Kefi Gold and Copper is restarting its Tulu Kapi gold project in Ethiopia in phases. Work stopped on September 7 after a fatal safety incident, and Kefi says it has agreed a way forward with local communities and government.
At a glance
- Work restarts first on power connection infrastructure and new access roads.
- Kefi says it was the first time its personnel had been injured, let alone killed, in about 12 years of running the project.
- Lenders are still backing the project while the development schedule and loan drawdowns are updated.
Background
Tulu Kapi, in Ethiopia's Oromia region, is Kefi's main gold project and is still being developed. Before building the mine, the company has to resettle community members living on the mining licence area and build roads, power links and housing.
What happened
Aim-listed Kefi Gold and Copper said it is restarting development at Tulu Kapi after lifting a suspension imposed on September 7, following a serious safety incident on September 4. Mining.com.au and Mining Weekly both reported that the incident was fatal.
Kefi said it was the first time its personnel had suffered injury, let alone a fatality, in about 12 years of controlling the project.
How the restart will work
Since the incident, Kefi's management has held consultations with community representatives, Ethiopian and Oromia government leaders and other stakeholders. The talks focused on the local community, giving more of the work to local firms, and security arrangements.
Construction is restarting on electricity connection infrastructure and new access roads. Next comes replacement housing and land for community members resettling from the mining licence area. Only then will initial construction start on the licence area itself, including security infrastructure, bulk earthworks and permanent workforce housing.
What it means
Executive chairperson Harry Anagnostaras-Adams said Kefi is "enjoying huge support from all stakeholders". He said the restart follows "a phased and measured approach" with more emphasis on safety and community benefits.
Kefi said its lenders continue to support the project during talks on updating the development sequence and drawdown of funds. It did not give a new date for first gold.
Our read
Outlook: neutral. A development project restarting in Ethiopia has no effect on gold supply or prices today.
What to watch
- A revised development schedule and date for first gold.
- Progress on resettlement of community members from the licence area.
- Updated drawdown terms from the project's lenders.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-24.
Detailed analysis
Timeline
- 2026-09-04: A fatal safety incident occurs at Tulu Kapi.
- 2026-09-07: Kefi suspends development work.
- 2026-10-12: Kefi announces a phased restart.
Geopolitical Risks
Security arrangements and community relations were central to the restart talks.
Mining Production
Tulu Kapi is still in development, so the restart affects future rather than current gold output.
What could lift prices
- Lenders continue to back the project.
- Kefi says it has broad support from communities and government.
What could weigh on prices
- No new date has been given for first gold.
- The development sequence and funding drawdowns are being reworked.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Ethiopia | Medium | Its largest gold development project is restarting. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Neutral | A development project resumes after a safety pause. |
Who gains, who loses
- Local firms near Tulu Kapi: Kefi is prioritising local companies for field work.
Other ways this could play out
- If the phased restart goes smoothly, construction on the licence area could begin after resettlement.
- If security or community issues return, the project could face further delays.
Price risks
- Gold prices affect the project's economics and financing.
- Further safety or security incidents could halt work again.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
