Market Fluctuation Delays Gold Production in Ethiopia

Global gold market fluctuations have prompted an Australian company to delay gold production in western Ethiopia, the Ethiopian Ministry of Mines said Saturday.

“Gold production by Nyota Minerals has been delayed due to the unstable global gold market,” the ministry’s public relation deputy head Chala Bonsa said. “But it is expected to commence production,” he added.

In 2013, the Australian company found a new gold deposit in western Ethiopia, some 500km from the capital.

Nyota recently reported that “it has entered into a conditional agreement to sell its remaining 25% stake in the Tulu Kapi Gold Project in Ethiopia to KEFI Minerals.”

Asked if the ministry is aware of the deal, Chala said “the company has informed the ministry that it has changed its name from Nyota Minerals to KEFI Minerals three months ago.”

“Our purpose is to monitor that the company fulfills obligations stated in the agreement that it has signed with the ministry to explore gold,” he said.

He, however, said that the Australian company is expected to enter production within the remaining months of the current year.

According to the Trade Ministry, Ethiopia eyed to $774.5 million over the past ten months from gold exports. It only earned $369.31million during the reported period.

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