-mine open pit operation, though Kefi will remain directly responsible for key input costs such as explosives and fuel.
Kefi and AMS will now work to jointly optimise a detailed operating plan, and will prepare detailed contract documentation.
Wayne Nicoletto, Kefi chief operating officer, described Ausdrill/AMS as an ‘industry stalwart’ and said the appointment was a “profoundly important” step towards setting up Tulu Kapi for development and long term operation.
Meanwhile, executive chairman Harry Anagnostaras-Adams says Kefi is looking forward to starting work on the ground.
"KEFI was privileged to have received bids from many prominent industry specialists, all of whom invested much effort into their proposals,” he said.
“We are pleased to have joined forces with Ausdrill and its long-standing African subsidiary, AMS, which have a record second to none.”
Kefi also confirmed financial projections for the mine such as all-in-sustaining costs of US$760 per ounce, a US$120mln peak funding requirement – with US$100mln to be sourced from debt and gold streaming, along with US$20mln of project-level equity.
It is planned that Tulu Kapi will produce 100,000 ounces per year.