Name and Location
Kibali gold mine, Orientale province, Democratic Republic of Congo (DRC).

Client
The Kibali joint venture comprises Randgold Resources (45%), AngloGold Ashanti (45%) and DRC State-owned mining company Société des Mines d’Or de Kilo-Moto (10%).

Randgold is the developer and operator of the mine.

Project Description
The Kibali operation will comprise an integrated underground and openpit mine, a twin-circuit sulphide and oxide plant with a throughput of six-million tonnes a year, three self-constructed hydropower stations and a standby high-speed thermal power generator for spinning reserve and backup power during the dry season.

The mine was constructed over two overlapping phases.

Phase 1 covered the metallurgical plant; the first phase of the tailings storage facility; the construction of a hydropower station, a backup thermal power plant, the tailings storage facility and all shared infrastructure; openpit mining; and the completion of the community resettlement programme.

Phase 2 involves the development of the underground mine, including a twin decline and single-shaft vertical system, and the remaining hydropower stations.

The current life-of-mine plan envisages an output of 550 000 oz in 2014, followed by 600 000 oz in the next 12 years, with an average grade of 4.1 g/t and 12-million ounces in reserves.

Value
Kibali represents an initial investment of $1.83-billion, excluding preproduction mining expenses by Randgold and AngloGold Ashanti.

Duration
Phase 1 ran from the first quarter of 2012 to the first quarter of 2014.

Phase 2 is expected to deliver first ore in 2014 and to complete the vertical shaft sinking in 2016.

Latest Developments
Randgold Resources has reported that the Kibali gold mine is approaching operational steadiness as it continues to ramp up mining and production. The mine is well positioned to achieve its goal of delivering an average of 650 000 oz/y of gold over the next ten years, Randgold Resources CE Mark Bristow has said.

Bristow says there have been major advances in the mine’s development in the quarter to June, including the commissioning of the first of four hydropower plants; the completion of the secondary crushing, flotation and concentrate recovery circuits, and the accessing of the underground ore. The current emphasis is on completing the development of the underground mine, commissioning the second hydropower plant and fine-tuning the process to ensure that it consistently achieves its design targets. Another focus area is the continuing Congolisation of the Kibali management team.

The development of Kibali has injected $600-million directly into the Congolese economy. It is also benefiting the surrounding communities by supporting the growth of a local economy, with the establishment of banks, shops, service stations and mobile phone operations in recent months and by providing health and educational resources for towns and villages in the area.

Meanwhile, Bristow has asked the national and regional governments to match Randgold’s commitment by providing a fiscal and regulatory environment that will encourage further investment by other mining companies.

Against this background, Bristow has said he trusts that the government’s current review of the DRC mining code will produce an investor-friendly result, noting that the existing code is skewed in the State’s favour – compared with mining codes in the surrounding African countries competing for investment – and that troublesome issues, such as access to new ground and the continuing problem of illegal mining, will be addressed effectively.

Key Contracts and Suppliers
Byrnecut (underground development); Shaft Sinkers (vertical shaft development); DTP (openpit mining) and DRA (metallurgical facility design and engineering, procurement and construction management).

On Budget and on Time?
Kibali was successfully commissioned ahead of schedule and within budget on September 24, 2013, with gold sales starting the following month.

Contact Details for Project Information
Randgold Resources, tel +44 20 7557 7738 or email randgold@dpapr.com.
Byrnecut, tel +61 8 9270 1000 or fax +61 8 9270 1001.
Shaft Sinkers, tel +27 11 445 4300 or email info@shaftsinkersgroup.com.
DRA, Christoff Badenhorst, tel +27 11 202 8600 or email info@DRAglobal.com.