KEFI Gold and Copper (AIM: KEFI) has provided a further update on the serious security incident at its Tulu Kapi Gold Project in Ethiopia, confirming that all employees affected have now been accounted for and that there have been no further fatalities or injuries.
The company said the employee who lost his life in the incident has now been laid to rest, with KEFI reiterating its condolences to his family and others affected.
Since its previous update on 7 September, senior management and the local project team have held detailed discussions with community representatives, Ethiopian and Oromia government officials and other stakeholders.
KEFI said those discussions had reiterated the strategic importance of Tulu Kapi and confirmed broad support for the company’s cautious approach to determining when development activities can safely resume.
The company remains in close contact with its principal contractors, lenders and local investors, all of whom are said to remain supportive of the project.
Lead engineering and construction contractor Lycopodium currently has its project oversight team in Ethiopia, working with KEFI and local contractors while the situation is assessed and development plans are reviewed.
KEFI also reported renewed and increased interest from Ethiopian institutions and high-net-worth family offices in subscribing for redeemable preference shares at subsidiary level.
The company said this potential funding would be non-dilutive to KEFI shareholders and could provide additional financial flexibility and reduce funding risk if required.
However, KEFI reiterated that development activities at Tulu Kapi will not resume until a full investigation has been completed and appropriate measures are in place to provide a safe and secure operating environment for employees and surrounding communities.
Executive Chairman Harry Anagnostaras-Adams said management had travelled to Ethiopia immediately following the incident to work directly with the local team, government and community representatives.
He said the Ethiopian Government remained committed to helping the project overcome the setback, while KEFI intends to accelerate the “Ethiopianisation” of Tulu Kapi, including greater local participation, closer partnerships between international contractors and Ethiopian companies, and increased local involvement in the project’s funding structure.
The latest update provides some reassurance following the suspension of development activities earlier this week, although the timing of any restart remains dependent on the outcome of the investigation and the establishment of enhanced security arrangements.
