MINING IN AFRICA KIBALI PRODUCES FIRST GOLD TARGETING NEARLY 600 000OZ IN 2014 Report by Lionel Williams In short: The new Kibali gold mine in the Democratic Republic of Congo (DRC) could be the catalyst for substantial long-term value creation in the country if it is handled correctly by all its stakeholders. Randgold is developing and operating the mine which, with a projected annual production of some 600 000oz of gold, reserves of 11Moz and resources of 21Moz, will rank as one of the largest of its kind in Africa. T he new Kibali gold mine in the Democratic Republic of Congo (DRC) – which has just poured its first gold and started limited production – could be the catalyst for substantial long- term value creation in the country if it is handled correctly by all its stakeholders. This is the opinion of Randgold Resources chief executive Mark Bristow, whose company has developed and is operating mine. Randgold and AngloGold Ashanti each hold a 45% interest in Kibali, with DRC parastatal Sokimo owning the remaining 10% stake. Randgold Resources chief executive Mark Bristow – talks to his colleagues. Kibali poured its first gold in late September, well ahead of the original target date, and has since started limited commercial production from its open pit mine. It is expected to exceed its 30 000oz production forecast for the fourth quarter of this year and is on track to meet its target of above 550 000oz for 2014. Bristow said the successful start-up of Kibali represented a considerable feat of geology, metallurgy, engineering and logistics, as well as negotiation and diplomacy. “The Randgold team only moved on site in January 2010 and in less than four years it has built a world-class gold mine in one of Africa’s remotest regions, in the process more than doubling its reserves to 11.6Moz and increasing its resources to 21Moz,” he pointed out. “Our focus now is on securing steady-state production at Kibali while completing the rest of the development. But we’re also still maintaining a strong emphasis on exploration, which has traditionally been the driver of Randgold’s growth. At Kibali, where an upgrade of the underground mine plan has already delivered an interim increase in reserves, continued exploration points to a further upside,” Bristow stated. Bristow noted that despite some apprehension in the market about the wisdom of attempting such a giant project in this region, Kibali had been brought into production ahead of schedule and within budget. “We were able to prove the sceptics wrong because all the stakeholders – notably the DRC government and people – wanted this mine, and cooperated energetically to bring it into being. The next challenge is to continue our partnership in this spirit, and to work together to make Kibali successful, so that it can serve as a foundation for building general economic welfare in this region,” he declared. The open pit mine is producing 1Mtpm of ore and the plant is ramping up well, already achieving 80% of its It is currently ramping up to full capacity on the plant’s oxide circuit with the completion of the remaining plant and hydropower stations, and the commissioning of the sulphide circuit, scheduled for next year. The development of the underground mine is also progressing well. Randgold is developing and operating the mine, which with a projected annual production of some 600 000oz of gold, reserves of 11Moz and resources of 21Moz, will rank as one of the largest of its kind in Africa. The mine is being developed in two concurrent phases at an estimated initial cost of US$1.7 billion, starting as an open pit operation, with the underground mine, already well advanced, scheduled to access ore in 2015. 24 MINING REVIEW AFRICA ISSUE 12 2013 Overall view of Randgold’s Kibali gold project in the DRC.