Ethiopian Electric Power (EEP) has signed an agreement with Kurmuk Gold Mine Private Limited Company (Kurmuk PLC) to supply electricity for the mining company’s operations. The agreement was formalized in a signing ceremony attended by EEP’s Chief Executive Officer, Engineer Ashebr Balcha, and the General Manager of Kurmuk PLC, Broks Worku.
The partnership is set to support the construction and operation of a power plant in the Kurmuk district of the Benishangul Gumuz region, an area known for its untapped mineral resources. As per the terms of the agreement, EEP will provide 35 megawatts of electricity to the gold mining facility for 12 years.
The General Manager of Kurmuk PLC expressed his satisfaction with the agreement, noting that the reliable energy supply would be crucial to the success of the gold production plant. The company is on track to begin operations in the 2025/26 fiscal year, with construction activities currently focused on transporting necessary resources to the project site. The gold production facility, estimated to be a USD 500 million investment, represents a major development for the Kurmuk district and the wider Benishangul Gumuz region.
According to EEP, the payments for the energy supply will be made in U.S. dollars. This arrangement is expected to enhance EEP’s foreign currency reserves, contributing to the financial strength of the institution. Additionally, EEP will generate further revenue by handling the design and construction of the power transmission infrastructure required to supply electricity to the mining site. The contract also includes provisions for revisiting the supply and pricing terms if the gold production plant’s energy demands increase in the future.
Source (including image): Ethiopian News Agency
