Name and Location
Kibali gold mine, Orientale province, Democratic Republic of Congo (DRC).

Client
The Kibali joint venture comprises Randgold Resources (45%), AngloGold Ashanti (45%) and DRC State-owned mining company Société des Mines d’Or de Kilo-Moto (10%).

Randgold is the developer and operator of the mine.

Project Description
The Kibali operation will comprise an integrated underground and openpit mine, a twin-circuit sulphide and oxide plant, with a throughput of six-million tonnes a year, three self-constructed hydropower stations and a standby high-speed thermal power generator for spinning reserve and backup power during the dry season.

The mine was constructed over two overlapping phases.

Phase 1 covered the metallurgical plant; the first phase of the tailings storage facility; the construction of a hydropower station, a backup thermal power plant, the tailings storage facility and all shared infrastructure; openpit mining; and the completion of the community resettlement programme.

Phase 2 involves the development of the underground mine, including a twin decline and single-shaft vertical system, and the remaining hydropower stations.

The current life-of-mine plan envisages an output of 550 000 oz in 2014, followed by 600 000 oz in the next 12 years, with an average grade of 4.1 g/t and 12-million ounces in reserves.

Value
Kibali represents an initial investment of $1.83-billion, excluding preproduction mining expenses by Randgold and AngloGold Ashanti.

Duration
Phase 1 ran from the first quarter of 2012 to the first quarter of 2014.

Phase 2 is expected to deliver first ore in 2014 and to complete the vertical shaft sinking in 2016.

Latest Developments
In the quarter ended September 30, 2014, Kibali’s operational performance improved significantly, with gold production increasing by 59% to 145 152 oz, mainly on the back of a 26% improvement in throughput and increased head grade milled. The average recovery also improved considerably, mainly owing to the progress in the commissioning of the concentrate and recovery circuits during the quarter, as well as better control over variable transition ore on the run-of-mine pad. Production would have been better, had throughput not been hampered in September, when Mill 1 had to undergo maintenance on the mill support journal, slipper pads and lubrication system. The mill was fully operational by the end of the quarter.

The construction of the metallurgical facility was materially completed at the end of the third quarter, with only punching against agreed lists taking place.

Three of the four turbines of the hydropower projects at Nzoro 2 are now being consistently used within the operation’s power grid, with hydropower use improving during the quarter, although it is not yet at optimum levels. Construction of the second station, Ambarau, has started and is expected to be completed in 2015.

The construction of the paste backfill plant is on schedule for completion and commissioning at the end of 2015.

Meanwhile, the development of the decline shaft system continued well during the quarter and remained ahead of plan at the end of the third quarter. The focus of the development was on the ventilation infrastructure and the completion of the main pumpstation.

The shaft sinking at the vertical shaft is ahead of schedule, with shaft depth being 677 m at the end of the quarter.

The resettlement action plan (RAP) was brought to an end at the end of the quarter with the completion of the Roman Catholic Church. A new moratorium was entered into with the provincial governor during the quarter, extending the exclusion zone to include the Mofu and Gorumbwa deposits.

A limited RAP will be initiated with affected families around the Mofu pit and it was expected to be completed by the end of the fourth quarter. The Gorumbwa RAP is planned to be completed by the end of 2015.

Key Contracts and Suppliers
Byrnecut (underground development); Shaft Sinkers (vertical shaft development); DTP (openpit mining) and DRA (metallurgical facility design and engineering, procurement and construction management).

On Budget and on Time?
Kibali was successfully commissioned ahead of schedule and within budget on September 24, 2013, with gold sales starting the following month.

Contact Details for Project Information
Randgold Resources, tel +44 20 7557 7738 or email randgold@dpapr.com.
Byrnecut, tel +61 8 9270 1000 or fax +61 8 9270 1001.
Shaft Sinkers, tel +27 11 445 4300 or email info@shaftsinkersgroup.com.
DRA, Christoff Badenhorst, tel +27 11 202 8600 or email info@DRAglobal.com.