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Kibali on Track as it Prepares for Completion of Underground Mine

V.TRAN, T.GOLD

Kibali on Track as it Prepares for Completion of Underground Mine


Kinshasa, DRC (FSCwire) - The Kibali gold mine remains on track to achieve its production target of 610 000 ounces this year as its underground operations and the integration and automation of the vertical shaft enters the final commissioning and automation stage, Randgold Resources chief executive Mark Bristow said here today.  The mine is anticipating a significant increase in production once the final shaft commissioning, which remains on a tight schedule, has been completed.

At a briefing for local media, Bristow said in spite of the high level of activity at the mine, there had been a significant improvement in the safety statistics, with its total injury frequency rate continuing to decrease and lost time injury frequency rate down to 0.31 per million hours worked in the September quarter.

Following the anticipated completion of the underground mine in the fourth quarter, the only major capital project still in the works would be Kibali’s third new hydropower station, currently being constructed by an all-Congolese contracting team.  Bristow said the availability of self-generated hydropower and the mine’s high degree of mechanisation and automation were important factors in Kibali’s ability to sustain its profitability throughout the ups and downs of the gold price cycle.

To date, over $2 billion has been spent on acquiring and developing Kibali, of which the majority had been paid out in the form of taxes, permits, infrastructure and payments to local contractors and suppliers.

“With capital expenditure tapering off, Kibali should now be preparing to pay back the loans taken to fund its development.  We are concerned, however, that its ability to do so will be impeded by the increasing amount of debt – currently standing at over $200 million – owed to the mine by the government.  TVA refunds, excess taxes and royalties in violation of the country’s mining code, make up the bulk of this amount,” Bristow said.

Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/7304T_1-2017-10-16.pdf

This information is provided by RNS

The company news service from the London Stock Exchange


To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/Randgold10162017.pdf
Source: Randgold Resources Limited (LSE:RRS, NASDAQ:GOLD)

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