Randgold Resources to take delivery of two giant mills

Randgold Resources has said that two giant seven megawhatt mills are currently being transported halfway across Africa, from the east coast port of Mombasa to the mine site at Doko in the north east of the Democratic Republic of Congo (DRC).

By MoneyWeek

published 24 October 2012

in Features

It believes that this is "indicative of the steady progress" that has been made with developments on the Kibali gold project, which, when it pours its first gold, will by one of the largest of its kind in Africa.

The first gold pour is expected for the end of 2013.

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The mills, which when installed will be capable of milling a combined 7.2m tonnes a year, are expected to arrive at the mine site at the end of November.

The firm added that the programme to rehouse villagers from the mine area is progressing rapidly, with 45 new houses built each week.

Randgold Chief Executive Mark Bristow said that once in production, Kibali would prove an "enormous boon" to the DRC, generating economic welfare through the payment of dividends and taxes to the state, which has a 10% stake in the project, as well as creating jobs and a demand for support services for local businesses.

"It's a great example of what can be achieved in Africa when an investor-friendly government partners with a mining company in a long-term commitment to the sustainable creation and sharing of wealth," he said.