The Oromo Liberation Army (OLA) in Ethiopia has issued a warning to both domestic and international companies involved in Oromia’s extractive industries, calling for direct local community involvement in mining projects.
The group pointed to the fatalities at the Tulu Kapi gold project as an example of what could transpire if companies fail to meet its stated conditions, reported the Addis Standard.
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In an urgent notice to businesses operating in the region, the OLA said operations must only proceed after “thorough and transparent deliberations” with local communities to develop mechanisms for their participation and benefit.
The statement said companies are required to implement verifiable environmental standards across all activities, declaring compliance “non-negotiable”.
The group warned that those failing to meet these requirements would “bear the full consequences”, specifically referencing “the fate of Tulu Kapi in western Oromia” as a case in point.
A security incident on 4 September at the Tulu Kapi gold project resulted in multiple deaths including security personnel, community members and a KEFI Gold and Copper employee.
The company subsequently suspended the Tulu Kapi gold project development.
In an update on 7 September, KEFI confirmed it is engaging with community representatives, Ethiopian Government authorities and security forces to assess conditions needed for a safe resumption. The company cited the ongoing sensitive nature of the situation and did not disclose further details.
KEFI has said it will adopt prudent expenditure measures during the project’s suspension and has put further disbursements of project financing on hold, pending a full review and the development of necessary safeguards.
Development of the gold project commenced in March 2026, with the aim of beginning gold production by mid-2028.
Work to date has included the construction of an access road, establishment of electricity connections, procurement of equipment and machinery, and phased resettlement of local communities.
The project, located in West Wollega Zone’s Ganji district and spanning approximately 8km², lies approximately 28km east of Ayra town.
KEFI acquired the Tulu Kapi licence in 2014 and secured project financing of $320m (€277.45m) in January 2024.
Exploration activities at the site began in May 2024 after board approval and cooperation with Ethiopian federal and Oromia regional authorities.
By August 2024, infrastructure development such as worker accommodation, water systems and an airstrip had reportedly reached 95% completion.
