Randgold denies it will assert rights at Kibali

By | 2018-10-08T13:34:26+00:00 October 8th, 2018|News|0 Comments

Randgold says that the merger between it and Barrick Gold will not have an effect on Kibali Goldmines. 

Randgold Resources has refuted claims by state owned Société de Miniere de Kilo-Moto (SOKIMO) that the recent merger between Randgold and Barrick Gold, will introduce a new partner in the Kibali Joint Venture in the Republic of the Congo (DRC), and that Rangold intends to ‘assert its rights’.

The Kibali gold mine is about 220km east of Isiro, the capital of the Haut Uele province. The mine is owned by Kibali Goldmines, in which Randgold and AngloGold Ashanti each holds 45%, while SOKIMO owns 10% of shares.

The Kibali plant at sunrise

The Kibali plant at sunrise. Image credit: Randgold

Randgold and Barrick – two giant gold mining companies in their own right – recently announced that they will merge to form the world’s largest mining company, which will be worth about USD18-billion. This new entity will have a market capitalisation exceeding that of Newmont Mining and will own half of the world’s top 10 gold mines.

Randgold said in a statement that the proposed merger will have no effect on Kibali Goldmines and there are no provisions in the joint venture agreement and the related documentation which give SOKIMO any rights resulting from the proposed merger.

Randgold also notes that it has consulted comprehensively with SOKIMO at board and executive level in the days following the announcement of the proposed merger, as well as with the Minister of Mines and other interested parties regarding the proposed transaction.  The company says it would continue to engage with all parties to demonstrate that this transaction is in the interests of all stakeholders.