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September 7, 2026
KEFI Gold and Copper has suspended development activities at its Tulu Kapi Gold Project in Ethiopia after a security incident on September 4, 2026, left several people dead, including a company employee.
The company disclosed the incident in a regulatory announcement filed with the London Stock Exchange, saying it involved security personnel and members of the local community.
KEFI said it was deeply saddened by the loss of life and extended its condolences to those affected. The company said it could not provide further details because of the sensitive and ongoing nature of the situation.
Development work at Tulu Kapi has been suspended while KEFI engages with community representatives, Ethiopian government authorities and security stakeholders to determine the conditions required for work to resume safely.
The company said the governments of Ethiopia and the Oromia Region remain committed partners in the project and are working with KEFI on both the immediate response and the project’s longer-term future.
Tulu Kapi Project Had Been on Schedule
Before the incident, development of the Tulu Kapi project had remained on schedule since work began in March 2026, with first gold production targeted for mid-2028.
According to KEFI, work underway before the suspension included construction of a new access road expected to be completed in December 2026 and development of an electricity connection planned for completion before the end of 2027.
The company had also placed orders for plant and equipment scheduled for delivery throughout 2027, while community resettlement and contractor arrangements were being implemented in phases.
KEFI said its resettlement and compensation programme is being carried out in accordance with International Finance Corporation Performance Standards. Project-affected people are receiving compensation, replacement housing and land, as well as livelihood restoration support, according to the company.
Financing Drawdowns Put on Hold
KEFI said development activities will not restart until measures are in place to provide a safe and secure environment for employees and surrounding communities.
During the suspension, the company said it will carefully manage expenditure and defer further drawdown or deployment of project financing until the situation has been fully assessed.
KEFI said it has sufficient capital reserves and committed standby facilities to meet its requirements during the suspension period.
The company reiterated its commitment to the Tulu Kapi project but said it is too early to determine whether the suspension will affect the project’s development schedule or its mid-2028 production target.
KEFI said further updates will be provided as the situation develops.
