Addis Abeba — Canadian mining company Allied Gold has poured its first gold at the Kurmuk mine in Ethiopia's Benishangul-Gumuz Regional State, marking a major milestone for the project as the company targets commercial production by the end of 2026.
The first gold pour transitions Kurmuk into production, making it Allied Gold's newest and lowest-cost operation, according to Mining Technology, which reported the development on 10 November. The company said installation of the remaining power infrastructure and mobilisation of its full haulage fleet were still underway, with both expected to be completed this month.
Allied Gold aims to bring the mine to its full designed capacity in early 2027, with gold recovery rates expected to increase progressively through 2026. The company projects production of between 25,000 and 35,000 ounces this year, rising to between 240,000 and 270,000 ounces in 2027 and approximately 300,000 ounces in 2028.
The company expects average annual production of around 300,000 ounces during the mine's first four years, before stabilising at approximately 240,000 ounces annually over the remainder of its operating life.
Allied Gold's management and board of directors credited the project's Ethiopian and international teams, as well as the Ethiopian government, for supporting its development. The company described Kurmuk as one of the country's first large-scale mechanised mining operations.
The milestone follows growing international investment interest in the project. On 20 August, Addis Standard reported that China's Zijin Gold International had acquired a 9.2% stake in Allied Gold for nearly $300 million, giving it partial ownership of the company's mining portfolio, including Kurmuk.
The investment followed the collapse of an earlier proposed $4 billion acquisition of Allied Gold by Zijin after the companies failed to secure Chinese regulatory approval. The two companies subsequently proceeded with the minority shareholding agreement.
Allied Gold, which also operates mines in Mali and Côte d'Ivoire, projects consolidated production of between 400,000 and 435,000 ounces in 2026, increasing to between 615,000 and 670,000 ounces in 2027. It aims to raise annual output to approximately 800,000 ounces by 2029, supported partly by expansion at its Sadiola mine.
Allied Gold had been advancing exploration at Kurmuk ahead of the latest production milestone. In December 2025, the company announced five new exploration targets at the project, saying drilling results had strengthened its prospects for developing a high-volume, long-life gold operation.
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Among the results, a drill hole in the Tsenge-Hiccup Hill zone intersected 16.4 metres grading 13 grams of gold per tonne from a depth of 43 metres, while another in the Tsenge-Setota zone intersected 10.5 metres grading 1.85 grams per tonne from 161 metres downhole. Mining analyst Mohamed Sidibé of National Bank Financial described the findings as constructive, citing their implications for further exploration potential at Kurmuk.
The project has also attracted growing Chinese investment interest. In August 2026, Addis Standard reported that Zijin Gold International had acquired a 9.2% stake in Allied Gold for nearly $300 million, giving the Chinese company partial ownership of its mining portfolio, including the Kurmuk project. The investment followed the collapse of a proposed $4 billion takeover after Zijin failed to secure the required Chinese regulatory approval, prompting the companies to pursue a minority shareholding arrangement instead.
Read the original article on Addis Standard.
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