30th Jul 2015 07:55
LONDON (Alliance News) - Randgold Resources Ltd Thursday said it will take over the underground mining at the Yalea and Gara mines at the Loulo project in Mali as it reaffirmed its commitment to the country but also asked for the government to implement a mining code and a business-friendly tax and fiscal regime.
The Loulo project is the company's flagship operation, in which Randgold holds an 80% stake with the State of Mali owning the other 20%.
In April, Randgold said it was to take over as the operator of underground mining from contractors at the two mines in order to reduce costs and to develop a "multi-skilled Malian mining team". This transition is now nearly complete.
Chief Executive Mark Bristow said the project had grown from two open pits into an operation which now includes two "world-class" underground mines and become a major part of the economy in Mali.
"The complex has already contributed almost USD700 million in taxes, royalties and dividends to the state, and injected an additional USD1.9 billion into the economy through payments to local suppliers, contractors and employees. Randgold is continuing to fund the investment of the substantial capital programme at Loulo, not only in the development of Yalea and Gara, but in a wide range of projects designed to upgrade and enhance the operation and extend the life of the mines," said Bristow.
This work will include further exploration, and Randgold said it has identified a further potentially high-grade target south of the Yalea mine.
"Further investment will, however, require the maintenance of an enabling mining code and a business-friendly tax and fiscal regime, as well as the assurance that agreements and conventions will be respected," added Bristow.
Randgold shares were up 0.2% to 3,820.00 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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