Aim-listed Kefi Gold and Copper reports that its Tulu Kapi gold project, in Ethiopia, experienced a serious security incident on September 4, resulting in multiple fatalities involving security personnel and community members, including one company employee.

As a result, Kefi has immediately suspended project development activities while it engages with relevant community representatives, Ethiopian government authorities and security stakeholders to determine the appropriate conditions for a safe and orderly resumption of activities.

The company will not resume development activities until appropriate measures have been established to provide a safe and secure operating environment for its personnel and the surrounding communities, it stresses. 

Owing to the sensitive and ongoing nature of the situation, Kefi says it is unable to provide further operational or security details at this time, with this approach intended to protect the safety and interests of company personnel, community members and others affected by the incident.

“The company is deeply saddened by the loss of life and extends its sincere condolences to all those affected,” Kefi says in a statement.

“The governments of Ethiopia and of the Oromia region are committed partners in Tulu Kapi, and we are working together on both the immediate response and on securing the project’s long-term future in a manner which protects the community and all stakeholders,” it adds.

Kefi highlights that it remains committed to the project and its long-term development objectives. Project development started in March and, prior to the incident, remained on schedule and focused on starting gold production in mid-2028.

During the suspension period, Kefi will manage its expenditure and will defer further drawdown or deployment of project financing until the circumstances have been fully assessed and appropriate measures are in place.

The company assures that is has sufficient capital reserves and committed standby facilities to support its anticipated requirements during the period of suspension.

It is too early to assess what impact, if any, the suspension may have on the project development timetable, Kefi points out.