Canadian mining company Allied Gold has poured its first gold at the Kurmuk mine in Ethiopia’s Benishangul-Gumuz region, marking a major milestone in the development of the project and strengthening the country’s ambitions to expand its mining industry.
The first gold pour signals the transition of the mine from construction and development into production, although the company is still working towards the commencement of full commercial operations.
Allied Gold is targeting the start of commercial operations before the end of 2026, with outstanding work on power infrastructure and the mobilisation of its full haulage fleet expected to be completed during November.
The company projects production of between 25,000 and 35,000 ounces of gold this year, before increasing output to between 240,000 and 270,000 ounces in 2027.
Production is expected to rise further to approximately 300,000 ounces in 2028 as the mine moves towards its planned operating capacity.
The company has reportedly described Kurmuk as its lowest-cost mine, a factor that could strengthen its contribution to earnings once operations reach commercial scale.
The project is also among Ethiopia’s early large-scale mechanised mining operations, reflecting the country’s efforts to attract investment, improve mining technology and develop its mineral resources.
The development has attracted investor interest, including from China’s Zijin Gold International, which acquired a 9.2 per cent stake in Allied Gold in August 2026.
The investment underscores growing international interest in African gold assets as mining companies and investors seek opportunities to expand production and diversify their exposure to mineral resources.
For Ethiopia, the commencement of production at Kurmuk could support efforts to increase mineral exports, attract foreign investment and broaden government revenue beyond traditional economic sectors.
Gold mining has become an important part of the country’s strategy to strengthen its extractive industry and improve foreign exchange earnings.
However, the project’s long-term contribution will depend on the successful completion of remaining infrastructure, stable operations and the company’s ability to meet its production targets.
The planned increase in output over the next two years will be closely watched by investors as Kurmuk moves from its first gold pour towards full-scale commercial production.
