Randgold Resources hit by sit-in at Ivorian mine, Mali to beat target

30th Jan 2017 07:27

(ShareCast News) - Randgold Resources has begun negotiations with mine workers conducting a sit-in at its Tongon mine in Côte d'Ivoire since last Thursday, though in better news elsewhere the company said it was confident of topping production guidance for 2016 from its Loulo-Gounkoto mining complex in Mali. Workers at Tongon began what Randgold called the "illegal" sit-in over demands for annual ex gratia payments."Representatives of the central and local governments as well as the union, which does not support the sit-in, have joined management in engaging with the workers to end their action," the FTSE 100 group saidLooking north for better news, chief executive Mark Bristow said Loulo-Gounkoto had enjoyed a record fourth quarter and should top 670,000 oz of gold from Loulo-Gounkoto in 2016.He said it should maintain an annual production of at least 600,000 oz for at least the next 10 years and that this level "should be supported by the decision to proceed with the Gounkoto super pit project, once approved by the board".Exploration activities in western Mali in the fourth quarter at its Loulo property identified more than 600,000 ounces of inferred resources via drilling at Gara in 2016 while recent studies at the Yalea deposit had identified a number of targets for follow-up in 2017.Randgold has also made progress in establishing an 'agripole' at Morila, its Malian operation that is due to close."In partnership with local NGOs, the Ministry of Mines and the Ministry of Industrial Development, a model is being prepared that will demonstrate there is an opportunity to develop a sustainable agribusiness capable of providing a local source of economic activity after Morila's closure which will shortly be presented to Mali's Council of Ministers and the Morila board," the company said.