Africa-focused Randgold Resources has agreed to pay the Mali government $25-million (CFAfr15-billion) on the understanding that the parties will soon sit down to resolve all Randgold group tax issues.
The gold miner, which operates three mines in Mali, is disputing the tax assessments for 2011, 2012 and 2013.
The company, on Wednesday, expressed disappointment at the Mali government’s decision earlier this month to close its Bamako offices and freeze its Malian bank accounts, demanding a further payment as a condition of their reopening. This took place while Randgold said it was in the midst of efforts to settle this issue amicably.
“To demonstrate our good faith, and our sympathy with the financial difficulties the country is currently experiencing, we have agreed to an advance of CFAfr15-billion ($25-million) on the understanding that both parties will soon sit down to arrive at a final and global solution to all Randgold group tax issues. Any overcharges in the disputed assessments will be returned to us at the end of this process,” CEO Mark Bristow said in a statement.
LSE- and Nasdaq-listed Randgold’s offices were reopened last week, allowing staff to return.
Randgold pointed out that, in the 20 years the company had been operating in Mali, it had invested CFAfr1.5-trillion ($2.8-billion) and contributed CFAfr2.5-trillion ($4.7-billion) to the country’s economy in the form of taxes, royalties, salaries, payments to local suppliers and community initiatives.
OPERATIONS
Randgold continues to manage its three mines in Mali, with Bristow noting that the Loulo-Gounkoto complex is continuing its strong performance and on track to beat its production guidance of 670 000 oz of gold for the full year.
The feasibility study on the development of a superpit at Gounkoto is due for completion by year-end and current indications are that it will extend Loulo-Gounkoto’s life and enhance its profitability. On the back of its past investment and ongoing efforts, the aim of maintaining yearly production at more than 600 000 oz for the next decade now looks achievable, Bristow stated.
The Morila operation has now progressed to full tailings retreatment as it moves towards closure in 2019. Randgold is, however, investigating opportunities to extend the mine’s life. The Domba satellite pit project is still awaiting approval and has been removed from the 2016 mining plan.
At Loulo, the brownfield exploration team is looking at new targets at both Gara and Yalea. It has already delivered 500 000 oz of additional resources at Gara and is currently generating drill targets for more near-mine high-grade resources at Yalea. There has also been a renewed focus on greenfield exploration for fresh targets on the lease.
“Randgold remains committed to the long-term expansion in Mali of our own presence as well as the country’s miningindustry in general. This we will only be able to achieve in a constructive and mutually beneficial partnership with government.
“In this regard, it’s worth noting that an independent survey recently concluded that while Mali had a high gold mining potential, it was lagging behind its African competitors in terms of its ability to attract investment. Negative factors cited in this regard are its mining code and administration, its tax regime and its infrastructure,” Bristow said.
Source: Mining Weekly
