1 billion birr slated for resettlement at Tulu Kapi in Ethiopia
Over one billion birr is set to be issued for the resettlement of close to 360 households from the project site in western Oromia.
The Tulu Kapi Gold Mines Share Company (TKGM) made the announcement and aid the funds will be used in building new homes for the households, direct cash transfers to compensate for the loss of harvest and community support.
Relocating the households and constructing the 15 billion birr project will be finalized in the next two years, after which gold production will commence, Harry Anagnostaras Adams, chairman of KEFI Gold and Copper said. KEFI’s management reached a consensus after a three-day workshop with community representatives, the Ministry of Finance, Oromia regional government president’s office, west Wellega zone administration, zonal land administration office, rehabilitation and restoration agencies, Ethiopian Roads Authority (ERA), Ethiopian Electric Power (EEP) administrators, and security officials of Genji, Gimbi, and Lalo Assabi woredas.
Phase one of the project
After the discussions over the week, the stakeholders agreed to the implementation of the first phase of the community resettlement, increasing employment opportunities for local personnel for the site preparations, and up-scaling the security protection deployment. They reached an agreement to launch the project in the next few months.
Once the community is relocated, KEFI will secure the title deed to the land, and proceed to the engineering works and construction of the gold mining and refinery plant. The plant will employ around 1,000 people in the process.
“This is the first higher industrial level gold mining investment in Ethiopia in decades. There have been many procedures and deliberations with the government to allow certain issues. We need two years for the resettlement and construction. This is a very large project, costing over USD 300 million. The construction itself is a 15 billion birr project,” said Anagnostaras said.
The Ethiopian government approved the Tulu Kapi mining agreement for KEFI in April 2015. The terms include a 20-year mining license, a five percent government free-carried interest, and all necessary permits for the mines development and operation. Tulu Kapi has an estimated gold ore reserve of 1.05 million ounces and mineral resources totaling 1.72 ounces of gold. However, the project has been delayed due to two major obstacles.
