KEFI Gold & Copper (KEFI ) has signed a mining services agreement with BCM Group for the provision of services valued at more than US$400 million over the initial nine-year life of the company’s Tulu Kapi gold mine in Ethiopia.
BCM will provide a comprehensive suite of mining services, including the provision of the mining fleet, training and management of locally recruited operators, and full mining operations under the supervision of KEFI's Ethiopian subsidiary, Tulu Kapi Gold Mines Share Company (TKGM).
The award of this long-term contract follows BCM's recent mobilisation to Ethiopia, where it is already providing bulk earthworks and drilling services for TKGM.
The agreement also enables BCM to proceed with the ordering and deployment of the Caterpillar mining fleet required for full-scale mining operations at Tulu Kapi.
The contract signing took place in London at the inaugural Ethio-British Investment Forum, in the presence of H.E. Gedion Timothewos Hessebon, Minister of Foreign Affairs of the Federal Democratic Republic of Ethiopia.
"Today's Ethio-British Investment Forum marks an important milestone in the development of Ethiopia's private sector and international investment profile,” said Harry Anagnostaras-Adams, executive chairman of KEFI Gold and Copper.
“Mining has already emerged as Ethiopia's leading export-generating sector, yet the industry is only beginning to unlock its vast potential. The signing of this major mining services contract with BCM represents another significant step towards the full development and launch of operations at Tulu Kapi. We are delighted to be working with an experienced contractor that shares our pioneering approach and long-term commitment to Ethiopia."
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KEFI continues to power ahead with development work at Tulu Kapi, even as the gold price stabilises in the wake of the Iran ceasefire. The margins on offer from Tulu Kapi remain compelling, and BCM is a company with extensive experience in making mines like this work. Meanwhile, exploration in the Tulu Kapi surrounds is ramping up, amid speculation that the new mine might be just the first of many in an emerging district play.