Kibali gold mine

The Kibali gold mine is located in the northeast of the Democratic Republic of Congo (DRC), approximately 300 kilometres to the east of Isiro the capital of the Haut-Uele Province, 150 kilometres west of the Ugandan border town of Arua and 1 800 kilometres from the Kenyan port of Mombasa. The Kibali gold mine and its associated mining permits is owned by Kibali Goldmines SA (Kibali) which is a joint venture company between Randgold (45%), AngloGold Ashanti Limited (AngloGold Ashanti) (45%) and Société Minière de Kilo-Moto (SOKIMO) (10%). The mine was developed and is operated by Randgold.

Overview

Production, resources and reserves
ACHIEVED IN 2016
  • Produced 585 946oz at a total cash cost of $736/oz
  • Record mill throughput above nameplate design of 7.3mtpa
  • Recovery improved over the year to 84.1% in Q4
  • Underground decline development kept on schedule
  • Started mining from three additional satellite open pits, Kombokolo, Pakaka and Rhino
  • Ramped up underground ore production as planned
  • Completed construction of second hydropower station, Ambarau
  • Initiated construction of the third hydropower station, Azambi, with all Congolese contractors
  • Malaria incidence rate decreased by 26% year on year
  • LTIFR reduced by 21%
  • Maintained ISO 14001 environmental management system certification
  • Progressed ISO 45001 health and safety certification and awaiting finalisation of standard
  • Increased local procurement spending
  • Advanced community development projects
TARGETED FOR 2017
  • Produce 610 000oz of gold
  • Complete vertical shaft development
  • Commission ore handling (haulage, crushing, hoisting) through the shaft
  • Continue to ramp up underground ore production
  • Complete Gorumbwa RAP and commence mining of open pit
  • Commission additional UFG and associated circuit expansion
  • Integrate Ambarau into full power grid and reduce cost of power
  • Advance construction of Azambi hydropower station
  • Obtain ISO 45001 health and safety certification
  • Maintain ISO 14001 environmental certification
  • Continue to focus on best safety and environment practices
  • Initiate macro agribusiness projects
  • Support economic development of surrounding community
KIBALI KEY RESULTS

12 months ended 31 December

2016

2015

Mining

 

 

Tonnes mined (000)

31 879

31 170

Ore tonnes mined (000)

6 218

6 862

Milling

 

 

Tonnes processed (000)

7 296

6 833

Head grade milled (g/t)

3.1

3.5

Recovery (%)

80.0

83.8

Ounces produced

585 946

642 720

Ounces sold

568 375

643 976

Average price received ($/oz)

1 248

1 160

Cash operating costs1 ($/oz)

678

557

Total cash costs1 ($/oz)

736

604

Profit from mining activity1 ($000)

291 101

358 184

Attributable (45%)

 

 

Gold sales1 ($000)

319 217

336 272

Ounces produced

263 676

289 224

Ounces sold

255 769

289 789

Gold on hand at period end2 ($000)

13 840

4 006

Profit from mining activity1 (US$000)

130 995

161 183

Randgold owns 45% of Kibali with the DRC State and joint venture partner owning 10% and 45% respectively.  The group equity accounts for its 45% joint venture holding in Kibali.
1        Refer to explanation of non-GAAP measures provided on page F-40 of this annual report.
2        Gold on hand represents gold in doré at the mine multiplied by the prevailing spot gold price at the end of the period.