23rd Apr 2018 17:02
LONDON (Alliance News) - Randgold Resources Ltd on Monday said its confident in achieving its annual target for the Kibali underground gold mine in the Democratic Republic of Congo, despite the country's new mining code.
The FTSE 100-listed gold mining company said it is on track to achieve Kebali's 2018 production guidance of 730,000 ounces, representing a 22% increase on the previous year's output of 596,225 ounces.
Kibali ranks as one of the most automated underground gold mines in Africa and the third-largest open-stoping gold mine in the world. Randgold noted that it represents an investment of more than USD2.7 billion over an eight year period.
Randgold said that it will move from Kibali underground mining by contractors to owner-mining, as the giant project is now compaleted.
"The investment in Kibali was motivated by the stability provision in the 2002 mining code, which in our view has been triggered by the recent promulgation of the 2018 code," said Chief Executive Mark Bristow. "We trust we shall be able to reach consensus on this issue with the government, which we believe is critical to future investment in the country."
At the end of March, mining industry representatives, including Glencore PLC, AngloGold Ashanti Ltd and others, submitted a formal proposal to the DRC Ministry of Mines to address concerns about the new code, particularly about the stability clauses which includes taxation, customs and exchange control.
Despite challenges, Kibali remains committed to advancing the development of its remote region and continues to invest in the employment and upskilling of local people, the company said.
More than 90% of its employees are Congolese nationals, and so far this year Randgold has spent almost USD50.0 million with local contractors, totalling USD1.6 billion over the whole project period.
Randgold shares closed 0.3% lower at 5,724.00 pence each on Monday.
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