Mining contract

UK-based KEFI Minerals has selected Sedgman as the preferred contractor for plant construction and start-up for its Tulu Kapi Gold project in Ethiopia.

Situated 28km east of Ayra-Gulliso town in the state of Oromia, the mine lies in the Tulu Kapi-Ankore license area and has a surface area of 8.44km².

Under the contract, the Australian company will provide services such as detailed equipment specification and procurement.

The plant will be built at a cost of $63m and has an estimated capacity of up to 1.7 million tonnes a year depending on ore-type from year to year.

The contract also included a fixed-price lump sum contract, with performance guarantees.

Based on the proposal from Sedgman, expected production at the project in the first five years has been increased to an average of 105,000oz a year.

KEFI said its peak funding requirement will be maintained at $120m.

"The plant will be built at a cost of $63m and has an estimated capacity of up to 1.7 million tonnes a year."

As part of the project’s next phase, KEFI plans to start the FEED stage of plant planning, involving detailed engineering and procurements during the quarter.

In addition, KEFI will appoint the contractor for mine establishment and operation, with plans to complete legal documentation for approval by all syndicate members, including the Ethiopian Government.

Next year, KEFI will initiate drill-out of potential satellite deposits to identify any opportunities to further production expansion.

Production is planned to be increased to 105,000oz a year from the initially anticipated 80,000oz.

KEFI Minerals COO Wayne Nicoletto said: "The intense competition during the contract tendering process, culminating in today’s appointment of Sedgman as preferred contactor for the plant, demonstrates the industry’s recognition of the potential of Tulu Kapi and of its successful overhaul by KEFI."

Image: Sedgman will provide services including detailed equipment specification and procurement for the mine project. Photo: courtesy of duron123/