Randgold Resources - Mining Starts at Kibali
JERSEY, CHANNEL ISLANDS -- (Marketwire) -- 07/25/12 --
RANDGOLD RESOURCES LIMITED
Incorporated in Jersey, Channel Islands
Reg. No. 62686
LSE Trading Symbol: RRS
Nasdaq Trading Symbol: GOLD
("Randgold Resources" or "Randgold")
MINING STARTS AT KIBALI AS PARTNERSHIP CONTINUES TO DELIVER PROGRESS
Kinshasa, Democratic Republic of Congo, 25 July 2012 - Open pit mining
has started at the giant Kibali gold project in the DRC, which remains
on track for first production towards the end of next year.
At the same time, decline development for the underground mine has
commenced with a boxcut to open up the tunnel portals, while terracing
for the metallurgical plant, earthworks for the first of four
hydropower stations and infrastructure construction are all progressing
well. Thirteen excavators and 53 trucks are working round the clock
and up to the end of June, more than 500000m3 of soil had been
excavated and 100 000m3 of fill exceeded. Manufacturing of the mills
and hydro turbines is 85% complete and more than 1000 tonnes of
structural steel and platework is en route to the site. The project
currently employs some 3500 people, of whom 700 are housed on site.
The resettlement programme, clearing the site for development, is also
on schedule, with 774 families already relocated to the new model
village of Kokiza. Kokiza will ultimately accommodate 3800 families,
and construction of all their homes, as well as a civic infrastructure
which will include schools, clinics, shops and churches, is progressing
rapidly.
Mark Bristow, chief executive of project developer and 45% shareholder
Randgold Resources, said today that all the challenges presented by a
multi-faceted world-class project in a remote part of Africa had thus
far been successfully overcome, thanks in large measure to the
productive co-operation between Kibali and the DRC government, which
owns 10% of Kibali."The DRC had for years tried to interest the major
mining companies in
this project but all were daunted by its scale and location. When we
came on board in 2009 our first step was to engage the State in a
partnership, and the extent to which both parties have delivered on
their commitment is evident in Kibali's brisk rate of development,"
Bristow said."Another factor in the project's progress is the Randgold
team's
experience of developing gold mines in Africa - Kibali is our fifth
- and its hands-on management style. Our executives can drive
multiple processes running in parallel, making sure that we deliver on
all our objectives, including deadlines and budgets, and keeping seven
sets of contractors in step."
Bristow noted that since acquiring the project in 2009, Kibali had
doubled its reserves, extended the scope and size of the operation,
achieved community acceptance of a large-scale resettlement exercise,
developed infrastructure and started construction ahead of the original
schedule. "We also had to deal with elaborate permitting processes,
logistical challenges and joint venture partners whose buy in had to be
obtained at each stage. All these obstacles were overcome," he said.
Earlier today, Bristow addressed a DRC Ministry of Mines conference on
the country's mining code which is currently being reviewed."We don't have
a problem with the code as it stands, only with its
application," he said. "As investors, one of our key requirements for
a tax system is that it should be stable, predictable and transparent
- we need to be able to plan our tax affairs with a reasonable degree
of certainty. That's why we believe the best way forward for the DRC
government and its mining partners is not to change the rules but to
apply them more efficiently and consistently.""Given the DRC's need for
economic development and its wealth of
mineral resources, the argument for using a stable and
well-administered regulatory regime to promote the country as a major
mining investment destination is so strong as to be unanswerable," said
Bristow.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Except for the
historical information contained herein, the matters discussed in this
news release are forward-looking statements within the meaning of
Section 27A of the US Securities Act of 1933 and Section 21E of the US
Securities Exchange Act of 1934, and applicable Canadian securities
legislation. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, the estimation
of mineral reserves and resources, the realisation of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as 'will', 'plans', 'expects'
or 'does not expect', 'is expected', 'budget', 'scheduled','estimates',
'forecasts', 'intends', 'anticipates' or 'does not
anticipate', or 'believes', or variations of such words and phrases or
state that certain actions, events or results 'may', 'could',
'would','might' or 'will be taken', 'occur' or 'be achieved'. Assumptions
upon
which such forward-looking statements are based are in turn based on
factors and events that are not within the control of Randgold and
there is no assurance they will prove to be correct. Forward-looking
statements are subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of Randgold to be materially different from
those expressed or implied by such forward-looking statements,
including but not limited to: risks related to the integration of
Randgold and Moto, risks related to mining operations, including
political risks and instability and risks related to international
operations, actual results of current exploration activities,
conclusions of economic evaluations, changes in project parameters as
plans continue to be refined, as well as those factors discussed in the
section entitled 'Risk Factors' in Randgold's annual report on Form
20-F for the year ended 31 December 2011 which was filed with the US
Securities and Exchange Commission (the 'SEC') on 31 March 2012.
Although Randgold has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Randgold does not
undertake to update any forward-looking statements herein, except in
accordance with applicable securities laws.
CAUTIONARY NOTE TO US INVESTORS: the SEC permits companies, in their
filings with the SEC, to disclose only proven and probable ore
reserves. We use certain terms in this release, such as 'resources',
that the SEC does not recognise and strictly prohibits us from
including in our filings with the SEC. Investors are cautioned not to
assume that all or any parts of our resources will ever be converted
into reserves which qualify as 'proven and probable reserves' for the
purposes of the SEC's Industry Guide number 7.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ENQUIRIES:
Mark Bristow
Kibali chairman & Randgold
Resources CEO
+223 6675 0122 /
+44 788 071 1386
Louis Watum
GM Kibali Goldmines
+243 994 035464 /
+256 782 239767
Willem Jacobs
Randgold GM operations
Central & East Africa
+27 72614 4053 /
+27 82905 6797
Kathy du Plessis
Randgold investor & media relations
+44 20 7557 7738 /
Email Contact
Website: www.randgoldresources.com
