HomeGoldMali gold mining companies remain optimistic

Mali gold mining companies remain optimistic

Randgold’s Loulo
mine in Mali “’ still
has fuel for 14 days
Johannesburg, South Africa — 05 April 2012 – Gold companies with mines in Mali are playing down the risk of border closures and fallout from sanctions imposed on the West African nation in the wake of last month’s coup.

Mali’s largest investor, Randgold Resources, and Africa’s largest gold producer, AngloGold Ashanti, say they have enough supplies of fuel to sit out any immediate changes in the way they do business.

“There is no revolution and there is no conflict so there is no threat to life or limb, Randgold Resources chief executive Mark Bristow told Reuters.

Bristow said the company, which sources two-thirds of its gold from Mali, had no problem bringing in fuel and shipping gold despite border closures by the 15-state Economic Community of West African States,designed to squeeze Mali’s economy.

“Those sanctions haven’t all been applied yet. They are being applied, I believe, but we are still shipping fuel and goods through some of the borders,” Bristow added.

Randgold had 440,000 litres of diesel delivered on Tuesday night, giving its Loulo complex about 12 days’ supply and its Morila mine around 14 days of fuel.

Morila “’ a joint venture with AngloGold “’ is 280km southeast of Bamako, and Loulo sits in the west of Mali, bordering Senegal, 350kmwest of Bamako.

Besides Morila, AngloGold is a joint venture partner with Canadian gold producer IAMGold in two other mines in Mali “’ Sadiola and Yatela.

The Malian government holds up to 20% in all of these mines.

AngloGold, whose Malian operations make up just 4% of its annual production, said it too had sufficient supplies to continue operations in the near term.

“I’m an optimist and we have navigated these sorts of things in other countries in the past; there is no reason why we should not be able to navigate this, but we are watching very closely,” said Anglogold chief executive Mark Cutifani.

Source: Reuters. For more information click here.