Addis Abeba — The Oromo Liberation Army (OLA) has warned foreign and domestic companies operating in Oromia's extractive sector that they must ensure local communities participate in and directly benefit from mining projects, while pointing to the recent deadly incident at the Tulu Kapi gold project as an example of the consequences of failing to meet its stated requirements.

Breaking news alerts In an "urgent notice of requirement" addressed to businesses operating in Oromia's extractive industry, the OLA said companies seeking to operate in the region must hold "thorough and transparent deliberations" with local communities on mechanisms for their direct participation and benefit.

The group said no extractive operation should proceed without such arrangements being established and agreed upon. It also demanded that companies implement and maintain verifiable environmental standards throughout their operations, describing compliance as "non-negotiable."

Discover moreEthiopian politics analysisEthiopian city guideWar & Conflict The OLA said companies failing to meet the requirements would "bear the full consequences," referring to "the fate of Tulu Kapi in western Oromia."

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The warning follows a deadly security incident at the Tulu Kapi gold project on 4 September, which prompted KEFI Gold and Copper to suspend development activities. The UK-listed company said multiple security personnel and community members were killed, including one company employee.

In an update issued on 7 September, KEFI said it was engaging with community representatives, Ethiopian government authorities and security stakeholders to establish conditions for a safe and orderly resumption. The company did not provide further details about the incident, citing its sensitive and ongoing nature.

Law and justice Addis Standard reported on 8 September 2026 that KEFI Gold and Copper had suspended development of the Tulu Kapi gold project following the deadly security incident on 4 September.

Discover moreAfricans & DiasporanewsElection coverage EthiopiaHoneyMaritime shipping newsGeographic ReferencePoliticalconstitutionalEthiopian news updatesSocial Issues & Advocacy The company said it would manage expenditure carefully during the suspension and defer further drawdown or deployment of project financing until the situation had been assessed and necessary measures established. KEFI said it had sufficient capital reserves and committed standby facilities to meet anticipated requirements during the suspension.

Development of Tulu Kapi began in March 2026 and had been progressing toward planned gold production in mid-2028. Work had included construction of an access road, electricity connection, equipment procurement and phased community resettlement.

The Tulu Kapi gold project, located in Ganji district of West Wollega Zone, was officially inaugurated on 18 February 2026 in a ceremony attended by Prime Minister Abiy Ahmed, Oromia Regional President Shimallis Abdisa, government officials and project representatives, as previously reported by Addis Standard.

Ethiopian election 2026 At the inauguration, Abiy described Tulu Kapi as an example of the responsible utilisation of Ethiopia's natural resources, highlighting its potential socio-economic benefits for surrounding communities through infrastructure development. The project is being developed through a public-private partnership and is led by KEFI Gold and Copper plc, which acquired the site in 2014.

Located about 28 kilometres east of Ayra town and covering roughly eight square kilometres, the project had undergone years of exploration and preparations before construction formally commenced. KEFI secured $320 million in project financing in January 2024, while exploration activities began in May that year following board approval and coordination with federal and Oromia authorities.

The company had also held consultations with local communities and government officials on resettlement, compensation and employment arrangements. By August 2024, infrastructure development at the site, including worker facilities, water supply systems and an airstrip, was reported to have reached 95% completion.

Following the February 2026 inauguration, KEFI said project development was progressing toward its target of commencing gold production in mid-2028. Prior to the security incident of 4 September, work had included construction of an access road, preparations for electricity connection, procurement of plant and equipment, and phased community resettlement.

Ethiopian news updates The Tulu Kapi project has been positioned as a major step in Ethiopia's efforts to expand modern gold mining and attract large-scale investment into the sector. Business Insider Africa reported that the project secured a $340 million financing package, comprising approximately $240 million in long-term debt from African development lenders and $100 million in equity, enabling KEFI Gold and Copper to advance to full-scale construction.

KEFI Executive Chairman Harry Anagnostaras-Adams said the financing had triggered further activity at the project site and allowed the company to finalise remaining equity arrangements with local and specialist investors. He described the timing as favourable, citing high gold prices.

The project, located in Ganji district of West Wollega Zone, was officially inaugurated on 18 February 2026 in the presence of Prime Minister Abiy Ahmed, Oromia Regional President Shimallis Abdisa, government officials and project representatives, as previously reported by Addis Standard.

The project covers about eight square kilometres, approximately 28 kilometres east of Ayra town, and is being developed by KEFI, which acquired the site in 2014. Exploration began in May 2024, following approval by the company's board and coordination with federal and Oromia authorities.

KEFI had also undertaken community consultations on resettlement, compensation and employment arrangements. Infrastructure development, including worker facilities, water supply systems and an airstrip, was reported to have reached 95% completion by August 2024.

Before the latest security incident, project development had been progressing toward KEFI's target of commencing gold production in mid-2028, with work underway on an access road, electricity connection, equipment procurement and phased community resettlement.