KEFI Gold and Copper shares fell about 40% in London on Monday after the company suspended all development work at its Tulu Kapi gold project in western Ethiopia following a fatal security incident at the site.

The company said the incident happened on Friday, 4 September, and killed several people, including security personnel, members of the surrounding community and one KEFI employee. It gave no further detail, citing the sensitive and ongoing nature of the situation.

Work stopped immediately and will not restart until adequate security measures are in place, KEFI said. The company is in talks with community representatives, federal and Oromia authorities, and security stakeholders on the conditions for resuming. It is also deferring further drawdowns of project finance and says it has enough cash and standby facilities to cover the suspension period.

Tulu Kapi entered full development in March 2026 on a 27-month schedule targeting first gold in mid-2028, backed by a financing package of roughly $340 million that includes $240 million in bank debt guaranteed by KEFI and an equity stake held by the Ethiopian government in project company Tulu Kapi Gold Mines S.C. Access road construction, power connection works and plant equipment orders were under way before the incident.

KEFI said it is too early to say what the suspension means for the timetable.

The halt puts Ethiopia’s largest gold development and the government’s case that large-scale foreign mining investment can be delivered in Oromia, on hold indefinitely.