Canadian miner Allied Gold Corporation has achieved first gold production at the Kurmuk Gold Mine in western Ethiopia, the company announced on November 9, 2026. The initial pour marks the transition of the project from development into an operating mine and represents what the company describes as a major step toward establishing its newest producing asset and lowest-cost operation.
Kurmuk, located in the Benishangul-Gumuz region near the Sudanese border, is positioned as a significant test case for Ethiopia's strategy to build a modern mining industry. According to Allied Gold, the mine stands among the first large-scale mechanized operations in the country and is closely watched as an indicator of foreign direct investment appetite in Ethiopian mining. The company consolidated its ownership to 93 percent in September 2023. Its subsidiary, Kurmuk Gold Mine PLC, secured a 20-year power purchase agreement with Ethiopian Electric Power in August 2024 to supply hydroelectric energy to the operation.
Following the initial pour, Allied Gold is preparing to scale up toward full commercial operations. The company expects to complete final power infrastructure installations during November 2026 and fully mobilize its haulage fleet. Commercial production is targeted by the end of 2026, with the mine expected to reach its designed operating capacity in early 2027. Recovery rates are projected to improve steadily through year-end, with Kurmuk targeting between 25,000 and 35,000 ounces of gold in 2026.
Production is forecast to rise significantly in 2027. The company projects output of between 55,000 and 65,000 ounces in the first quarter of 2027, reaching 240,000 to 270,000 ounces for the full year. Allied Gold projects annual output from Kurmuk to reach 300,000 ounces by 2028, then average 300,000 ounces annually over its first four years and 240,000 ounces per year over the total life of the mine.
The Kurmuk development is driving expansion across Allied Gold's wider portfolio. The company projects consolidated production across all its operations to reach between 400,000 and 435,000 ounces in 2026, rising to between 615,000 and 670,000 ounces in 2027, representing a 54 percent increase over its 2026 midpoint. Beyond 2027, the producer aims to hit 800,000 ounces annually by 2029, aided by expansion at its Sadiola mine in Mali. Exploration teams are continuing near-surface drilling at nearby targets including Ashashire, Dish Mountain, and the Tsenge Trend to extend Kurmuk's operational lifespan.