The Malian government has granted Randgold Resources’ Gounkoto mine a 50% corporate tax reduction for the next four years to support the development of a superpit at the mine.

The agreement, which is a concession under Gounkoto’s original mining convention that gave Gounkoto the right to apply for additional tax exonerations should it make additional investments, will see the mine’s life extended by more than five years.  

The proposed superpit will make a significant contribution to the Loulo-Gounkoto complex’s ten-year plan, which envisages profitable production in excess of 600 000 oz/y at a gold price of $1 000/oz.  

Randgold on Thursday said that, depending on the gold price and input costs, the potential revenue to the State would increase by more than 100% when compared with the original Gounkoto feasibility study.

CEO Mark Bristow said the deal was another milestone in the mutually rewarding partnership between the company and the Malian government.

“Over more than 20 years, that partnership has enabled us to bring Syama to account, develop Morila and build Loulo-Gounkoto into one of the world’s largest gold mines. 

“During that time, our operations have contributed $5.9-billion to the Malian economy in the form of taxes, royalties, dividends, salaries and payments to local suppliers. The Malian government received $2.5-billion of that amount, which represents more than 60% of the net cash generated by the mines,” he pointed out.

During the past quarter, another robust performance from Loulo’s underground mines offset a reduced contribution from Gounkoto, where the pushback for the superpit is in progress, as planned.

At Morila, mining of the Domba satellite pit has been completed, and Randgold is now processing the lower-grade tailings material. 

The Ntiola and Viper satellite deposits are scheduled for mining until early 2019, with closure of the Morila mine planned for 2020.

On the exploration front, brownfield work at Loulo is confirming the potential for reserve replenishment while, further afield, the search for another world-class gold deposit continues along a highly prospective 75 km strike on the Mali–Senegal shear zone.