Violence at a new mining site in Ethiopia run by Kefi Gold and Copper led to multiple deaths and a suspension of operations, the company says.

The company said on Monday there had been "a serious security incident resulting in multiple fatalities."

It did not specify the nature of the incident, which occurred last Friday in Ethiopia's central Oromia region, or how many people were killed but said the casualties included security personnel, members of the local community and one employee.

It was also not clear who carried out Friday's attack, though the area suffers widespread insecurity.

Security challenges

Kefi Gold and Copper, which also operates sites in Saudi Arabia, was in the process of building a road and electrifying the site, and said a plan was in place to compensate displaced local communities.

The office of Prime Minister Abiy Ahmed is yet to comment on the development.

The mining company says work is suspended pending talks with the government and stakeholders on security.

Work at the prospective gold mine began in March and was due to start production in 2028.

Gold exports in Ethiopia generated $5.65 billion last year, according to the Mines Ministry, and are a crucial source of foreign exchange.