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Mining
African gold is a longstanding component of the continent’s cornucopia of mineral resources. Mali is the third-largest gold producer in Africa and generates more than 65 tonnes of the precious metal a year. Randgold is one of the largest Mali-focused mining companies, with mines also in Cote d’Ivoire and the DRC.
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andgold Resources was founded in 1995 to be “a business unlike any other in the industry, focused on gold and Africa, designed to create value of rall its stakeholders, in bad times as well as good”. The company handles every aspect of the mining process, from prospecting and exploration through development and finally operation and production, ensuring an integrated mining operation that’s coherently managed every step of the way.
The company currently operates fi ve mines across Africa with more in the pipeline, including the Kibali gold mine in the DRC, the Morila and LouloGounkoto mine complexes in Mali, the Tongon Gold Mine in Cote d’Ivoire and the Massawa Feasibility Project in Senegal. These projects contain a total reserve of around 20.9 million oz of gold between them and look set to be joined by many others in the future as Randgold assembles a robust pipeline of explorations and future projects.
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Language barriers. 9.8 million injury free man-hours. Minimal infrastructure. Political instability. A 7.2 Mtpa gold plant delivered 3 months ahead of schedule. Impossible? Not for DRA. Kibali Gold in the DRC produces 600 000 oz of gold every year. Acknowledging the community, 4000 homes were saved and relocated. Started in 2012, completed in 2014, three months ahead of schedule with exceptional safety statistics, under budget for our client.
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Extraordinary Possibilities
R a n d g o l d
Being prepared
Randgold is committed to working with the governments of its host countries and ensuring that they create sustainable industries and operations that provide longterm benefi ts and improvements to all stakeholders including the local people. They ensure that safety, community grievances and sustainable waste management and energy use are priorities at their gold mines. One reason for the company’s success and stability even while operating in less stable countries and under much less stable commodity prices, has been their forward planning and preparation. The company’s ethos has always been predicated on a
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R e s o u r c e s
strict set gold price of $1,000 per ounce, planning and proposing accordingly.
the prices dip below expected levels and prevents them from over-extending.
While gold prices have climbed far above that point and remain consistently high, especially thanks to recent geopolitical shocks that have sent investors worldwide rushing to buy more gold to protect themselves, this deliberately understated planning helps Randgold weather shocks when
The company maintains its focus on gold in order to give it undiluted exposure to the upsides of the rising gold price, and continuous price rises combined with the company’s proven ability to track and exploit multi-million ounce gold deposits have ensured a profitable future going forward.
“The company handles every aspect of the mining process, from prospecting and exploration through development and finally operation and production
A leading EPCM company having delivered mineral beneficiation projects on the African continent for nearly three decades
Tongon Project
Côte d’Ivoire
Committed to Excellence Photograph courtesy of Randgold Resources Limited
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R a n d g o l d
R e s o u r c e s
Rising profits
Randgold’s production and profits have risen steadily during the last few years, up 38% to $269.7 million in the first six months of 2017 with revenue up 16% to $635 million. They’re listed on the FTSE 100 with a consistently solid share price in the UK markets, with shares at around £70. Alongside a robust programme of exploration and feasibility studies across western and central Africa, Randgold is also aiming to develop a “super pit” at the Loulo Gounkoto permits it operates in Mali. Exploration in the area has turned up enough gold to replace previously depleted pits and ensured a long production life for the complex, which has a predicted annual output of 600,000oz.
“The secret to surviving these problems is to stay flexible The company’s Morila mine, meanwhile, has begun development of a satellite mine and purchasing of several other permits, which will allow it to fund its eventual closure and postmining cleanup. The eventual intended end result is the conversion of the mine into an agribusiness centre to strengthen the local agricultural economy.
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Resource nationalism
In Mali, Randgold is moving past disputed tax claims and focusing on helping the Malian government prepare for future mining operations. In a post on the Randgold site, the company’s CEO Mark Bristow noted that the industry’s future depends on successful exploration and Mali’s ability to attract investment. “The question is whether the country’s existing mining code and fi scal regime are sufficiently attractive to foreign investors. The industry and the government, led by the minister of mines, have had a very constructive engagement on this and other issues – such as the destructive impact of illegal mining – and we’ve agreed to work together to find mutually acceptable solutions.”
However, Bristow also noted a number of less positive trends in the African resources markets including “resource nationalism”, the attempts by governments to assert control over their natural resources. Acacia, another gold mining company, is currently locked in tax disputes of its own with Tanzania, and other mining organisations are feeling the squeeze. The secret to surviving these problems is to stay flexible. “Resource nationalism is often born out of frustration, and sometimes out of unreal expectations,” Mr Bristow said. “We operate in very complex countries. We spend a lot of time engaged with government. And what we are able to do is demonstrate how much we’ve contributed to the economy. It’s a challenging environment – you’ve got to be on your toes.”
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