Kefi Q+A12 Apr 2023 09:11
Various questions regarding Ethiopia
Q: Now that KEFI is preparing to launch full development at Tulu Kapi, could you please summarise the experience of the KEFI team in developing mining and ore processing facilities?
A: The senior executive committee includes development specialist (the Head of Project Development Norman Green who founded African development contractor Green Team International) , Eddy Solbrandt (the Head of Organizational and Systems development who founded international consultancy GPR Dehler) , Rob Williams (Head of Corporate Development who has carried out development and operational roles in projects for the world’s largest miner BHP and companies led by the Chairman). And the Chairman who has, as Managing Director, guided the successful development of Australian projects in gold, zircon, alumina, magnesia and gas.
Q: Can it really be that hard and take so long to close financing, now that the government people are collaborating properly?
A: We obviously did not predict the range of challenges we would confront when we entered the country in 2014, before the much publicized conflicts had emerged. And without wanting to be seen to deflect the question, one should better ask why this is the first large-scale mining development in Ethiopia for over 30 years - in a highly prospective geological terrain.
Q. Why is it that KEFI is the only company at this stage? Where are all the other companies that have explored in Ethiopia?
A. Many regulatory policies have to be revised to accommodate our proposal, from allowing market-based interest rates to relieving the capital controls to allow debt and equity capital to receive interest and dividends without restrictions. They are just two of many regulatory aspects that have taken many years to address. And they are all critical to protect a c. $400 million syndicate of banks, contractors and investors - especially public shareholders who do not directly sit at the negotiating table.
Lastly, security needs to follow a belts and braces approach before deploying hundreds of people and hundreds of millions of dollars in a country which has recently experienced security issues.
Fortunately, it is obviously coming together at last. and we assure shareholders that discipline is being maintained on the sequence of implementation, to protect all stakeholders.
Q: Can you comment on some bulletin board participants claiming you are misleading shareholders?
A: Anonymous comments are beyond the scope of legitimate attention for the company. One should remember that we have some 5,000 shareholders and few people post on the chat rooms, for reasons that are not always evident or transparent. It is indeed not easy to comment on this without being targeted by more anonymous chatter.
Posted 12 April 2023
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