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Randgold rings changes at Morila Posted: Tue, 06 May 2008 [miningmx.com] -- The future ownership structure of the Morila gold mine in Mali will be settled “one way or another” by end-June according to Randgold Resources (Randgold) CEO Mark Bristow. Randgold owns 40% of the mine with AngloGold Ashanti also owning 40% and the Malian government the balance. Randgold has been operating Morila since February 15 following AngloGold Ashanti’s decision to put its stake up for sale. Bristow added that, since then, Randgold and AngloGold Ashanti have been “following a process” over the sale of the stake which Randgold is interested in buying at the right price. Bristow commented, “the process involves an initial period during which we negotiate in good faith over the purchase of that stake. “If those negotiations are not successful then AngloGold Ashanti has the right to put a selling price on the table and we have a 30 day period in which to decide whether to accept that price or not. “If we don’t accept the price then AngloGold Ashanti has a further 30 day period in which to find a buyer at the price it wants. “We have a tag-along option on that sale meaning the buyer will have to buy Randgold’s stake as well should we also decide to sell out. “If AngloGold does not find a buyer at its price then we start the process from the beginning again.” Bristow declined to specify what stage the sale process had reached and commented, “you should ask AngloGold Ashanti about that.” The remaining life in the Morila open pit mine is only some nine months but then the plant will process surface ore stockpiles which will keep the operation running to 2012. Bristow said the estimated total remaining gold reserves in the mine and the stockpile amounted to 1.5Moz of which Randgold and AngloGold Ashanti’s share amounted to 630,000oz each. “That is not an insignificant amount of gold. Some junior gold miners have started operations on that level of reserve,” Bristow said. The management of Morila was a bone of contention in recent years between Bristow and former AngloGold Ashanti CEO Bobby Godsell who stepped down last year to be replaced by Mark Cutifani who took the decision to sell out of Morila. Bristow said an “on site audit” since Randgold took operational control had revealed three main issues to be tackled including, “lack of short interval controls, poor maintenance and poor communication with suppliers of critical equipment.” Asked what precisely “lack of short interval controls” meant Bristow replied, “it means nobody checked that things that were supposed to be done were actually done.” Click Here to subscribe to our daily newsletter
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