Tuesday, April 14, 2015

London miner KEFI signs gold, silver mine deal in Ethiopia

(Reuters) - London-listed miner KEFI Minerals (KEFI.L) signed a deal with the Ethiopian government on Monday to mine for gold and silver in the west of the Horn of Africa country. KEFI took over exploration rights for the Tulu Kapi project in the Oromia region from Australia's Nyota Minerals Ltd (NYO.AX).

Under the 20-year agreement, KEFI plans to mine for both gold and silver over an area of 7 square kilometres. The company said it aimed to produce 28.6 tonnes of gold over 11 years. "Production will be in 2017, and 2016 will be the year of construction," KEFI Chairman Harry Anagnostaras-Adams said at the signing ceremony in the Ethiopian capital.

Gold is Ethiopia's second-largest export revenue generator after coffee and earned an average of $450 million (306 million pounds) to $500 million a year for the past five years. Read more from Reuters »

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