[miningmx.com] — RANDGOLD Resources has no plans to change its Africa-focused business model and is not tempted by the lure of South American deposits, the gold miner’s CEO said on Friday.
Mark Bristow added that the company remains on track to start construction at its Kibali gold project in the Democratic Republic of Congo by mid-2011, despite high-profile battles between foreign miners and the local government.
“Africa is risky and there’s all this news coming in,” Bristow said. “But that’s our business; we manage that risk and we like to believe that we’re better than most in managing that risk.”
In October, the Congolese government said it had won the right to sell First Quantum Minerals’ assets, including the $750m Kolwezi copper tailings project, to settle a $12bn damages claim.
Randgold’s Kibali project, located in the north of the politically volatile West African nation, has a measured and indicated reserve of 13.9 million ounces.
The London-based company also operates mines in Mali and the Ivory Coast, and is developing a deposit in Senegal.
Bristow said Randgold remains focused on exploration in the region to build up its reserves.
“We’re pretty committed to Africa,” Bristow said. “We’ve built an equity base there. We believe that we can actively play a role in that part of the world and get the ear of the government.”
He added that moving into regions like South America or Eastern Europe would be “a significant investment for us at this stage”.
Randgold recently started production at its Tongon mine in Ivory Coast, and is targeting a 50% increase in overall output in 2011.
Production in 2010 is expected to be about 450,000 ounces, with a fourth-quarter output of around 120,000oz.
Shares of the miner closed down 0.25% on Friday on the London Stock Exchange.
