Name and Location
Kibali gold mine, 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
The Kibali operation will comprise an integrated underground and openpit mine, a twin-circuit sulphide and oxide plant with a throughput of six-million tonnes a year, three self-constructed hydropower stations and a standby high-speed thermal power generator for spinning reserve and backup power during the dry season.

The mine was constructed over two overlapping phases.

Phase 1 covered the metallurgical plant; the first phase of the tailings storage facility; the construction of a hydropower station, a backup thermal power plant, the tailings storage facility and all shared infrastructure; openpit mining; and the completion of the community resettlement programme.

Phase 2 involves the development of the underground mine, including a twin decline and single-shaft vertical system, and the remaining hydropower stations.

The current life-of-mine plan envisages an output of 550 000 oz in 2014, followed by 600 000 oz in the next 12 years, with an average grade of 4.1 g/t and 12-million ounces in reserves.

Net Present Value/Internal Rate of Return
Not stated.

Value
Kibali represents an initial investment of $1.83-billion, excluding preproduction mining expenses by Randgold and AngloGold Ashanti.

Duration
Phase 1 ran from the first quarter of 2012 to the first quarter of 2014.

Phase 2 is expected to deliver first ore in 2014 and to complete the vertical shaft sinking in 2016.

Latest Developments
Randgold has reported that the Kibali mine is now well advanced into the second and final phase of development that will take it to full production by 2018.
Randgold CEO Mark Bristow says that, with the final commissioning of the metallurgical plant and the first of three hydropower plants, Kibali is now operating at design capacity, with the ramp-up having been delivered according to schedule.

The project’s priorities for the year include advancing development of the underground mine, which will complement the existing openpit operations; ramping up yearly output to 600 000 oz of gold; commissioning the second hydropower plant and starting work on the third; and continue expanding and upgrading the local skills base.

Randgold reports that despite the size and complexity of the operation and the high level of activity on site, Kibali is maintaining a good safety record, recently posting two-million lost-time injury-free hours. The local incidence of malaria, which kills more people in Africa than any other disease, has also been reduced by 55% since the start of the project in 2011.



“As we’ve said from the start, we believe Kibali could be the engine that drives not only the transformation of its region but also the foundation for the development of a new mining frontier in north-east Congo to rival Katanga. One of our key objectives is to show the rest of the world that the country is a safe and attractive destination for new investment, which is needed to develop its extensive mineral potential,” Bristow notes.

He adds that achieving that goal will, however, require the active involvement and support of the DRC government.

“In its present form, the country’s proposed new mining code will deter rather than attract investors, which is why Randgold is committed to working with the authorities to produce a code capable of competing with those of rival exploration and mining destinations,” Bristow advises.

Other issues that require the DRC government’s attention are the maintenance of law and order in a dynamic environment, the perennial problem of illegal mining and the overdue settlement of tax reimbursement.

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?
Kibali was successfully commissioned ahead of schedule and within budget on September 24, 2013, with gold sales starting the following month.

Contact Details for Project Information
Randgold Resources, tel +44 20 7557 7738 or email randgold@dpapr.com.
Byrnecut, tel +61 8 9270 1000 or fax +61 8 9270 1001.
Shaft Sinkers, tel +27 11 445 4300 or email info@shaftsinkersgroup.com.
DRA, Christoff Badenhorst, tel +27 11 202 8600 or email info@DRAglobal.com.