As reported by Proactive Investors that Kefi Minerals (LON:KEFI) has appointed Sedgeman Ltd as its preferred plant and start - up contractor for the construction of the Tulu Kapi gold mine in Ethiopia. Tulu Kapi Gold Mine is situated 28km east of Ayra-Gulliso town in the state of Oromia, Ethiopia
Sedgeman is Australia-based and has strong track record in working on African projects. Sedgman is a leading provider of mineral processing and associated infrastructure solutions to the global resources industry.
Sedgeman It will now embark on a well-worked out programme that will include front end engineering, detailed equipment specification and procurement, and start-up management.
Construction will occur under a fixed price lump sum contract, and as it stands the estimated cost works out at around US$63mln for a 1.5-1.7mln tonnes per year operation depending on ore type from year to year.
That compares favourably to the parameters set by the definitive feasibility study that was released earlier this year, which worked on the presumption of a smaller plant with a .2mln tonne capacity that was likely to cost US$61mln.
Sedgeman’s proposals mean that planned production is boosted to an average of 105,000 ounces of gold over the first five years of production.
All of which means that Kefi’s peak funding requirement remains at the US$120mln level that has previously been announced.
The likely sources of finance remain a US$100mln combination of debt and gold streaming with a further US$20mln equity contribution likely to come from the government of Ethiopia.
