Kibali mine in DRC on track despite new code gripes

RANDGOLD Resources said the completion of an underground shaft system and third hydropower plant at the Kibali gold mine in the DRC remained on track despite possible changes to the country’s mining legislation.

Randgold chief executive Mark Bristow said yesterday the projects would deliver the mine to nameplate design later this year.

Kibali is a joint venture between Randgold, AngloGold Ashanti and DRC parastatal SOKIMO.

It is operated by Randgold and represents an investment of more than $2.5 billion (R32.3bn). Kibali comprises an integrated open pit and underground operation, as well as a 7.2 million tonsa-year processing plant.

The mine poured its first gold in September 2013 from openpit mining and is developing the underground mine via twin declines and a vertical shaft.

Bristow said Kibali was maintaining a steady operational performance and was well positioned to meet its production target of 610 000 ounces of gold this year.

Kibali had contributed $2.2bn to the Congolese economy since the project was launched in 2010, he added, mostly in taxes, salaries and payments to suppliers.

The mine has repatriated more than 40% of its gold revenue since 2013, meeting and exceeding the requirements of the country’s mining code.

The government is considering changes to this code, and Bristow said this represented an opportunity to lay the foundations for a sustainable mining industry in the DRC.

“I am concerned, however, that the government is not engaging in open and inclusive consultations with the industry and appears to be proceeding from a predetermined position that may put existing and future mining investments at risk,” he said.

“The mining industry is the main engine of the Congolese economy. Government and the private sector must work together to find the best way of growing this industry, and to avoid potentially damaging short-term actions by realistically considering their consequences.”

Despite Randgold’s concerns about revisions to the code, it was continuing to invest in the country, Bristow said. In addition to ongoing exploration along Kibali’s KZ structure, it has been progressing on the Moku project and the Ngayu belt. – ANA