Modern Mining November 2015

MINING News

‘Preferred Contractors’ appointed for Ethiopian gold project

estimate in the Definitive Feasibility Study (DFS) of a total cost of US$61 million for a 1,2 Mt/a plant. Latest estimates for annual gold pro­ duction at Tulu Kapi are approximately 105 000 oz/a for a 10-year period at an all-in sustaining cost (including operating, sustaining capital and closure) of around US$760/oz (excluding initial investment). Capex is estimated at US$120 million. Tulu Kapi’s ore reserve totals 15,4 Mt at 2,12 g/t gold, containing 1,05 million ounces. 

AIM-listed KEFI Minerals has appointed African Mining Services (AMS), a wholly- owned subsidiary of Ausdrill Limited, as the ‘Preferred Contractor’ for mine estab­ lishment and operation for its Tulu Kapi gold project in Western Ethiopia. The scope covers certain pre-mining earthworks as well as the life-of-open-pit mining operation. The contractual pay­ ment rate is to be based on cubic metres delivered with direct purchases by KEFI of certain key input costs such as explosives and fuel. The next step is for KEFI and AMS to jointly optimise the detailed operating plan for the benefit of the project and to prepare matching detailed contractual documentation. KEFI has also announced the appoint­ ment of Sedgman Limited as ‘Preferred Contractor’ for plant construction and start-up at Tulu Kapi. The scope of work under the pro­ posed contractual arrangements will

cover: detailed equipment specifica­ tion and procurement – with a Front End Engineering Design (FEED) stage to commence this quarter; construction to occur under a fixed-price lump sum contract (Engineering, Procurement and Construction); and start-up management. The estimated cost is approximately US$63 million for a 1,5-1,7 Mt/a facility depending on ore-type from year to year to be refined during the FEED stage. This compares favourably with the previous

The Tulu Kapi project is located 360 kmwest of Addis Ababa in a surprisingly lush landscape. The project area, seen here, has typical greenstone-type geology (photo: KEFI Minerals).

November 2015  MODERN MINING  13