JOHANNESBURG (miningweekly.com) − LSE- and Nasdaq-listed gold miner Randgold Resources has started relocating people living on what will become the mine site for the new Kibali gold mine, in the Democratic Republic of Congo (DRC).

The first of 14 villages has started moving to the new Kokiza resettlement village, which will include 3 700 newly built houses.

“We have developed a city like resettlement, where we have integrated 14 villages. It comprises 14 schools and some churches, including a Roman Catholic church complex,” Randgold Resources CEO Mark Bristow said in an interview on Thursday.

Some 15 000 people will have to move to make way for the new mine, which will rank as one of Africa’s largest gold mines.

Randgold is developing Kibali in partnership with gold major AngloGold Ashanti, with each company owning a 45% stake. State-owned mining company l’Office des Mines d’Or de Kilo-Moto owns 10%.

Bristow said that Randgold, which is the operator of the project, was finalising the detailed design for the processing plant and has reached closure on the mining schedules and mining strategy. “We are also currently preparing the tendering process for the underground shaft development and are in the final stage of settling the detailed design for the metallurgical processing plant.”

He added that the final mining schedule and business concept have been signed off and that the company expects to start levelling the ground for platform construction in the next quarter.

Kibali’s reserves currently stand at ten-million ounces and it has an upside potential of a further nine-million ounces. “We guided the market to upside potential of Kibali and it is our intention to start demonstrating why the company believes there is additional upside going forward.”

Bristow said that it planned to develop a 30 MW hydroelectrical power station at Kibali. Nzoro 2 will be able to support low-cost power, which would increase the longevity of the mine and the profitability of the operation.

“When we bought Kibali, no one was interested in the DRC, but what we have seen – and expected to see – is enormous upside potential. Commissioning of the mine is expected to start end-2013, and a lot of money will flow into the region,” Bristow said.

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