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.

Net Present Value/Internal Rate of Return
Not stated.

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
Randgold has noted that Kibali is still a work in progress, with its third openpit now operational and the development of its underground mine ahead of schedule.

Ore from its stopes is already being delivered to the plant, but the underground mine is only expected to be in full production by 2018. The first of the mine’s three hydropower plants were commissioned last year and work on the second is well under way.

The metallurgical plant is operating at its design capacity and construction of the paste plant is nearing completion.

Despite the high level of production and development activity – about 5 000 people are employed on site – Kibali was maintaining a good safety record, with the lost-time injury rate reduced by 16% last year.

Meanwhile, Kibali continues to invest in the development of the regional economy by using local contractors and suppliers wherever possible. A prefeasibility study on a palm oil project, designed to provide a sustainable source of postmining economic activity for the region, had been completed and work on a bankable feasibility study has started.

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.