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November 2015
MODERN MINING
13
MINING News
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
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.
‘Preferred Contractors’ appointed for Ethiopian gold project
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).