KEFI Gold and Copper has signed a mining services agreement with BCM Group for the Tulu Kapi Gold Project in Ethiopia, covering more than US$400 million of work over the mine’s initial nine-year life.
The contract gives BCM responsibility for supplying the mining fleet, training and managing locally recruited operators, and carrying out full mining operations at Tulu Kapi. The work will be performed under the supervision of KEFI’s Ethiopian subsidiary, Tulu Kapi Gold Mines Share Company.
The agreement is a major step in preparing the project for production because it confirms who will carry out the core mining work. For a mine moving from development into execution, the appointment of the mining contractor is one of the most important practical decisions. It affects timing, operating readiness, workforce planning and the ability to move from construction activity to steady production.
BCM is already working at the site, providing bulk earthworks and drilling services. That existing involvement should help the transition into the larger mining services role, as the contractor is already familiar with the project location and early-stage site requirements. The new agreement also allows BCM to begin ordering and deploying the Caterpillar mining fleet needed for operations.
Tulu Kapi is planned as a significant new gold mine in Ethiopia. KEFI expects production to start next year. The latest feasibility study for the project estimates average annual gold production of 166,000 ounces during the first seven years, with output expected to peak at 227,000 ounces in year four.
KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
