KEFI Gold and Copper plc has announced that development activities at its flagship Tulu Kapi Gold Project in Ethiopia are progressing according to schedule, with community resettlement, equipment procurement, and contractor mobilisation moving forward ahead of planned mine construction.

The London-listed gold and copper exploration company said the project remains on track to begin commissioning in late 2027, with full production expected by mid-2028.

Tulu Kapi, located in Ethiopia’s Oromia Regional State, is expected to become one of the country’s largest modern gold mining operations and represents a significant milestone in Ethiopia’s efforts to expand its mining sector and attract international investment.

Resettlement Progress Nears Completion

KEFI reported substantial progress on the first phase of the Resettlement Action Plan (RAP), which is required to clear areas for early infrastructure development.

According to the company, 100% of compensation agreements with affected landholders have now been completed, while around 90% of compensation payments have been made.

The first phase covers areas required for the airstrip, processing plant site, electrical substation, and construction camp. Preparation for the second phase, which includes areas required for pre-production drilling, open pit mining, and processing operations, has also started.

The company said replacement housing construction is underway, with temporary accommodation arranged where necessary.

Construction Activities Begin on Site

KEFI said several contractors are now mobilising personnel, subcontractors, and operational systems at Tulu Kapi.

Key project partners including Lycopodium, Ethiopian Electric Power (EEP), Ethiopian Roads Administration (ERA), and BCM have started preparations for construction activities.

Physical progress already completed includes the construction of replacement houses, installation of an electrical substation, and development of a new access road connecting the site to the main bitumen highway.

Equipment Procurement Passes 50%

The company also confirmed that more than half of major processing plant equipment has either been ordered or is ready for ordering under the project’s financing schedule.

The equipment includes critical mining and processing components such as the semi-autogenous grinding (SAG) mill, crusher systems, gold recovery equipment, water treatment facilities, and processing plant infrastructure.

KEFI said procurement activities remain aligned with the project timeline.

Debt Financing Expected in Q4 2026

The company stated that project debt drawdown remains targeted for the fourth quarter of 2026, following the completion of financing arrangements for the open pit mine and processing plant.

KEFI said it remains financially positioned following an equity capital raise completed in the first half of 2026.

The company’s Executive Chairman Harry Anagnostaras-Adams said the focus has now shifted toward project execution and completing debt drawdown processes.

“Progress across community resettlement, plant procurement and construction subcontractor tendering is in line with schedule,” he said.

Community Development Initiatives Launched

Beyond construction activities, KEFI said the Tulu Kapi Charitable Endowment has launched community initiatives aimed at supporting long-term local development.

The initiatives include plant nurseries to support environmental rehabilitation programmes and agricultural projects designed to create sustainable local enterprises around the mining operation.

Exploration Activities Resume in Ethiopia

Alongside Tulu Kapi development, KEFI has reassembled its exploration team to identify additional opportunities in Ethiopia and the wider Arabian-Nubian Shield region.

The company said the team, led by Head of Exploration Jeff Rayner, is evaluating opportunities near Tulu Kapi as well as other underexplored areas with high geological potential.

KEFI operates across Ethiopia and Saudi Arabia, but said its immediate priority remains delivering the Tulu Kapi project while building a pipeline of future mining opportunities.

If completed as planned, Tulu Kapi would mark Ethiopia’s transition toward a new generation of internationally financed industrial gold mining projects, potentially strengthening the country’s role in the regional mining sector.