KEY POINTS
- Kefi has suspended development at its Tulu Kapi gold project in Ethiopia after a September 4 security incident that caused multiple deaths, including one company employee.
- The company is working with government, security authorities and community representatives to establish conditions for a safe resumption of activities.
- Tulu Kapi remains targeted for first gold production in mid-2028, but Kefi says it is too early to determine whether the suspension will delay the schedule.
AIM-listed Kefi Gold and Copper has suspended development activities at its Tulu Kapi gold project in Ethiopia following a serious security incident that resulted in multiple fatalities.
The incident occurred on September 4 and involved security personnel and members of the surrounding community. Kefi confirmed that one of its employees was among those killed.
The company said the suspension is immediate and will remain in place while it works with community representatives, Ethiopian government authorities and security stakeholders to establish the conditions required for a safe and orderly return to operations.
Kefi said it will not restart development activities until appropriate security measures have been established to protect its employees, contractors, community members and other stakeholders connected to the project.
The company has declined to release further details about the incident, citing the sensitive and ongoing nature of the situation.
Kefi said withholding additional operational and security information is intended to protect those affected and avoid compromising ongoing efforts to address the situation.
The company expressed its condolences to the families and communities affected by the loss of life.
Government and Community Engagement Underway
Kefi said the Ethiopian government and the Oromia regional government remain committed partners in the Tulu Kapi project.
The company is working with both authorities on the immediate response to the incident and on measures aimed at securing the project’s longer-term future.
The engagement will also focus on creating conditions that protect the local community and other stakeholders as development activities eventually resume.
Before the security incident, development at Tulu Kapi was progressing according to schedule.
Project development officially started in March, with Kefi targeting the commencement of gold production in mid-2028.
The company said the project remained on schedule before the suspension, although it is currently too early to determine whether the security disruption will affect the planned development timeline.
Kefi continues to describe Tulu Kapi as a long-term development priority and said it remains committed to advancing the project.
The suspension will also affect the immediate deployment of project financing.
Kefi said it will manage expenditure carefully during the suspension period and defer further drawdowns or deployment of project financing until the circumstances surrounding the incident have been fully assessed.
Despite the temporary halt, the company said it has sufficient capital reserves and committed standby financing facilities to meet its expected requirements during the suspension.
This is intended to provide Kefi with financial flexibility while it works with authorities and other stakeholders to determine when development can safely resume. Kefi said it is too early to assess the potential effect of the suspension on the Tulu Kapi development schedule.
The company will first focus on understanding the security situation and putting appropriate safeguards in place before making decisions about restarting work.
Any potential impact on the targeted mid-2028 production date will therefore depend largely on the duration of the suspension and the measures ultimately agreed with government, security authorities and local communities.
