Kefi Gold and Copper (AIM:KEFI) said it is resuming development at the Tulu Kapi gold project in Ethiopia, lifting a suspension imposed on 7 September, following what the company referred to as "the Genji Incident".
Development will resume in phases, starting with electricity connection infrastructure and new access roads, followed by replacement housing and land for communities resettling from the mining licence area. That will clear the way for initial construction on the licence area itself, including security infrastructure, bulk earthworks for the processing plant and permanent workforce accommodation.
Kefi said its lenders have continued to support both the company and the project during discussions on updating the development sequencing and associated drawdown of funds, and that it has seen expressions of interest from Ethiopian investment and construction firms keen to deepen their involvement.
"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.
He said the project, once in production, would directly employ approximately 1,000 people from the local community, and that the company has already invested well over $150 million at Tulu Kapi.
The incident
The AIM-listed mine developer halted work after an incident on 4 September that saw multiple security personnel and community members killed, including one Kefi employee.
The company said it was the first time any of its personnel had been injured or killed in some 12 years of its control of the project, and that the incident was concluded on 10 September, largely through close collaboration with the local community.
Since then, senior management and the local team have held consultations with community representatives, Ethiopian and Oromia government leaders and other stakeholders, focused on community relations, localisation of operations and security arrangements.