Modern Mining November 2016

GOLD

new mines over five years

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.”

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

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