KEFI Gold and Copper has resumed development activities at its flagship Tulu Kapi Gold Project in Ethiopia following a temporary suspension triggered by a fatal incident in September 2026.

The company said development was halted after the incident, which it called the “Genji Incident,” began on September 4 and was resolved on September 10 following engagement with local community leaders.

According to KEFI, the incident resulted in the first fatality involving its personnel during the company’s 12 years of involvement in the project.

During the suspension, KEFI’s senior management held consultations with community representatives, federal and Oromia regional government officials, security agencies and other stakeholders. Discussions focused on community welfare, employment, security and workplace safety.

“We are enjoying huge support from all stakeholders and are now restarting development with a phased and measured approach in which we reinforce the emphasis on safety and community benefits,” said Harry Anagnostaras-Adams, KEFI’s executive chairman.

The company said the restart would begin with reconnecting the project site to the regional electricity grid and remobilizing civil engineering teams to construct essential access roads.

Subsequent phases will include resettlement arrangements, including replacement housing and land for communities within the mining licence area, as well as security infrastructure upgrades, major earthworks for the processing plant and permanent staff accommodation.

KEFI expects the project to directly employ approximately 1,000 people from local communities once the mine reaches active production. The company also anticipates opportunities for local businesses and improvements to infrastructure, including roads, electricity connections, schools and healthcare facilities.

International specialists and contractors involved in the project will prioritize local businesses with established operational experience in Oromia, KEFI said.

The resumption follows a mining services agreement signed with BCM Group in June 2026, valued at more than $400 million, to support operations at Tulu Kapi.

KEFI added that international lenders remained committed to the project as discussions continued on revised development timelines and financing arrangements.

The Tulu Kapi project is one of Ethiopia’s major gold development projects, with its progress closely tied to the country’s efforts to expand mining investment and increase the contribution of the mining sector to the economy.