1st Aug 2018 17:40
LONDON (Alliance News) - Randgold Resources Ltd said Wednesday its Gounkoto mine in Mali has been given a 50% tax cut to support construction of a "super pit".
The corporate tax cut will last for the next four years while the super pit extends the life of the mine by more than five. The plans will see Gounkoto becoming "one of the largest opencast gold mines in Africa".
The FTSE 100-listed mining company's 10-year plan for its Loulo-Gounkoto complex, which includes the super pit construction, is aimed at a profitable production exceeding 600,000 ounces of gold at a price of more than USD1,000 per ounce.
"During the past quarter, another robust performance from Loulo's underground mines offset a reduced contribution from Gounkoto, where the pushback for the super pit is in progress as planned. Since moving to owner mining at Loulo in 2016, the underground operations have delivered steady production increases and efficiency improvements," Randgold said in a statement.
Shares in Randgold closed down 1.7% at 5,574.62 pence each.
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