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GOLD
November 2016
MODERN MINING
25
new mines over five years
another five years. In the meantime, the pros-
pects for our next mine or mines are taking
increasingly tangible shape. Considering that
we have a business that is designed to be prof-
itable at a gold price of US$1 000 per ounce,
I believe that Randgold still stands alone in
terms of its ability to create and deliver real
value,” Bristow said.
The combined Q3 production for the Loulo-
Gounkoto complex was 158 248 oz (Loulo:
103 871 oz and Gounkoto: 54 377 oz), down 7 %
on the previous quarter (Q2 2016: 170 190 oz),
in line with the expected lower grades.
Tongon produced 71 187 oz of gold in Q3
2016, 41 % up from the previous quarter,
primarily as a result of a 36 % increase in
throughput, a 3 % increase in grade and a 1 %
increase in recovery. Total cash cost per ounce
decreased to US$732/oz (Q2 2016: US$932/oz)
on the back of an increase in gold production
and a reduction in operating costs.
Kibali produced 150 431 oz in Q3, a 23 %
increase on the prior quarter, at a total cash
cost of US$747/oz (Q2 2016: US$823/oz). As
reported in the previous quarter, the plant
operations stabilised towards the end of Q2 and
processing benefited in Q3, with record through-
put and improved recovery. Kibali began mining
the fourth satellite pit, Kombokolo, during the
quarter with three satellite pits now in produc-
tion, which will contribute to the Q4 mine plan.
In commentary accompanying its quarterly
results, Randgold says a key focus at Kibali this
year has been on managing the variability of its
ore feed to ensure the plant has a flow sheet
design capable of handling multiple ore types,
while developing the capacity to treat 100 %
sulphides as the operation’s contribution from
underground grows.
Capital Projects Executive John Steele
explains that Kibali will ultimately be an under-
ground mine requiring a sulphide processing
circuit. (Under the current business plan, some
80 % of Kibali’s Life of Mine production will
come from underground.) However, over the
past two years, while the underground mine
was being developed, it needed the flexibility
to treat oxide and transitional material from the
KCD open pit and the satellite deposits.
“We’ve identified the opportunities as well
as the gaps and bottlenecks in the process, and
work continues to ensure that we have the
best fit for all the components of the ore feed.
Among other improvements we’re planning
to introduce additional ultrafine grinding and
preconditioning facilities to augment capacity
as the underground mine moves to full produc-
tion and the proportion of sulphides increases,”
says Steele.
In another interesting development at Kibali,
the third hydropower project, the multi-million
dollar Azambi project, will be constructed by
a syndicate of independent Congolese con-
tractors. This commitment has been made in
terms of the Randgold philosophy of building
thriving host communities by developing their
economies and investing in skills transfer and
training.
The construction will be overseen and sup-
ported by a Kibali owner’s team, who will
steer the programme and interface between the
contractors and the professional engineers to
ensure compliance with project specifications
and quality control protocols.
The tender approach was based on allocat-
ing the main civil works to local companies
who had built up a track record with Kibali
during its construction period. One of these,
Inter Oriental Builders, started as a one-man
brick-making operation four years ago when the
development of the mine started. With a loan
and support from Kibali, it has since grown into
a substantial civil works and earthmoving busi-
ness. The other main contractors, Traminco and
Top Engineering, also have a long involvement
with the mine.
Photos courtesy of Randgold
“Considering
that we have a
business that
is designed to
be profitable at
a gold price of
US$1 000 per
ounce, I believe
that Randgold
still stands alone
in terms of its
ability to create
and deliver real
value.”