28th Jul 2014 10:24
LONDON (Alliance News) - Randgold Resources Ltd Monday said its Tongon gold mine in the Ivory Coast is continuing to make achievements in its plans to deal with technical difficulties that have impacted its performance but the planned ramp-up in production has not been achieved this year.
The FTSE 100-listed mining company's Chief Executive Mark Bristow told local media in Ivory Coast on Monday that the ramp up at Tongon was not achieved due to its need to expand the flotation circuit and a recent mechanical failure of crushers which were intended to improve the recovery and throughput rate on site.
Bristow said that expansion of the flotation circuit is now underway and the crusher supplier, Sandvik, had agreed to replace the Vibrocone crushers with conventional cone crushers. The company said the first two new crushers were already on site and the project development should be completed in the fourth quarter.
The additional improvements should increase mill throughput and improve the quality of crushed production and so Bristow said that Tongon should see a steady improvement in performance in the second half of the year.
However, due to the delays, Bristow now expects Tongon's 2014 production rate to fall within 10% short of its original guidance of 260,000 ounces.
"Considering the challenges Tongon has had to deal with, this is a creditable performance and a tribute to the team and the ongoing support from Sandvik," Bristow said.
The company added that it is positive on the wider issue of gold mining in Ivory Coast but Bristow hoped that the process of issuing licenses in the country could be sped up.
"Randgold is very positive about Ivory Coast's potential and we're keen to expand our presence here. However, for that to happen, we need a constant supply of the permits and targets that will deliver our next new discovery. We've had two new permits granted but we still have ten applications that are outstanding," Bristow said.
Randgold Resources shares were up 0.5% to 5,140.00 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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