Randgold pulls out of Ghana joint venture

Randgold Resources pulled out of a significant potential joint venture on Monday having talked up the opportunity less than three months ago.

The FTSE 100 mining firm announced it had pulled out of its planned partnership with AngloGold Ashanti to redevelop the Obuasi Mine in Ghana.

Randgold and AngloGold Ashanti previously announced their intentions to form the venture on 16 September 2015.

At the time, Randgold had described the partnership as "groundbreaking", saying it could lead to Obuasi becoming a viable, long-term mining business with "an attractive cost structure and returns".

However, Monday's announcement saw Randgold describing the plan as unsatisfactory.

"After undertaking a due diligence exercise into the mine and the redevelopment opportunity the mine affords, and following the work undertaken on the revised development plan, Randgold has determined that the development plan will not satisfy Randgold's internal investment requirements", the firm said in a statement.

Chief executive Mark Bristow said Randgold remained committed to creating real value for all its stakeholders by "continuing to invest substantially in its exploration programmes with their proven record of success, as well as by investigating potential growth opportunities presented by the market."