Randgold CEO Mark Bristow
Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – LSE- and Nasdaq-listed Randgold Resources has reiterated its commitment to investing in its assets in Mali.
A recently concluded arbitration process cleared up confusion over the interpretation of some points in the country’s 20-year-old mining convention, which included provision for arbitration, thus ensuring that Randgold remained able to maximise the full potential of its Loulo-Gounkoto complex, CEO Mark Bristow said late on Wednesday.
Consequently, the company does not expect any impact on its financial position following the ruling, which is in line with its previously adopted accounting position.
“We have a long history of partnership with Mali and, over that time, the country and the company have had to work hard together to overcome many challenges. Randgold is committed to continuing that cooperation in the interests of securing the long-term sustainability of the Malian economy, and of its backbone, the mining industry,” Bristow said.
He noted that Randgold’s mines in Mali accounted for between 7% and 11% of the country’s gross domestic product, with the Loulo mine having already contributed $2.3-billion to the country’s economy, the Gounkoto mine $600-million and the Randgold-managed Morila $2-billion. This is in the form of royalties, taxes, salaries, payments to local suppliers and community investments.
“Morila is now nearing the end of its life but still has three years of profitable production ahead of it, while the Loulo-Gounkoto complex is currently on track to beat its 2016 production guidance and . . . produce more than 600 000 oz/y of gold for the next ten years.
“In the meantime, our brownfield and greenfield exploration teams continue to expand our asset base and our footprint in Mali, with significant successes within the Loulo-Gounkoto permit area as well as in our other tenements,” said Bristow.