Lycopodium Limited has landed a major A$118 million contract to engineer and supply the Tulu Kapi Gold Project in Ethiopia, marking a significant step toward full gold production by mid-2028.
- Awarded A$118 million ESLH contract for Tulu Kapi Gold Project
- Contract covers engineering, procurement, and supply for 2 Mtpa gold plant
- Initial A$30.1 million notice to proceed already issued
- Full contract execution pending final documentation closure
- Project aims for mid-2028 gold production start
Lycopodium’s Strategic Win in Ethiopia
Lycopodium Limited, a global leader in engineering and project management, has secured a substantial contract valued at approximately A$118 million to support the development of the Tulu Kapi Gold Project in Ethiopia. This contract, awarded by KEFI Gold and Copper, encompasses engineering, procurement, project services, and labour hire for the construction of a 2 million tonnes per annum (Mtpa) greenfield gold processing plant.
The Tulu Kapi project, located in the Oromia Region roughly 360 kilometres west of Addis Ababa, represents one of Ethiopia’s pioneering modern industrial-scale gold mines. Lycopodium’s involvement with the project is not new; the company previously delivered the original feasibility study and a subsequent update in 2024, positioning it as a trusted partner in the mine’s development.
Contract Details and Project Outlook
The awarded Engineering, Supply and Labour Hire (ESLH) contract covers a comprehensive scope, including the full suite of engineering design, procurement of equipment and materials, project management, and labour hire services. The initial notice to proceed, valued at A$30.1 million, has already been issued, allowing Lycopodium to commence work ahead of the full contract execution, which is expected imminently following the finalisation of documentation with KEFI’s project syndicate members.
The Tulu Kapi mine will initially operate as an open-pit mine, with plans to introduce underground mining operations as soon as feasible. The project aims to reach full gold production by mid-2028, a timeline that underscores the urgency and scale of Lycopodium’s delivery responsibilities.
Implications for Lycopodium and the Region
For Lycopodium, this contract not only reinforces its position as a leading engineering and project management firm in the mining sector but also expands its footprint in Africa, a region with growing mining activity. Managing Director and CEO Peter De Leo highlighted the significance of Tulu Kapi as a pivotal growth driver for Ethiopia, reflecting the broader economic and industrial development potential tied to the project.
As one of Ethiopia’s first modern gold mines, Tulu Kapi is poised to contribute meaningfully to the country’s mining sector and economic diversification efforts. Lycopodium’s role in delivering this project will be closely watched by investors and industry observers, given the scale and strategic importance of the mine.
Bottom Line?
Lycopodium’s successful contract award sets the stage for a transformative mining project in Ethiopia, with eyes now on timely delivery and production milestones.
Questions in the middle?
- How will Lycopodium manage potential risks related to project execution in Ethiopia?
- What are the financial implications for Lycopodium’s upcoming earnings reports?
- Could underground mining expansion accelerate beyond current plans?