Randgold Resources: 'Kibali gold project to give half of revenue to DRC'

FTSE 100 listed gold mining and exploration company Randgold Resources has promised that the Kibali mine in the Democratic Republic of Congo will 'return about half of its revenue to the state in the form of taxes, royalties and dividends, in a statement issued on Thursday.

The mine, in which Rangold Resources owns a 45% stake, is expected to produce the first gold by the end of this year and has an estimated life of 20 years.

According to Randgold Resources, the combined pit and mining operation plans to produce an average of more than 600,000 ounces per year between 2014 and 2023, potentially making it one of the largest gold mines in the world.

Mark Bristow, Chief Executive Officer of Randgold Resources, stated that the project would bring lasting economic benefits to the whole country.

He said that the Kibali project is currently providing employment to 6,000 Congolese individuals and 12 Congolese contractors have been appointed to construct the new model village of Kokiza. Some 1,800 families have been relocated to date from the mine site to Kokiza where the company said new houses were being built at a rate of 45 per week.

According to the World Bank, the country's vast mineral and agricultural resources have the potential to make the Democratic Republic of Congo one of Africa's richest countries and one of the continent's key engines for growth.

However, the country is currently recovering from a series of conflicts that occurred in the 1990s and remains a fragile post-conflict country much in need of enormous reconstruction and economic growth.

The United Nations estimates that there are some 2.3m displaced persons and refugees in the country and more than 300,000 Democratic Republic of Congo nationals living in refugee camps outside the country.

The humanitarian crisis in the country remains major concern, according to the World Bank.

MF