By Aaron Maasho
ADDIS ABABA, April 13 (Reuters) - London-listed miner KEFIMinerals signed a deal with the Ethiopian government onMonday to mine for gold and silver in the west of the Horn ofAfrica country.
KEFI took over exploration rights for the Tulu Kapi projectin the Oromia region from Australia's Nyota Minerals Ltd.
Under the 20-year agreement, KEFI plans to mine for bothgold and silver over an area of 7 square kilometres. The companysaid it aimed to produce 28.6 tonnes of gold over 11 years.
"Production will be in 2017, and 2016 will be the year ofconstruction," KEFI Chairman Harry Anagnostaras-Adams said atthe signing ceremony in the Ethiopian capital.
Gold is Ethiopia's second-largest export revenue generatorafter coffee and earned an average of $450 million to $500million a year for the past five years.
"We hope this mining of gold and silver will contribute toour national economy, especially in foreign currency," MinesMinister Tolesa Shagi said, adding he expected the firm todeliver revenues of $1.6 billion to the state over 11 years.
Tulu Kapi will be Ethiopia's second mine after Lege Dembi,which is in the Adola gold belt about 300 km (186 miles)southeast of Addis Ababa. The mine is run by Midroc, a firmowned by Saudi-Ethiopia businessman Mohammed al-Amoudi. (Editing by Edmund Blair and Susan Thomas)
Kefi Gold & Copper (KEFI)
