Allied Gold Corporation announced that its subsidiary, Kurmuk Gold Mine PLC (KGM) has signed a Power Purchase Agreement (PPA) with Ethiopian Electric Power (EEP) to provide energy for the Kurmuk Gold Project in Ethiopia. The agreement ensures a steady and sustainable energy supply for the mine, which is expected to start operations in the second quarter of 2026.

The PPA, which will last 20 years with the possibility of extension, sets a fixed energy charge of $0.04 per kWh. The energy will be sourced primarily from Ethiopia’s hydroelectric power. This is a significant step for the Kurmuk Gold Project, which aims to be one of the lowest-cost gold mines in the world.

The project will receive power through a new 75km, 132kV power line, with substations at Asosa and the project site. The Ethiopian government will provide the grid connection, increasing its equity stake in KGM from 5% to 7%, as outlined in the Kurmuk Development Agreement.

The Kurmuk Gold Project, located in western Ethiopia, represents a key development for Allied and the region. The project implementation team, known for its strong African project delivery capabilities, has made significant progress since the fourth quarter of 2023, focusing on early works and execution planning. To date, the team has completed execution planning and preparation activities, including mobilizing the EPCM contractor to the site, advancing detailed engineering, and formalizing the procurement plan.

Key milestones achieved include the mobilization of essential logistics, the construction of the starter camp, and the successful completion of a temporary water dam by a local earthworks contractor under the supervision of DRA. The dam was completed on schedule and is now full. Additionally, the construction of the main 1,600-person camp is well underway, with earthworks, civil works, and module deliveries progressing as planned.