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Kibali gold mine, Democratic Republic of Congo

20th October 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name and Location
Kibali gold mine.

Location
Orientale province, Democratic Republic of Congo (DRC).

Client
The Kibali joint venture comprises Randgold Resources (45%), AngloGold Ashanti (45%) and DRC State-owned mining company Société des Mines d’Or de Kilo-Moto (10%).

Randgold is the developer and operator of the mine.

Project Description
Kibali ranks as one of the largest gold mines in Africa. It has a reserve base estimated at 11.6-million ounces and it continues to grow.

The mine comprises an integrated openpit and underground operation, as well as a 7.2-million-tonne-a-year processing plant.

Production from the project’s openpit started in September 2013.

The underground mine includes a twin decline and single-shaft vertical system, and four hydropower stations supported by a thermal power station for low rainfall periods and as back-up.

Jobs To Be Created
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Value
The project represents an investment of more than $2.5-billion by the project partners.

Duration
Production from the openpit started in September 2013.

The vertical shaft system is expected to be handed over in 2017.

Latest Developments
The Kibali gold mine remains on track to achieve its production target of 610 000 oz this year as its underground operations and the integration and automation of the vertical shaft enters the final commissioning and automation stage.

Randgold is expecting a significant increase in Kibali’s production once final shaft commissioning, which remains on a tight schedule, has been completed.

Following the expected completion of the underground mine in the fourth quarter, the only major capital project still under way will be Kibali’s third new hydropower station, which is being built by an all-Congolese contracting team.

To date, more than $2-billion has been spent on acquiring and developing Kibali, of which the majority has been paid in the form of taxes, permits, infrastructure and payments to local contractors and suppliers.

“With capital expenditure tapering off, Kibali should now be preparing to pay back the loans taken to fund its development. We are concerned, however, that its ability to do so will be impeded by the increasing amount of debt – currently . . .  at more than $200-million owed to . . . the DRC government,” Randgold CEO Mark Bristow has said.

He has pointed out that another troubling development is the recent reintroduction to Parliament, by the Ministry of Mines, of a proposed new mining code, which is the same as the one the government withdrew in 2015 after it was comprehensively demonstrated that it would seriously damage or even destroy the Congolese mining industry.

Key Contracts and Suppliers
Byrnecut (underground development); Shaft Sinkers (vertical shaft development); DTP (openpit mining) and DRA (metallurgical facility design and engineering, procurement and construction management).

On Budget and on Time?
The Kibali openpit was successfully commissioned ahead of schedule and within budget on September 24, 2013.

Contact Details for Project Information
Randgold Resources, tel +44 20 7557 7738 or email randgold@dpapr.com.

Edited by Creamer Media Reporter

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