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Avion Gold Corp AVGCF



GREY:AVGCF - Post by User

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Post by rollindiceon Mar 28, 2012 7:52pm
295 Views
Post# 19730909

Rebels know the importance of Mining in Mali

Rebels know the importance of Mining in Mali

LONDON (Reuters) - Randgold Resources and other miners operating in Mali have met representatives of a military group that last week ousted the country's president, in an effort by coup leaders to reassure the industry that fuels the country's exports.

Randgold, which has some two-thirds of its production in Mali, has seen its shares drop almost 16 percent since news of a coup hit the market last Thursday. Its mines have continued to operate, but analysts have fretted over the impact of increased perceived risk on its appeal to investors.

Randgold said the junta, known as the National Committee for the Return of Democracy and the Restoration of the State (CNRDRE) had assured mining executives at the meeting in the Malian capital Bamako earlier this week that "the situation was under control and that the state was still functioning".

"The CNRDRE representatives also assured them that they were well aware of the importance of the mining industry to the Malian economy," Randgold said in a statement.

Mali is the third-largest gold producer in Africa, after Ghana and South Africa, and gold is one of the country's top exports. Miners are also a key source of tax revenue.

Randgold's Chief Executive, Mark Bristow, currently at the company's Loulo complex in Mali, said fuel supplies had been replenished and all of Randgold's operations in the country were operating.

Other miners with significant operations or exploration projects in Mali include Iamgold, Avion Gold and Cluff Gold. AngloGold and Gold Fields are also working in the country.

Randgold shares were trading down 0.9 percent at 5,575 pence at 1400 GMT, outperforming a 1.8 percent drop in the broader mining sector

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