Randgold CEO Mark Bristow at the Tongon mine
JOHANNESBURG (miningweekly.com) – Randgold Resources’ Tongon gold mine, in Côte d'lvoire, has paid off its shareholders’ loans of $448-million, thereby moving it into a dividend-paying position, CEO Mark Bristow says.
Speaking at the mine’s quarterly briefing in Abidjan, he described this as a significant achievement, particularly in the context of a global gold mining industry characterised by capital write-downs and impairments.
“Tongon has already paid close to $90-million to the Ivorian State in the form of royalties and taxes and the country will now benefit even more from the dividends the government will receive through its 10% carried interest in the mine, as well as the increased revenue when Tongon starts paying full corporate tax at the end of this year,” Bristow said.
He added that, since the mine’s commissioning five years ago, it had also contributed more than $600-million to the local economy through payments to local suppliers, while also having invested almost $6-million in community upliftment projects.
“Ongoing exploration around Tongon has increased its reserves after depletion by 18% since 2009, extending its remaining life by another year. We also continue to look for more multimillion-ounce deposits elsewhere in this highly prospective country and we are about to launch our biggest-ever exploration drive in Côte d’Ivoire.
“This will include a fresh look at the Nielle permit, which includes the Tongon mine, and a geophysical survey, followed by a diamond drilling programme, across our holdings in the north of the country,” he said.
Bristow also cited Tongon as a particularly good example of the success of Randgold’s policy of recruiting, training and empowering nationals of its host countries to run world-class mines in Africa.
The mine’s workforce is 97% Ivorian, with only two members of its management team not being Ivorians.